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New Markets Tax Credits News Briefs - May 2012

The Local Initiatives Support Corporation (LISC) named Matt Josephs its senior vice president for policy, based in the Washington, D.C. office. Josephs brings more than 20 years of government experience to his new role. He most recently served with the Community Development Financial Institutions (CDFI) Fund as senior policy advisor for the New Markets Tax Credit program, and prior to that he was the program manager. Before his work at the CDFI Fund, Josephs was a Senate Banking Committee staffer with a focus on housing and community development issues, and prior to that worked as a policy analyst for the U.S. Department of Housing and Urban Development.

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Travois New Markets helped the Pascua Yaqui Tribe secure $2.4 million in new markets tax credit (NMTC) equity to construct the Pascua Yaqui Education Center. The tribe broke ground on the 40,000-square-foot, two-story building in December. Wells Fargo allocated NMTCs and provided the tax credit equity for the $7.8 million project. The funding filled a financing gap that remained after grants and tribal funds were raised. The center will provide culturally appropriate, multi-generational instruction for secondary, general education development (GED), and adult continuing education students all under one roof. It will include a library and resource center, a technology-based education program and a cultural preservation center, and will host community events. Travois New Markets connected the tribe to Wells Fargo’s NMTC allocation and facilitated the transaction closing. The project is expected to create 40 construction jobs and retain 60 permanent jobs. It is slated to begin serving tribal members in early 2013.

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The Federal Reserve Bank of San Francisco at the National Interagency Community Reinvestment Conference in Seattle, Wash. selected Wells Fargo, Sunrise Community Banks, and Pinnacle National Bank as the 2012 Community Reinvestment Award winners. The awards recognize the work of financial institutions that are advancing innovative solutions to the challenges facing low-income communities. Wells Fargo received the technical assistance award, Sunrise Community Banks won the award for lending, and Pinnacle National Bank was selected to receive the award for partnership with a CDFI. Bank of America, Capital One, and Citibank in partnership with Accion Texas Inc. received honorable mentions. The winners were selected from 75 nominees and judged on their effective use of partnerships, flexibility and innovation, and how they meet the needs of small businesses.

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Enterprise Bank & Trust has promoted Mitchell L. Baris to president of Enterprise tax credit services, the bank’s tax credit lending, brokerage and consulting division. In his new role, Baris will oversee the company’s new markets, low-income housing and historic tax credit programs. He will also be a voting member of the bank’s regional loan committee and will continue his role as a relationship manager focusing on commercial real estate. Baris has 17 years of commercial banking experience. He received a bachelor of science in business administration from the University of Missouri-Columbia and his master of business administration from Washington University in St. Louis.

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Florida Gov. Rick Scott signed into law H.B. 7087 to increase the amount of credits available under the state’s New Markets Development Program (NMDP) and double the corporate income tax exemption. The bill increases the amount of credits from $97.5 million to $163.8 million during the program’s existence and sets a yearly cap of $33.6 million. The changes to the NMDP will go into effect on July 1. A copy of the bill is available at www.newmarketscredits.com.

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Iowa Community Development (ICD) allocated $12 million in NMTCs to Habitat for Humanity. The financing will support the creation of 88 homes for low-income families in 26 communities. ICD also provided a $10 million allocation to Winegard Company in Burlington for a plant expansion that is expected to employ 70 local residents. Iowa Business Growth Company is administering ICD’s allocations.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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