Sign Up For Novogradac Industry Alert Emails

New Markets Tax Credits News Briefs - October 2010

The Community Development Financial Institutions (CDFI) Fund posted submissions received in response to its request for public comment concerning improving its data collection system, the Community Investment Impact System. The CDFI Fund specifically invited comments on the Awardee/Allocatee Annual Report, representing reporting requirements from participants in the new markets tax credits (NMTC) program, the CDFI program and the Native American CDFI assistance program. The comments, reflecting feedback from a range of industry stakeholders, will be used to increase the efficiency of the CDFI Fund’s data collection and minimize the reporting burden on the public. View the comments on the CDFI Fund’s web site at www.cdifund.gov.

***

The CDFI Fund is seeking and NMTC program financial analyst. Among other things, this analyst reviews and recommends the approval or disapproval of applications for grants, loans, tax credits, related awards, services, and technical assistance from community development financial institutions (CDFIs) and community development entities (CDEs), based on an assessment of the applicant utilizing eligibility criteria. The person in this role also provides outreach, advice, and technical assistance to actual and potential awardees, industry representatives, and other stakeholders, on CDFI Fund programs including certification and application guidelines as well as policies, procedures, feasible and acceptable methods of financing projects, and other related matters. The position closes on October 15, 2010. More information about the position, and instructions for applying, are posted online by going to www.usajobs.gov and searching for CDFI Fund.

***

Crown Square, a $35 million restoration of 27 buildings in St. Louis, Mo. opened recently. Developed by the Regional Housing and Community Development Alliance and the Old North St. Louis Restoration Group, the mixed-use community includes 34,000 square feet of commercial space and 80 mixed-income rental homes, more than half of which are reserved for low-income households. Enterprise Community Investment Inc. provided a $12 million NMTC allocation and McCormack Baron Salazar supplied a $5 million allocation. US Bank served as the investor for both allocations and provided funding through federal and state historic tax credits. Other tax credit equity providers include CityScape Capital Group, PNC Multifamily Capital and Horizon Asset Management.

***

Laurel J. Tinsley joined McCormack Baron Salazar as vice president of finance, director of new markets. She will focus primarily on the firm’s new market and solar tax credit investments. A former partner at Husch Blackwell Sanders, Tinsley has 10 years of experience managing real estate and tax credit transactions as a transactional attorney, with an emphasis on federal and state new markets, historic and low-income housing tax credits. She holds degrees from Southern Illinois University and Washington University in St. Louis.

***

Novogradac & Company has learned that allocatees that were awarded allocations of new markets tax credits under the Recovery Act will not be required to have A-133 audits. Entities that receive federal funds, grants or awards are often required to have circular A-133 audits. These audits are usually performed annually to document the management and use of federal funds by recipients of those funds. There has been some uncertainty regarding whether Recovery Act NMTC allocatees would be required to have an A-133 audit and last month the Community Development Financial Institutions (CDFI) Fund indicated that they are not required. This exception applies only as long as the allocatee does not receive other federal funds that would trigger an A-133 audit. Questions about this audit requirement can be directed by e-mail to [email protected].

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

Learn more about Novogradac's expertise and many services