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Tuesday, September 28, 2021

The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund updated its guidance and information this month for the fiscal year (FY) 2021 application round on its website.

Wednesday, September 22, 2021

The Ohio Department of Development opened Tuesday the window to apply for its Transformational Mixed Use Development program, which provides a tax credit against costs incurred while building a development. One-hundred million dollars is available in estimated tax credits per year for fiscal years (FY) 2022, 2023, 2024 and 2025.

Tuesday, September 14, 2021

The Community Development Financial Institutions (CDFI) Fund will publish in Wednesday’s Federal Register a notice proposing minor revisions to CDFI Bond Guarantee program forms such as deleting and adding lines to applications and reports and updating calendar years. A proposed clarifying paragraph would be added to the guarantee application regarding applications that are deferred until a subsequent application round.

Thursday, September 9, 2021

Rep. Mike Thompson, D-California, introduced today the Local Food Production Enhancement Act of 2021, a bill aimed at boosting investment in agricultural production through new markets tax credits (NMTCs). H.R. 5176 would make qualified farming businesses eligible for the NMTC and adjust the applicable percentage of new qualified equity investments (QEIs) to 6% for the first four allowance dates and 7% for the remainder.

Thursday, September 9, 2021

The Community Development Financial Institutions (CDFI) Fund will publish a notice of funds availability (NOFA) for the fiscal year 2021 (FY 2021) funding round of the Capital Magnet Fund (CMF) in Friday’s Federal Register. The CDFI Fund will award up to $380.2 million in grants to CDFIs and nonprofit organizations to finance affordable housing and related economic development and community services. The award size is significantly larger than in previous rounds and the CDFI Fund will consider requests that significantly exceed the maximum awards in previous rounds. The CDFI Fund will not accept applications nor will it issue awards for less than $500,000.

Wednesday, September 1, 2021

The Community Development Financial Institution (CDFI) Fund today announced the allocation of $5 billion in new markets tax credits (NMTCs) in the calendar year 2020 (CY 2020) allocation round. A total of 100 community development entities (CDEs) were awarded allocations. The CDEs are based in 34 states and the District of Columbia and 20% of the NMTC-financed investments will be made in rural communities. 

Tuesday, August 24, 2021

The House of Representatives approved the fiscal year 2022 budget resolution Tuesday, unlocking forthcoming $3.5 trillion reconciliation legislation that will likely include a significant expansion of the low-income housing tax credit (LIHTC), creation of the neighborhood homes tax credit (NHTC) to incentivize the development and rehabilitate single-family housing in distressed neighborhoods and more funding for a wide variety of U.S. Department of Housing and Urban Development (HUD) programs. In addition to these resources, the forthcoming reconciliation legislation possibly could include the creation of the middle-income housing tax credit (MIHTC) to serve renters earning just above LIHTC income limits and expansion and enhancement for the federal historic tax credit (HTC), permanence and expansion of new markets tax credit (NMTC), extension and substantial expansion of renewable and clean energy tax credits

Thursday, July 29, 2021

Legislators in both houses of Congress this week introduced a bill to create a tax credit to convert unused office buildings into residential, institutional, hotel or mixed-use properties. The Revitalizing Downtowns Act (S. 2511) would create a 20% tax credit for expenses to convert obsolete office buildings, which are structures that are at least 25 years old. Residential conversions would require at least 20% of the units to be dedicated to affordable housing. Bill sponsors–Sens. Debbie Stabenow, D-Michigan, and Gary Peters, D-Michigan; Reps. Jimmy Gomez, D-California, Dan Kildee, D-Michigan and John Larsen, D-Connecticut–noted a decrease in the use of office space in the wake of the COVID-19 pandemic and rise of remote work.

Monday, June 28, 2021

The board of governors of the Federal Reserve System (Fed) and Federal Deposit Insurance Corporation (FDIC) released the list of distressed or underserved nonmetropolitan middle-income geographies for 2021, which makes revitalization or stabilization activities in those areas eligible for Community Reinvestment Act (CRA) consideration. The designations reflect local economic conditions, including unemployment, poverty and population changes. The Fed and FDIC continue to apply a one-year lag period for areas listed in 2020 that are no longer designated as distressed or underserved, making revitalization or stabilization activities in those geographies eligible for CRA condensation for 12 months after the publication of the current list.

Tuesday, June 15, 2021

Legislation in California would create a state-level new markets tax credit (NMTC) incentive. A.B. 1572, introduced in March, would create a state credit with an annual $100 million cap, for taxable years beginning on or after Jan. 1, 2023, and before Jan. 1, 2028. 

Tuesday, June 15, 2021

The U.S. Department of the Treasury today awarded $1.25 billion COVID-19 relief funding to community development financial institutions (CDFIs) through the CDFI Rapid Response Program (RRP).  The awards go to 863 CDFIs to provide necessary capital for CDFIs to respond to the economic challenges from the pandemic, particularly in underserved communities. The CDFI RRP funds will support activities such as financial products, financial services, development services and certain operational activities. The recipients are in 48 states, the District of Columbia, Puerto Rico and Guam.

Wednesday, June 9, 2021

Nebraska Gov. Pete Ricketts signed legislation that extends the Nebraska New Markets Job Growth Investment Act by allowing a 2021 allocation of $15 million. L.B. 682 authorizes the state credits for properties that receive federal new markets tax credits (NMTCs). The state credits are redeemed by community development entities in Year 3 through Year 7 and qualifying small business may receive a maximum investment of $10 million.

Monday, June 7, 2021

The Community Development Financial Institutions (CDFI) Fund has updated its CDFI transactional level report (TLR) data point guidance, revising select provisions from the September 2020 guidance. The specific revisions relate to CDFI loan participations, which no longer preclude loan participations made on different dates. The CDFI Fund updated the guidance, based on the possibility that the “same date” instruction could lead to confusion.

Friday, May 28, 2021

The White House today released a summary, fact sheet and Greenbook on President Joe Biden’s proposed $6 trillion budget for fiscal year 2022. Of this amount, the Biden administration requests $1.67 trillion in discretionary spending, $754 billion for defense and $913 billion for nondefense, the first such request where nondefense exceeded defense in recent history.

Thursday, May 27, 2021

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation today published a statement that extends for 36 months the period for favorable Community Reinvestment Act (CRA) regulation consideration for bank activities that help revitalize or stabilize disaster areas in Puerto Rico and the U.S. Virgin Islands hit by Hurricane Maria. The extension now lasts through Sept. 20, 2023, and applies to institutions located outside of the areas.

Thursday, May 20, 2021

The Community Development Financial Institutions (CDFI) Fund today released a request for information on its upcoming procurement of a contractor to lead an effort to increase new markets tax credit (NMTC) investment in NMTC Native Areas.

Tuesday, May 18, 2021

A bipartisan group of eight U.S. senators, as well as two members of the House of Representatives, introduced legislation today that would require $500 million in new markets tax credits (NMTCs) to be allocated to “rural job zones” in 2022 and 2023. The Rural Jobs Act defines those zones as low-income communities with a population of less than 50,000 that are not adjacent to an urban area.

Tuesday, May 18, 2021

The Office of the Comptroller of the Currency (OCC) today announced that it will reconsider its final rule to modernize the agency’s regulations for the Community Reinvestment Act (CRA) and will not implement much of the evaluation criteria in the May 2020 rule. The announcement, in OCC Bulletin 2021-24, says the OCC will continue to implement certain provisions that had a compliance date of Oct. 1, 2020. OCC issued the final rule after stakeholders provided more than 7,500 comments–most of them in opposition to the final rule.

Friday, April 30, 2021

Sen. John Hoeven, R-North Dakota, and Sen. Ron Wyden, D-Oregon, this week reintroduced the Move America Act to bring billions of dollars to grow and repair infrastructure through an expansion of private activity bonds and the creation of an infrastructure tax credit. S. 1403 would allocate Move America Bonds to states, based on population size. The legislation would allow smaller states the ability to trade in some or all of their bond allocation for federal tax credits at a 25% exchange rate

Wednesday, April 21, 2021

Four U.S. Senators today introduced legislation to create tax incentives for small businesses that add employees or investment. Sen. Ron Wyden, D-Oregon, Sen. Ben Cardin, D-Maryland, Sen. Maggie Hassan, D-New Hampshire, and Sen.