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New Markets Tax Credits News Briefs - April 2016

The Community Development Financial Institutions (CDFI) Fund announced Jan. 25 that it received 238 applications for the 2015 round of the NMTC program. The community development entities (CDEs) that applied were located in 43 states, as well as the District of Columbia, Puerto Rico and Guam. The CDFI Fund applicants requested an aggregate total of $17.6 billion in NMTC allocation authority, which was five times the $3.5 billion in authority available for the 2015 round.

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On March 3, the CDFI Fund released a mandatory annual report that will replace the three-year recertification requirement for all CDFIs. The annual certification report must be completed in the CDFI Fund’s Awards Management Information System (AMIS), will allow the CDFI Fund to annually assess certified CDFIs’ compliance with certification rules. The CDFI Fund will send new certification letters and reporting requirements to CDFIs on a rolling basis, beginning with CDFIs with fiscal years ending in April through September. The reporting deadlines for the first reports are for fiscal years ending from April 1, 2015, to Sept. 30, 2015; the report is due April 30, 2016. For fiscal years ending Oct. 1, 2015, to March 31, 2016, the report is due July 31, 2016. More information is available at www.cdfifund.gov.

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The grand opening for the Nancy and Stephen Grand Family House in San Francisco was held March 2. Family House was founded in 1981 and is a nonprofit organization that serves as a home away from home for families of children with cancer and other life-threatening illnesses by providing physical comfort and emotional support, free from financial concerns. The new Family House building in the Mission Bay neighborhood of San Francisco will consolidate the organization’s two former locations and expand capacity. The $42 million Capital Campaign allows Family House to provide 92,000 square feet of space with 80 bedrooms, communal kitchens and living rooms, a teen room, an exercise room and a private 3,200-square-foot outdoor courtyard. Financing included an $8.3 million in new markets tax credit (NMTC) allocation from the Northern California Community Loan Fund, $3.9 million in NMTC equity from Capital One and a $3 million NMTC allocation from the Capital One Renewal Fund. For more on the Nancy and Stephen Grand Family House, see the article published in the May 2015 issue of the Journal of Tax Credits.

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Cinnaire and the Wisconsin Housing and Economic Development Authority (WHEDA) announced Feb. 4 the close of a $34.5 million transaction to expand Nueske’s Applewood Smoked Meats. The bacon processor received an $8 million NMTC investment from Cinnaire, PNC Community Partners Inc. provided $3 million and $11.5 million was provided by the Greater Wisconsin Opportunity Fund. PNC Bank was the NMTC investor that facilitated the financing of this project, providing a $7 million-plus equity investment. PNC Bank also provided debt financing totaling more than $20 million, including a $9.6 million source loan to Nueske’s which was the leverage lender, and a $10.4 million direct loan to the Nueske’s affiliated qualified active low-income community business (QALICB). This investment will expand Nueske’s current facility to 153,000 square feet, allowing it to increase manufacturing capacity. Additionally, the expansion will create 65 new full-time jobs. Nueske’s Applewood Smoked Meats, founded in 1933, is now in its third generation of business.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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