New Markets Tax Credit News Briefs – September 2019

Monday, September 9, 2019

The New Markets Tax Credit (NMTC) Coalition July 18 released its annual report on the NMTC, which includes a survey of community development entities (CDEs). The “New Markets Tax Credit Progress Report” says that the surveyed CDEs used $3.2 billion in NMTC allocation in 2018 to finance 286 developments in 48 states, Puerto Rico and the District of Columbia, with $61 billion in investment to low-income communities. The report said more than 58,000 jobs were created, including nearly 33,000 permanent, full-time positions. More than 70 CDEs participated in the survey. A copy of the report is available at www.newmarketscredits.com.

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Rep. Denny Heck, D-Wash., and nine other members of the House of Representatives introduced legislation July 10 that if enacted would direct the Community Development Financial Institutions (CDFI) Fund to perform outreach to underserved low-income communities and to encourage investment in Indian country through the NMTC program. The Aiding Development of Vital Assets in Native Communities and Environments Act of 2019 (H.R. 3664) would require the CDFI Fund to create an outreach program for low-income communities with disproportionally low investment from CDEs, including the addition of NMTC application questions that determine whether CDEs intend to invest in Indian country and to the “maximum extent practicable,” ensuring that at least one CDE with a primary mission in Indian country receives allocations each NMTC round.

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The Bennington Redevelopment Group held a groundbreaking Aug. 7 to celebrate the start of Phase 1 of work on the historic Putnam Block in Bennington, Vt. The first phase of the development will include the redevelopment of the historic Hotel Putnam, Old Courthouse and Winslow Building, as well as site improvements. The property will include 30 market-rate and income-qualified apartments and 78,000 square feet of renovated space. Funding includs NMTC allocation from Vermont Rural Ventures, Mid-City Community CDE and Mascoma Community Development, with tax credit equity from U.S. Bancorp Community Development Corporation. Historic tax credit equity is also involved in the transaction.

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NMTC equity will help fund the construction of a 105,000-square-foot office building at Auburn University in Alabama. SunTrust Community Capital will invest $3.2 million in NMTC equity in the property, which will be called the Research and Innovation Center in the Auburn Research Park. UB Community Development allocated NMTCs to the development, which will open in the third quarter of 2020 and is expected to provide 125 temporary full-time construction jobs and 101 permanent full-time jobs. 

Journal Category: 
New Markets Tax Credit
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