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New Markets Tax Credits News Briefs - April 2015

On March 5, the Community Development Financial Institutions (CDFI) Fund released a notice of public comment for its annual assessment evaluation for the CDFI Fund Bond Guarantee program. The reporting form allows CDFIs to demonstrate the ability to deploy long-term debt successfully with reporting requirements similar to those required of regulated financial institutions; to provide a mechanism for accurately assessing Certified CDFI credit risk; and to provide capital markets with a record of accomplishment on which to base future lending and investment. The assessment would apply to those with bonds issued under the CDFI Bond Guarantee program for fiscal year 2015 or later. Comments are due by May 4.


The CDFI Fund released two independent reports Feb. 24 on the NMTC program. The reports, “CDFIs Stepping into the Breach: An Impact Evaluation–Summary Report,” and, “Risk and Efficiency among CDFIs: A Statistical Evaluation using Multiple Methods,” provide comparative analysis and evaluation on the effectiveness of community development financial institutions (CDFIs) as compared with mainstream lenders. The first report is an analysis of the impact of financial assistance awards from the CDFI Program on CDFI loan fund recipients. The second report is an analysis of CDFI banks and credit unions to assess their risk of failure and their operational efficiency relative to mainstream financial institutions. The reports said that CDFI loan fund lending fills market gaps for key underserved low-income populations; the CDFI Fund is the second largest-source of equity to CDFI loan funds after internally generated funds; and despite serving predominately low-income markets, CDFI banks and credit unions had virtually the same level of performance as mainstream financial institutions. The reports are available at


Travois announced 20 years of service and a $1 billion impact in American Indian and Native Hawaiian communities Feb. 23. Travois will celebrate by kicking off the #20YearsEquals campaign, which will highlight client and partner achievements. Travois started in 1995 and began using the low-income housing tax credit (LIHTC) and the NMTC. Travois announced more than 180 LIHTC and NMTC projects were completed in 20 states with 79 Native organizations; 4,621 homes were created or rehabilitated; more than 14,140 people are living in affordable housing; more than 1,758 families are in in homes thanks to their LIHTC program; and more than $566 million was provided in investor equity.


The Mid-Willamette Family YMCA in Albany, Ore., announced Feb. 24 the allocation of $854,000 in NMTCs to complete the construction of a new facility. The facility will be 60,340 square feet and when completed, it will be two-and-a-half times the size of the existing building. There will be two 7,500-square-foot gyms, a six-lane swimming pool, two group exercise studios, a strength and cardio training center, a youth center, racquetball courts, locker rooms and meeting rooms. Costs are expected to total $17 million and it will be complete in October or November.


On March 5, Pizitz LLC announced $23 million in NMTCs to finance the Pizitz Building, a mixed-use development in Birmingham, Ala. Funding for the redevelopment of the registered historic building, constructed in 1923, was provided by the National New Markets Fund LLC. Pizitz LLC also obtained $27 million from the U.S. Department of Housing and Urban Development (HUD) 220 Senior Debt program, as well as federal and state historic tax credits (HTCs). Local funding was also secured through the HUD 108 program, a city streetscape grant and a construction sales tax abatement. The ground floor of the Pizitz Building will serve as the Birmingham Public Urban Market; the mezzanine level will be home to Beta, a contemporary shared workspace; and the remaining floors of the will provide 143 residential units, 20 percent of which will be set aside as affordable housing. Redevelopment costs of the 251,210-square-foot, seven-story building are expected to be $66 million. Construction is anticipated to be complete in fall 2016.

Journal Category:

New Markets Tax Credit



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