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New Markets Tax Credits News Briefs - February 2016

U.S. Bank announced Dec. 21 the investment of $7 million in federal new markets tax credit (NMTC) equity for the construction of the Conway Center. So Others Might Eat (SOME), a faith-based community organization focused on poverty, is building the $90 million Conway Center in the Benning Heights neighborhood of Washington, D.C. When completed, the development will include 202 affordable apartments for low-income individuals and families, a state-of-the-art health center for 15,000 patients per year, a job-training center operated by SOME, as well as shops, offices and green space. The $7 million investment from U.S. Bank will provide 20 transitional rooming units, which will provide units to individuals for a limited length of time. The portion of the project funded by U.S. Bank is expected to produce 18 construction jobs and 15 new permanent jobs. The Conway Center is expected to open in 2017.

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WinnDevelopment LLC, the real estate branch of WinnCompanies Inc., announced Dec. 22 the procurement of $42.5 million in federal NMTCs for the redevelopment of the Sibley Building in Rochester, N.Y. RBC Community Development is providing $20 million of the NMTCs, $12.4 million is from Urban Research Park, $8.4 million is from Community Impact Capital and $1.8 million is from PNC Bank. The 1.1-million-square-foot, 12-story commercial building is located on 3.27 acres. The $110 million phase of the project includes the redevelopment of the sixth floor for the new High Tech of Rochester Inc. business incubator, and development of floors one and two will provide mixed-use commercial and retail space for new businesses, shops and a restaurant. Construction of this phase is scheduled to begin in February.

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On Dec. 18, Delancey Street Associates announced $11.7 million in NMTCs from the Low Income Investment Fund for the commercial development of Site 6 of Essex Crossing in New York. The NMTCs are part of a $79.5 million financing package provided by Wells Fargo that includes a $26.4 million construction loan, of which $6 million came from the nonprofit Low Income Investment Fund. Site 6, a 15-story mixed-use building will house 100 affordable  senior-living apartments and will feature 20,000 square feet of community space, 26,000 square feet of space for nonprofit use and 50,000 square feet of medical facility space. Wells Fargo also provided a $16.9 million construction loan and $11.5 million in low-income housing tax credits (LIHTCs) for the residential portion of Essex Crossing. The 138,000-square-foot building is slated for completion in 2017.

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The Community Development Financial Institutions (CDFI) Fund released the schedule of webinars for the Capacity Building Initiative’s, “Expanding CDFI Coverage in Underserved Areas” series Dec. 16. The webinars, provided by Opportunity Finance Network and its partners, will be held between January and April. The first webinar was Jan. 26. The remaining webinars are Exploring New Models for CDFI Coverage through Formation of New or Affiliated CDFIs, Feb. 9; Capitalization Strategies: Raising Debt and Equity for CDFIs, Feb. 23; Customer Acquisition, March 22; and Fundraising Strategies for your CDFI, April 5. More information is available at www.cdfifund.gov.

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On Jan. 5, the Office of the Comptroller of the Currency (OCC) released Community Reinvestment Act (CRA) evaluations for the period of Dec. 1, 2015, through Dec. 31, 2015. Evaluations were conducted on 17 national banks, federal savings associations and insured federal branches of foreign banks. Of the 17 evaluations released, one rated as outstanding and the remaining 16 rated as satisfactory. The evaluations are available at www.occ.gov.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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