New Markets Tax Credits News Briefs - August 2015

Saturday, August 1, 2015

Reps. Mike Turner, R-Ohio, and Chaka Fattah, D-Pa., sent a sign-on letter June 29 to the House Committee on Ways and Means. The letter advocated for the support of legislative action to extend the new markets tax credit (NMTC) program. Turner and Fattah state that without an extension, communities will lose a tool that has helped create jobs, revitalize neighborhoods and jump-start local economies. The letter was signed by a bipartisan group of 55 members of the House of Representatives. The sign-on letter is available at www.newmarketscredits.com.

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The Community Financial Institutions Fund (CDFI Fund) announced its plan June 10 to implement the Awards Management Information System (AMIS). AMIS will replace the myCDFIFund Portal and the systems and services provided through the portal. AMIS will also provide online certification and awards applications, easier maintenance of organizational data, enhanced data integration and a more streamlined process for acceptance of assistance and allocation agreements for CDFI Fund applicants. AMIS will run beginning August through the fall of 2016. More information is available at www.cdfifund.gov.

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SunTrust Community Capital announced $7 million in NMTCs July 1 for the expansion of the emergency department at Grady Memorial Hospital in Atlanta. An additional $66 million was provided through other private contributions. A new 90,000-square-foot facility will be constructed and the existing emergency department will be renovated. Grady Memorial Hospital anticipates a 15 percent increase in demand over the next several years to more than 135,000 emergency visits per year. The expanded emergency department is expected to be completed and ready for patients in late 2016.

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The CDFI Fund released a request for proposal for a group training and individual technical assistance. The proposed training would target certified community development entities (CDEs) that are minority-controlled nonprofit entities, minority-owned for-profit entities or minority depository institutions (MDIs), to inform them on how they can participate in the NMTC program. The request also asks interested vendors to demonstrate knowledge and expertise of the NMTC program, including but not limited to experience working with minority CDEs (including MDIs), delivering technical assistance and/or consulting services to CDEs, working in and deploying capital to NMTC qualified active low-income businesses located in Native areas, and working with federal financial institution regulatory agencies and regulatory processes.

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The last session of the CDFI Fund’s national listening tour was held Aug. 6. Co-hosted by Annie Donovan, CDFI Fund director, the listening tour was designed to solicit public opinion on a new strategic framework. The tour was intended to encourage discussion and engagement among local community development leaders and practitioners. The CDFI Fund collected input on program effectiveness, access and blind spots.

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On June 24, U.S. Bank announced a $5.6 million investment in the construction of The Stacie Mathewson Community Wellness Center, a new medical facility for the Northern Nevada HIV Outpatient Program, Education and Services (HOPES) clinic in Reno, Nev. Additional state and federal NMTCs were provided by Stonehenge Community Development, Enhanced Community Development and Clearinghouse Community Development Financial Institution. Construction costs for the new 37,500-square-foot building are expected to total nearly $20 million. The three-story building will provide room for the care of an additional 400 patients per month. There will be 42 exam rooms that will allow HOPES to provide primary care for children. The site will also include radiology and diagnostic labs, an infectious disease center, a wellness center, a pharmacy, a community meeting room, a basketball court and a combination community vegetable and HIV-memorial garden. The expansion is expected to produce 105 construction jobs, 43 new permanent positions and retain 52 existing jobs. Construction is expected to be completed by December.

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Greenville New Markets Opportunity II (GNMO II) announced June 10 that it provided $10 million in NMTCs for the development of a Sweet Street Desserts Inc. manufacturing facility in Greenville, S.C. The GNMO II funds awarded will aid the revitalization of the bakery and provide new machinery and equipment. The bakery will occupy a 120,000-square-foot site and is expected to create 100 permanent jobs over the period of several years. Sweet Street Inc. is also working with Apprenticeship Carolina to create nine separate culinary apprenticeship programs. Local economic impact is expected to total $92 million. Sweet Street Desserts Inc. expects to begin manufacturing operations this summer to service customers around the world.

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