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New Markets Tax Credits News Briefs - July 2012

CEI Capital Management LLC (CCML) provided nearly $6 million in three new markets tax credit (NMTC) allocations to build 31 Habitat for Humanity homes in distressed areas of Connecticut. The Habitat affiliates were selected as part of a larger NMTC investment made by CCML that funded $1.88 million to each of 10 affiliates to build a total of 239 homes nationally. The Connecticut homes range from 768 to 1,728 square feet and will be built to an Energy Star or higher standard. As a result of this transaction, three full-time and two part-time Habitat affiliate jobs were created as well as 143 construction jobs. Smith NMTC Associates facilitated and structured the transaction.

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Approximately 24.8 million Americans live in areas with limited supermarket access (LSA), according to a report from The Reinvestment Fund (TRF). The study, “Searching for Markets: The Geography of Inequitable Access to Healthy and Affordable Food,” was commissioned by the Community Development Financial Institutions (CDFI) Fund to examine the disparity in access to healthy food for low-income and minority populations. The report identified 1,519 communities where supermarkets do not exist and where unmet demand is large enough to support a full-service grocery store. It also found that residents living in LSA areas are 2.28 times more likely to be low-income, and that minority populations can be nearly 2.5 times more likely to live in an LSA area than non-minority populations. The CDFI Fund released the report as part of a series of trainings to help CDFIs develop the capacity to provide financing for a variety of healthy food retail establishments. More information about the trainings and the report are available at www.cdfifund.gov.

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The CDFI Fund requested comments concerning the reporting and record retention requirements for the Capital Magnet Fund (CMF), which uses an annual report to collect data points from CMF awardees. This comment solicitation builds on the agency’s first request for comments in September 2010 and has been reissued to fulfill changed administrative needs. The CDFI Fund also released a revised Capital Magnet Fund Awardee Data Collection Memo that has been updated to reflect comments received from the 2010 comment request as well as policy decisions that have been made since the program’s implementation. Written comments should be received by August 7. Refer to the June 8 Federal Register notice for details.

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A 1.65 megawatt solar photovoltaic installation was commissioned in May on the Salt Palace Convention Center in Salt Lake City, Utah. The system is expected to offset 17 percent of the center’s annual electricity consumption and is the largest solar installation in Utah to date, according to the developer, CarbonFree Technology Corp. It covers 3.85 acres of roof space and uses 6,006 solar modules made in Arizona. CarbonFree also structured the project’s financing, which consists of NMTCs, qualified energy conservation bonds, a Section 1603 grant and other federal grants. Financing partners include JPMorgan Chase and the National Development Council. The system’s installation required 14,000 man-hours of locally sourced labor.

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Matt Reckman was promoted to vice president, relationship manager in U.S. Bank’s commercial banking group in Cincinnati, Ohio. Reckman, who has 11 years of experience in commercial banking and payment services, serves the bank’s customers in the Cincinnati area as well as in Maryland, Virginia and Washington, D.C. He is the bank’s NMTC and historic tax credit specialist for the region, and also serves the traditional commercial and industrial industries. Reckman serves on the development committee for St. Aloysius Orphanage.

Journal Category:

New Markets Tax Credit

Authors:

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