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New Markets Tax Credits News Briefs - March 2012

Travois New Markets allocated $7.2 million in new markets tax credits (NMTCs) to the Waimanalo Hawaiian Homes Association (WHHA) in Waimanalo, Hawaii. WHHA will use the financing to complete and manage the fourth phase of its community technology, employment and education center. Native Hawaiian residents of the Waimanalo Hawaiian Homestead will be offered a forum for lifelong education and an opportunity to develop career skills. The project is expected to create 46 construction jobs and four full-time positions. WHHA's center marks Travois' first investment on Native Hawaiian homelands, and its construction is expected to be complete by late 2012.

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U.S. Bancorp Community Development Corporation (USBCDC) arranged and will manage a $74 million NMTC fund for American Express. The fund has provided capital for the construction and operation of 11 real estate developments and operating businesses in seven states including Alaska, Arizona, California, Louisiana, Oregon, Utah and Washington. The projects are expected to produce more than 1,600 construction jobs and create more than 1,300 full-time positions. Projects vary from the construction of a community center and new school to the development of a mixed-use commercial and retail center. USBCDC originated the NMTC investments in partnership with experienced community development entities.

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Housing Vermont, through its Vermont Rural Ventures affiliate, provided nearly $3.3 million in NMTC financing to Laraway Youth and Family Services (LYFS) for its new 39-acre campus in Johnson, Vt. The campus includes a fully renovated farm house and a newly constructed 12,550-square-foot school for a total of 16,800 square feet of instructional and office space. LYFS leases some of the land to a neighboring farm and plans to develop agricultural work programs for its students. Community National Bank served as the NMTC equity investor.

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CT/KDF Community Development Partners provided more than $16.1 million in NMTC allocation to fund the redevelopment of four properties along the new Lancaster Promenade in Lancaster, Calif. The project is in its third phase, which involves the acquisition and redevelopment of an office/retail building, the conversion of a former church into a community building, the new construction of a retail/office building, and the new construction of a downtown parking structure. In addition, new solar panels will be installed on several neighboring multifamily properties and more than $6 million in street and traffic improvements will be completed. A subsidiary of InSite Development facilitated the NMTC allocation and USBCDC served as the equity investor. CT/KDF's financing of Lancaster Promenade III is the company's seventh NMTC allocation transaction, and completes its deployment of its original NMTC funds.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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