New Markets Tax Credits News Briefs - June 2016

Thursday, June 9, 2016

The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund announced April 21 that it received 125 applications under the fiscal year (FY) 2016 round of the Capital Magnet Fund. The applicants requested an aggregate $609.1 million in awards, far exceeding the $93.5 million available for awards under the FY 2016 round. The CDFI Fund also announced that it will forward all eligible applicants to the external qualitative review stage, allowing all applicants to receive a full review. The Capital Magnet Fund offers competitive grants to CDFIs and nonprofit affordable housing providers to finance affordable housing and community revitalization efforts that serve low-income populations. More information on the application review and selection process is available on the CDFI Fund’s website.

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Nebraska Legislative Bill 1022 was effective April 18, extending the state’s New Markets Job Growth Investment Act to Dec. 31, 2022. The original sunset date was Dec. 31, 2019. The state tax credit retains a $15 million cap, maintains a compliance period of seven years and must use at least 85 percent of the proceeds from qualified equity investments (QEIs) to make qualified low-income community investments (QLICIs) in a qualified active low-income community business (QLICBs) in the state.

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On March 28, CEI Capital Management LLC, a practitioner of the New Markets Tax Credit (NMTC) program, announced that Sheila Saxton and Doug Schaeffer were named to the company’s board of directors. Saxton most recently serviced on CEI Capital Management’s advisory board. She is director, head of servicing and operations at the Calvert Social Investment Foundation. Saxton was previously a director and an asset manager at Fannie Mae, and before that, she spent more than a decade as a community development banker at Bank of America and NationsBank. Schaeffer is executive vice president, Community Reinvestment Act (CRA) at Woodforest National Bank. Before taking on this role, he served in a series of leadership roles at Ally Bank, most recently leading the transformation of the bank’s CRA program.

Journal Category: 
New Markets Tax Credit