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New Markets Tax Credits News Briefs - December 2013

On Oct. 21, the Community Development Financial Institutions (CDFI) Fund added new reference materials to its online Capacity Building Initiative Resource Bank. These are for the “Strengthening Small and Emerging CDFIs” training series, which provides capacity building services and resources to small and emerging CDFIs. The new Resource Bank is a supplement to the series, with new topics covering the training curriculum for organizational growth, effective business models and organizational change management. The Resource Bank will soon include technical assistance webinars.

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The CDFI Fund announced a search for well-qualified personnel to serve as application reviewers and alternates for the 2013/2014 round of NMTCs. General candidate qualifications and responsibilities include expertise in community and economic development finance, working independently and remotely and specialized knowledge in commercial finance, including but not limited to operating business and real estate finance, financing of community-based organizations, and or financial counseling, particularly for small businesses or prior experience serving as an NMTC allocation reviewer. More information is available online at www.cdfifund.gov.

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The CDFI Fund and the U.S. Department of the Treasury released a notice on Oct. 28 asking for comments concerning the qualified issuer application, the guarantee application and the secondary loan requirements for the CDFI Bond Guarantee program. Some questions the CDFI Fund is seeking answers to include 1) Are the revised drafts of the qualified issuer application and guarantee application clearer and more streamlined than the applications used for the FY 2013 round?; 2) Are there additional or alternative data that the CDFI Fund should request in order to consider different institution types that may be eligible to serve as qualifies issuers?; and 3) How should the secondary loan requirements be modified to reduce the burden of program participation? Comments are due on or before Dec. 27. Both the notice and the documents are available at www.newmarketscredits.com.

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On Oct. 17, the East Lake Foundation received $34 million in NMTCs to complete construction for the new Charles R. Drew Charter School Junior and Senior Academies. The 200,000-square-foot facility, located on the Charlie Yates Campus in Atlanta, Ga., will provide space for the Junior Academy (grades 6-8) and the Senior Academy (grades 9-12). Currently under construction, the $73 million LEED Gold facility is expected to open in summer 2014. Approximately 1,000 sixth through 12th graders will make use of the facility, with an anticipated 485 teachers and staff to be employed. Financing for the expansion included $7 million in NMTCs from PNC Bank; $12 million from Community Affordable Housing Equity Corporation (CAHEC); $10 million from the Low Income Investment Fund (LIIF); and $5 million from Urban America.

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On Oct. 18, the College of Our Lady of the Elms, a liberal arts college in Chicopee, Mass., held a dedication for its new Center for Natural and Health Sciences (CNHS). The center was financed with $12 million in NMTCs from Massachusetts Housing Investment Corporation., with Peoples Bank and United Bank as investors. The center is 22,000 square feet, and includes lectures halls, computer information technology laboratories, biology and chemistry laboratories and a nursing skills and simulation laboratory. A capital campaign and tax-exempt bond proceeds lent to the college by local banks – led by Chicopee Savings Bank – also provided funding. The College of Our Lady of the Elms broke ground for the CNHS in June 2012. Classes will begin in January 2014.

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In partnership with St. Louis Development Corporation, U.S. Bancorp Community Development Corporation (USBCDC) provided $1.7 million in NMTC financing for the St. Louis, Mo. based T-REx’s relocation. T-REx, a venue providing startup entrepreneurs with space, is moving to a permanent location in the Lammert Building. T-REx currently provides space to more than 70 startup companies, accelerator programs and venture capital firms. The relocation would allow for the accommodation of up to 50 more companies, creating 240 additional full-time jobs during the next five years.

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Building America CDE Inc., subsidiary of AFL-CIO Housing Investment Trust (HIT), is providing $9.2 million in NMTCs for the construction of a clinical science center at the Roswell Park Cancer Institute in Buffalo, N.Y. The 11-story, 142,000-square-foot facility will provide new patient screening, outpatient clinics, team diagnostic space and other clinical and administrative services, including targeted cancer screening and counseling for high-risk, medically underserved populations in the surrounding communities. Expanded programs will include 10,000 on-site mammogram screenings annually, the creation of a cancer survivorship program, expansion for the institute’s department of cancer prevention and control and the expansion of the institute’s high risk clinic and the chemotherapy infusion clinic. Development is expected to generate 210 on-site union construction jobs and to support 340 permanent jobs in the new facility. Financing also included $30.5 million in NMTCs provided by Building America and three other community development entities (CDEs) and donations and sponsor equity. Construction will total $46.3 million.

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USBCDC announced Oct. 29 that it closed on $3 million in NMTC equity for the rehabilitation of Union Station Located in St. Louis, Mo., the total development cost is $50 million. Lodging Hospitality Management, which owns the property, plans to update 539 guest rooms at the St. Louis Union Station DoubleTree, as well as update the exhibition and grand halls. Enterprise Bank & Trust provided a $30 million loan, federal and state historic tax credit (HTC) equity and proceeds from the Union Station Community Improvement District and the Union Station Transportation Development District. Renovations are expected to be completed by April.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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