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New Markets Tax Credits News Briefs - July 2014

The New Markets Tax Credit (NMTC) Coalition released the annual report, “New Markets Tax Credit Progress Report, 2014,” in early June. The NMTC Coalition conducted a survey of community development entities (CDEs) and their activity in 2013. In the responses the coalition received, 64 CDEs reported receiving a combined total of $17.1 billion in allocations. A total of 280 businesses received NMTC financing in 2013. Of the investments, 100 percent were made in qualified low-income communities, 80 percent were made in severely distressed communities and 56 percent were made in communities with unemployment rates of at least 1.5 times the national average. The report also found that more than 54,000 jobs were created last year. The report is available at www.newmarketscredits.com.

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The Kentucky Department of Revenue implemented an emergency rule for the state NMTC on June 5. Emergency Rule 103 KAR 15:180E provides the proper forms and procedures necessary to apply for, and administer, the NMTC. The emergency rule also informs applicants of the availability of $10 million in credits annually for taxable years beginning on or after Jan. 1, 2014. This increase is effective July 15, 2014. The emergency rule was issued in responses to the enactment of H.B. 445 on April 10. At press time, a permanent regulation was pending. Emergency Rule 103 KAR 15:180E is available at www.newmarketscredits.com.

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On May 19, the Community Development Financial Institutions (CDFI) Fund announced that it selected the Wisconsin Housing and Economic Development Authority (WHEDA) as a qualified issuer under the fiscal year (FY) 2014 round of the CDFI Bond Guarantee program. WHEDA may now issue bonds and make bond loans to eligible community development financial institutions (CDFIs). In addition, the U.S. Department of the Treasury’s CDFI Bond Guarantee program was promised an amount of $750 million in bonds. Qualified issuer applications were due June 23, and guarantee applications were due June 30.

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On May 20, the Atlanta Neighborhood Development Partnership Inc. (ANDP) and The Reinvestment Fund (TRF) announced a partnership to work to increase metro Atlanta’s access to capital for community economic development including affordable and mixed-income housing. John O’Callaghan, president and CEO of ANDP, said in a press release that low-income neighborhoods are still underperforming and are in need of capital for foreclosure redevelopment, new housing development, commercial activity and more, and that the partnership with TRF will ensure more of those needs are met.

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Citi Community Capital announced on May 21 that it provided a $77 million loan to Advantage Capital Partners for small-business start-ups. The loan will work in conjunction with the both federal and state NMTC programs in a total of seven states including Florida, Louisiana and Nebraska. The loan will be directly available to small businesses and all loans made by the fund will be in designated distressed areas.

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On June 3, Hope Enterprise Corporation (HOPE) and Habitat for Humanity of the Mississippi Gulf Coast, announced a partnership to build 41 homes in Harrison, Jackson and Stone counties. The collaboration will use $5 million in NMTCs to construct the homes. There are 14 homes currently constructed, with the remainder of the homes expected to be complete by fall 2014.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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