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New Markets Tax Credits News Briefs - May 2013

The Community Development Financial Institutions (CDFI) Fund released additional resources for CDFI recertification applicants, including recordings of recertification conferences and a frequently asked questions (FAQ) document. The resources are available on the CDFI Fund’s website at www.cdfifund.gov.

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Downtown Detroit’s David Whitney Building will receive NMTCs, brownfield and historic tax credits for rehabilitation efforts. The 18-story mixed-use building will receive tax credit financing from Bank of America Merrill Lynch. The project will total $82 million and will focus on both new additions and preservation of original construction detail. The 1914 building, part of the Grand Park historic district, will have retail space, a boutique hotel and apartments.

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Chicago’s Shops and Lofts development will receive $3.3 million in NMTCs. Developer Community Builders Inc. and Mayor Rahm Emanuel, attended the groundbreaking in early April. Shops and Lofts will be a five-story, 72-unit building with 55,000 square feet of retail space. The residential portion of the property will have 44 affordable housing units, 28 public housing units and 24 market-rate apartments. Wal-Mart will take up the retail space and will be developed by Skilken and TROY Enterprises. Also included will be two new six-unit, a new nine-unit and a rehabilitated three-unit apartment buildings. In addition to the NMTCs, the development will receive $7.8 million from the Chicago Housing Authority and $13 million in tax increment financing. The project is expected to total $45.6 million.

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The existing Family Health Centers of San Diego (FHCSD) center will triple in size thanks to NMTC financing provided by Enterprise Community Investment Inc., Enterprise Community Loan Fund (ECLF), Nonprofit Finance Fund (NFF) and Chase. The three-story building will be 22,942 square feet and is expected to serve 12,800 patients annually. The health center, which provides services to low-income patients in the San Diego area, will have 29 exam rooms, five dental stations and 4,562 square feet of office and administrative space. Enterprise is providing $9 million in NMTCs with Chase providing the NMTC equity investment. ECLF and NFF are each providing $3.1 million in bridge loans. FHCSD is contributing the land for the project and more than $400,000 in cash to the project. Construction on the new center began in November 2012 and is expected to be completed by October 2013.

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In 2012, New Markets Support Company (NMSC), a subsidiary of Local Initiatives Support Corporation (LISC), invested $91 million in the federal New Markets Tax Credit program. The capital supported community projects such as inner-city retail development, rural manufacturing facilities, charter schools and industrial sites, office space, and health centers. It also helped to create more than 1,900 jobs. Last year, NMSC started to provide services for other companies and organizations working in NMTCs, such as managing investments and providing accounting and compliance services.

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Arboretum Place in Boston’s Jamaica Plain neighborhood received $8 million in NMTCs, a $2.1 million construction loan and $5.9 million in construction financing, which became a permanent mortgage through the construction lender Rockland Trust's NMTC program. Arboretum Place has 40,000 square feet of mixed-use space for the Harvest Co-op Market, Boston Cat Hospital, Summer Search, Massachusetts Society for the Prevention of Cruelty to Children, and Dane Street LLC. The project also created 195 permanent jobs.

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The U.S. Department of the Treasury released a notice and request for comments concerning the Certification of Material Events Form. The Certification of Events Form is used by CDFI Fund awardees, applicants and community development entities (CDEs). Comments are due May 28.

Journal Category:

New Markets Tax Credit

Authors:

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