CRA Modernization Proposal Released

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are soliciting comment on a new proposal to modernize Community Reinvestment Act (CRA) regulations.

Changes to CRA are of great interest to NMTC practioners. Bank investors are important partners in the NMTC program and provide the private sector capital necessary for CDEs to invest in meaningful community and economic development projects in underservedareas. CRA serves as one of several primary motivators for NMTC equity investors. In recent years,demand for NMTCs from CRA-motivated financial institutions has been at or near an all-time high. Higher demand for NMTCs translates to more benefit for businesses, facilities and community revitalization efforts in low-income communities. It allows community development organizations to stretch each dollar of NMTC allocation further, producing a greater community impact and reaching areas of deeper distress. Robust demand for NMTCs also helps CDEs make the vast majority (more than 75 percent) of their loans and investments in severely distressed communities that far exceed the statutory requirements for distress.

The Proposal

The good news is that the NMTC – and activities associated with it – are mentioned throughout the proposal will continue to qualify for CRA consideration under the proposal. But it is not yet clear how the expansion of qualifying activities or the changes in geographic focus will impact demand for NMTCs.

The proposal eliminates the “investment test” and instead classifies all loans, investments, other development services benefiting LMI tracts or populations as “community development.”

We are reviewing the proposal and the Coalition will be providing comments. It includes 22 specific questions (scattered throughout) where the agencies are seeking comment. We’ve isolated them and you can download all the questions in a Word DOC below. The document includes citations where you can find the sections relevant to the questions.

Below are a few sections in the NPR related to the NMTC:

Qualifying activities criteria

(a) General. Retail loans, community development loans, community development investments, and community development services that help meet the credit needs of a bank’s entire community, including low- and moderate-income communities, are qualifying activities if they meet the criteria in this section at the time the activity is originated, made, or conducted. If the activity is subsequently purchased by another bank, it is a qualifying activity if it meets the criteria in this section at the time of purchase.

https://www.occ.gov/news-issuances/federal-register/2019/nr-ia-2019-147-federal-register.pdf (Page 193)

Qualifying Community Development Activities

The proposal broadly outlines the community development loans and investments that would qualify. Below, we’ve excerpted some sections relevant to CDEs and CDFIs:

Community development loans, community development investments, and community development services. A community development loan, community development investment, or community development service is a qualifying activity if it provides financing for or supports:

(1) Affordable housing, which means:

(ii) Owner-occupied housing purchased, refinanced, or improved by low- or moderate-income individuals or families, except for home mortgage loans provided directly to individuals or families;

(2) Another bank’s community development loan, community development investment, or community development service;

(4) Community support services which means activities, such as child care, education, health services, and housing services, that partially or primarily serve or assist low- or moderate-income individuals or families;

(5) Essential community facilities that partially or primarily benefit or serve:

(i) Low- or moderate-income individuals or families; or

(ii) Low- or moderate-income census tracts, distressed areas, underserved areas, disaster areas consistent with a disaster recovery plan, or Indian country; (

6) Essential infrastructure that benefits or serves:

(i) Low- or moderate-income individuals or families; or

(ii) Low- or moderate-income census tracts, distressed areas, underserved areas, disaster areas consistent with a disaster recovery plan, or Indian country;

,,,

(8) Federal, state, local, or tribal government programs, projects, or initiatives that:

(i) Partially or primarily benefit low- or moderate-income individuals or families;

(ii) Partially or primarily benefit small businesses or small farms as those terms are defined in the programs, projects or initiatives; or

(iii) Are consistent with a bona fide government revitalization, stabilization, or recovery plan for a low- or moderate-income census tract; a distressed area; an underserved area; a disaster area; or Indian country;

(9) Financial literacy programs or education or homebuyer counseling;

(12) A Small Business Administration Certified Development Company, as that term is defined in 13 CFR 120.10, a Small Business Investment Company, as described 13 CFR part 107, a New Markets Venture Capital company, as described in 13 CFR part 108, a qualified Community Development Entity, as defined in 26 CFR 45D(c), or a U.S. Department of Agriculture Rural Business Investment Company, as defined in 7 CFR 4290.50;

(13) Ventures undertaken, including capital investments and loan participations, by a bank in cooperation with: a minority depository institution, women’s depository institution, Community Development Financial Institution, or low-income credit union, if the activity helps to meet the credit needs of local communities in which such institutions are chartered, including activities that indirectly help to meet community credit needs by promoting the sustainability and profitability of those institutions and credit unions.

Qualifying Activities Illustrative List

The proposal also provides a non-exhaustive list of examples of activities that would qualify. A quick scan of that list reveals many activities that overlap with NMTC projects. Three examples explicitly mention the NMTC:

Loan to a small business to purchase real estate related to a New Markets Tax Credit project, as provided for in 26 U.S.C. 45D.

Public welfare investment, under 12 CFR part 24, to a qualified Community Development Entity that will provide financing for a food market to build a 180,000 square foot refrigerated warehouse and food distribution facility.

An investment in a New Markets Tax Credit-eligible Community Development Entity to fund a mixed-use project that will include affordable housing for LMI individuals and families and retail space for small businesses.

https://www.occ.gov/news-issuances/federal-register/2019/nr-ia-2019-147-federal-register.pdf (Pages 98 and 100)

Find the full list: https://www.occ.gov/news-issuances/federal-register/2019/nr-ia-2019-147-federal-register.pdf (pages 86-101)

Other Notable Proposals

Utilizing the NMTC’s poverty threshhold

Interestingly, the proposal references the NMTC’s criteria for poverty:

The proposal also would revise the definitions of distressed nonmetropolitan middle-income area and underserved nonmetropolitan middle-income area to include additional census tracts where there are unmet financial needs. Specifically, the requirement that a distressed area be a nonmetropolitan area would be removed to recognize that there may be urban areas that experience high rates of poverty, unemployment, or population loss and need financial resources. Although the agencies also considered lowering the poverty threshold in the definition of distressed area to as low as 15 percent, they decided to retain the 20 percent threshold because it is consistent with the threshold used in some other Federal programs that are intended to benefit low-income communities, such as the New Markets Tax Credit program.

Calculating the qualifying activities value

Qualifying activities would be quantified as follows:

• Qualifying loans and CD investments would be valued based on their average month-end on-balance sheet dollar value, except that qualifying retail loans originated and sold within 90 days of their origination date would be valued at 25 percent of their origination value.

• Legally-binding commitments to invest that are reported on the Call Report, Schedule RC-L, would be valued based on their average month-end dollar value.

• Qualifying commitments to lend would be valued based on the average month-end dollar value of the allowance for credit losses on those commitments that are reported on the Call Report, Schedule RC-G.

• CD services and monetary or in-kind donations would be credited at the value of the monetary donation or in-kind activity or at the hourly salary as estimated by the Bureau of Labor Statistics for the job category of the service provided for the number of hours provided. If a CD activity partially benefits the intended population or area, then the quantified value would be a pro-rata share of the full quantified dollar value of the activity, as described above, equal to the percentage of partial benefit.

….

A bank would calculate its bank-level and assessment area qualifying activities values by taking the sum of the quantified values of all qualifying activities, adjusted by any applicable multiplier, as follows:

Qualifying loans on balance sheet for at least 90 days and CD investments

PLUS

Twenty-five percent of the origination value of qualifying loans sold within 90 days of origination

PLUS

CD Services and Monetary and In-Kind Contributions

https://www.occ.gov/news-issuances/federal-register/2019/nr-ia-2019-147-federal-register.pdf (Pages 36-37)

Financial Literacy Programs

The proposal adds a criterion for financial literacy programs or education or homebuyer counseling that benefits individuals of all income levels. The agencies believe that financial literacy is an important issue irrespective of income level. Moreover, some stakeholders expressed support for providing CRA credit for financial literacy programs for all individuals. These stakeholders cited high levels of student and credit card debt and a lack of retirement and other savings as reasons for providing broader consideration of financial literacy-related activities.

https://www.occ.gov/news-issuances/federal-register/2019/nr-ia-2019-147-federal-register.pdf (Page 28)

New State Fact Sheets

We’ve updated our State Fact Sheets with NMTC data through the 2nd quarter of 2019. Most of the data is from the CDFI Fund, which recently released NMTC transactions through 2017. The data from 2018 and 2019 comes from the Coalition’s annual surveys, CRA data from Office of the Comptroller of Currency, and many hours of research and correspondence with CDEs.

Economic impact data (by state) remains unchanged and goes through 2015, aligning with our most recent macroeconomic analysis of the program. Jobs include both full-time-equivalent permanent jobs, 12-month FTE construction jobs, direct, indirect, and induced jobs.

The fact sheets include a few other bells and whistles:

  • Multiple testimonials from businesses, nonprofits, local leaders, and community development organizations from each state.
  • A list of organizations who signed onto our November 2019 letter to Congress urging extension of the program.
  • Total project investment maps by county.

Click the states below for more information:

Two New Data Updates from the CDFI Fund

CDFI Fund Releases Applicant Demand from the 2019 NMTC Round

The Fund also announced it had received a total of 206 applications under the 2019 NMTC application round. The CDEs applying early this year were headquartered in 44 states, the District of Columbia, and Puerto Rico.

Applicants requested an aggregate total of $14.7 billion in NMTC allocation authority, over four times the $3.5 billion in authority available for the 2019 round.

CDFI Fund Releases NMTC Data Through FY 2017

The CDFI Fund has released another year of NMTC transaction data. The publicly available data now covers all transaction level activity through FY 2017.

The dataset includes information on the following data: Transaction ID, Project ID, 2010 Census Tract Metro/Non-Metro, 2000/2010, Origination Year, Community Development Entity (CDE) Name,  Project QLICI Amount, Estimated Total Project Cost, City, State, Zip Code, Purpose of Investment, QALICB Type, Multi-CDE, Multi-Tract QLICI. 

The latest year of data shows $3.7 billion in QLICIs made in 2017 generating $6.88 billion in total project financing. Total investment through 2017: $48.3 billion in QLICIs and $92.7 billion* in total project financing.

The Fund’s release also includes a summary report with breakdowns by industry classification code, year, and other factors.

*Note: This number represents NMTC investments reported through 2017. The Coalition’s dataset, which is used for many of the topline numbers in our fact sheets and reports, includes most NMTC data from 2018 and 2019, and the NMTC industry has eclipsed $100 billion in total project investment to date. We will be integrating this dataset into our own and updating our State Fact Sheets for our conference next month.

YMCAs & YWCAs: Tell Congress to Preserve the New Markets Tax Credit

The New Markets Tax Credit expires at the end of 2019. Without an extension, our hardest hit communities will lose one of the largest sources of financing for community facilities, healthcare clinics, and recreational facilities like YMCAs and YWCAs.

Please take a few seconds to sign your organization on to the NMTC Coalition’s letter to Congress calling for a permanent extension and expansion of the NMTC!

Statistics on YMCA/YWCA Financing

  • Through 2018, the NMTC financed the construction or expansion of 61 YMCAs and YWCAs in 28 states.
  • The NMTC has delivered $1.24 billion in financing to Ys in low-income communities.
  • NMTC-financed Ys provide services to 682,000 individuals in distressed neighborhoods.

Stories

Coal Street Community Facility

Coal Street Community Facility
Project City:
Wilkes-Barre
Project State:
PA
Project Year:
2011
The Coal Street project transformed a dilapidated 30-acre park into a regional sports and medical complex. Coal Street Park, located in WilkesBarre, Pennsylvania, was extensively rehabilitated, injecting new life into ...
Read More

The Blaisdell YMCA

The Blaisdell YMCA
Project City:
Minneapolis
Project State:
MN
Project Year:
2008
The Blaisdell YMCA in South Minneapolis, MN offers personal training, group exercise classes, swim lessons, child care and other great fitness and community building programs. Gym membership includes access to ...
Read More

Huntington Avenue YMCA

Huntington Avenue YMCA
Project City:
Boston
Project State:
MA
Project Year:
2012
MassDevelopment has issued a $10.8 million tax-exempt bond on behalf of the YMCA of Greater Boston, founded in 1851 as the country’s first Y. The Y will use bond proceeds ...
Read More

Linwood YMCA/James B. Nutter, Sr. Community Center

Linwood YMCA/James B. Nutter, Sr. Community Center
Project City:
Kansas City
Project State:
MO
Project Year:
2015
For over 50 years, the Linwood YMCA located at 3800 Linwood Avenue has focused on helping kids and families in the urban area surrounding the center. After a strategic planning ...
Read More

Lafayette YMCA

Lafayette YMCA
Project City:
Lafayette
Project State:
IN
Project Year:
2017
In 2017, ground was broken on a $28 million facility that will house a new Lafayette Family YMCA. The project also includes space for Junior Achievement, a Franciscan Health clinic ...
Read More

Bayview Hunters Point YMCA

Bayview Hunters Point YMCA
Project City:
San Francisco
Project State:
CA
Project Year:
2008
The San Francisco YMCA in secured $5 million in NMTC financing for the redevelopment of the Bayview YMCA in the Bayview district of San Francisco in 2008. The YMCA advances ...
Read More

Boys & Girls Club of the Wisconsin Rapids Area and the South Wood County YMCA/YWCA

Boys & Girls Club of the Wisconsin Rapids Area and the South Wood County YMCA/YWCA
Project City:
Wisconsin Rapids
Project State:
WI
Project Year:
2018
The center is envisioned as a 90,000 SF facility located in a severely distressed, non-metro, low income community. This project will transform a functionally obsolete and mostly vacant downtown mall ...
Read More

Mixed-Use with the Bowen YMCA

Mixed-Use with the Bowen YMCA
Project City:
Washington
Project State:
DC
Project Year:
2013
The Bowen YMCA began a redevelopment project to turn it's dilapidated building into a modern, mixed-use facility featuring 170 residential units, retail space and underground parking. The new center offers ...
Read More

The Gateway Family YMCA – Elizabeth Branch

The Gateway Family YMCA - Elizabeth Branch
Project City:
Elizabeth
Project State:
NJ
Project Year:
2011
The Elizabeth Branch impacts the community it serves by nurturing the potential of every child, teaching the importance of spirit, mind, and body to achieve a healthier lifestyle and supporting ...
Read More

Hornell YMCA

Hornell YMCA
Project City:
Hornell
Project State:
NY
Project Year:
2010
The new YMCA replaces the facilities of the 100-year-old Hornell Family YMCA, which plays a central role in the life of this city. The project nearly doubles the Y's current ...
Read More

Yakima YMCA

Yakima YMCA
Project City:
Yakima
Project State:
WA
Project Year:
2017
Yakima YMCA Association is constructing a new $20 million, 72,000 square foot YMCA facility in Yakima, Washington. The project will create living wage jobs and provide high quality programming to ...
Read More

Youngstown YMCA

Youngstown YMCA
Project City:
Youngstown
Project State:
OH
Project Year:
2016
Youngstown YMCA - The Youngstown YMCA renovated nearly 20,000 square feet of its 100 year old downtown Central YMCA creating modified spaces for continuing its transformational work in providing healthy ...
Read More

Everett YMCA

Everett YMCA
Project City:
Everett
Project State:
WA
Project Year:
2018
This project will support the development of a new multi-purpose YMCA community facility that will significantly expand its services and outreach in the low-income community it serves. The new YMCA ...
Read More

Atchison YMCA

Atchison YMCA
Project City:
Atchison
Project State:
KS
Project Year:
2016
Atchison, Kansas, approximately 45 minutes northwest of Kansas City, Missouri, is a rural community of 11,000 residents. Historically, Atchison County ranks as one of the unhealthiest in the State of ...
Read More

Marshfield Area YMCA

Marshfield Area YMCA
Project City:
Marshfield
Project State:
WI
Project Year:
2017
Cinnaire provided a $7.2 million New Market Tax Credit (NMTC) allocation to support the expansion and rehabilitation of the Marshfield Area YMCA. Forward Community Investments (FCI) is providing a $7.8 ...
Read More

Maryvale YMCA

Maryvale YMCA
Project City:
Phoenix
Project State:
AZ
Project Year:
2006
New 32,000 square foot YMCA facility ...
Read More

Southeast Raleigh YMCA

Southeast Raleigh YMCA
Project City:
Raleigh
Project State:
NC
Project Year:
2018
The Southeast Raleigh YMCA/Elementary School is the first phase of a 31-acre master planned site to improve access to education, wellness and fitness activities, and affordable housing in Raleigh, North ...
Read More

Xenia YMCA

Xenia YMCA
Project City:
Xenia
Project State:
OH
Project Year:
2017
New construction of a recreation, education, activity, community and health facility operated by the YMCA of Greater Dayton. The new Xenia YMCA facility is officially open to the public at ...
Read More

Clark County Family YMCA

Clark County Family YMCA
Project City:
Vancouver
Project State:
WA
Project Year:
2012
Vancouver is home to the only YMCA facility in the state of Washington, and its impressive outreach efforts currently touch over 14,000 people each year. The YMCA strengthens individuals and ...
Read More

Midway YMCA

Midway YMCA
Project City:
Saint Paul
Project State:
MN
Project Year:
2015
When you walk into the new Midway YMCA building, one thing stands out; if it weren’t for the uniforms and name tags, you would be hard-pressed to differentiate between the ...
Read More

Spokane Y

Spokane Y
Project City:
Spokane
Project State:
WA
Project Year:
2007
The Spokane Central Y (SCY) is a joint project between the YWCA of Spokane and the YMCA of the Inland Northwest. Together, they will build the nation's first shared YMCA ...
Read More

YMCA Fort Worth

YMCA Fort Worth
Project City:
Fort Worth
Project State:
TX
Project Year:
2017
NMTC financed development of a 35,000 sf community space for the McDonald Southeast YMCA. Included new construction of a full-service fitness center and early learning education center ...
Read More

Dow Bay Area Family YMCA

Dow Bay Area Family YMCA
Project City:
Bay City
Project State:
MI
Project Year:
2010
Construction of a 92,000 square foot YMCA that includes a large swimming pool, three multi-purpose fitness rooms, a child care center, two basketball courts, paddle-ball and racquetball courts and a ...
Read More

Pueblo YMCA

Pueblo YMCA
Project City:
Pueblo
Project State:
CO
Project Year:
2007
Construction of a 20,000 sq. ft. community facility for the YMCA in Pueblo, CO as part of a larger YMCA campus. The $17.82MM new facility includes a child development center ...
Read More

TWH WholeLife Center

TWH WholeLife Center
Project City:
Houston
Project State:
TX
Project Year:
2016
The Corporation for Supportive Housing (CSH), Capital One, and the City of Houston have partnered to provide financing for The Women's Home (TWH) Mabee WholeLife Service Center in Houston, using ...
Read More

Americana YMCA

Americana YMCA
Project City:
Zachary
Project State:
LA
Project Year:
2012
The Americana YMCA project was the construction of a 26,000 square foot community facility, with expansion capability of another 18,000 square feet, by the YMCA in Zachary, Louisiana. As a ...
Read More

Jackie Robinson Family YMCA

Jackie Robinson Family YMCA
Project City:
San Diego
Project State:
CA
Project Year:
2016
The Civic San Diego Economic Growth and Neighborhood Investment Fund provided a $23 million NMTC investment to help bridge a funding gap for the construction of the new approximately 44,000-square-foot, ...
Read More

Republic Bank Foundation YMCA

Republic Bank Foundation YMCA
Project City:
Louisville
Project State:
KY
Project Year:
2018
The Republic Bank Foundation YMCA will be a newly constructed 77,000 square foot multi-purpose facility to improve health equity in west Louisville, Kentucky. This joint venture will feature a new ...
Read More

Susquehanna Health and Innovation Center

Susquehanna Health and Innovation Center
Project City:
Williamsport
Project State:
PA
Project Year:
2014
The River Valley Regional YMCA sponsored the construction of a 62,000 SF community center to replace their former, obsolete, and inefficient Williamsport YMCA facility housed in eight interconnected buildings in ...
Read More

ExxonMobil YMCA

ExxonMobil YMCA
Project City:
Baton Rouge
Project State:
LA
Project Year:
2010
In September 2010 the ExxonMobil YMCA began construction on a 12,000 square foot facility located on 2.8 acres of land at Howell Place in North Baton Rouge, LA. The site, ...
Read More

YMCA of Southwest Indiana

YMCA of Southwest Indiana
Project City:
Evansville
Project State:
IN
Project Year:
2018
This project involves the construction of a new expanded YMCA building and the demolition of the existing YMCA building. It will bring much needed improvements for senior members and individuals ...
Read More

Tandy Family YMCA and Healthy Living Center

Tandy Family YMCA and Healthy Living Center
Project City:
Tulsa
Project State:
OK
Project Year:
2016
The Thornton Family YMCA has doubled its size to 92,000 square feet with a project made possible by the NMTC ...
Read More

Copley-Price Family YMCA

Copley-Price Family YMCA
Project City:
San Diego
Project State:
CA
Project Year:
2014
Copley-Price Family YMCA opened its doors to the public in 2014 and proudly serves one of the most diverse communities in San Diego, offering a supportive environment for people in ...
Read More

Chinatown YMCA

Chinatown YMCA
Project City:
San Francisco
Project State:
CA
Project Year:
2007
San Francisco YMCA in secured $17.5 million in NMTC financing for the redevelopment of the historic Chinatown YMCA in downtown San Francisco. The YMCA advances education achievement for youth and ...
Read More

Anderson Munger YMCA

Anderson Munger YMCA
Project City:
Los Angeles
Project State:
CA
Project Year:
2012
This project entailed the new construction of a YMCA health and fitness center (approximately 29,000 square feet) in the Koreatown neighborhood of the Wilshire Center District, a low-income community within ...
Read More

Bear Levin Studer Family YMCA

Bear Levin Studer Family YMCA
Project City:
Pensacola
Project State:
FL
Project Year:
2014
The NMTC financed the construction of a brand new YMCA. From the building's facade to the inside view after stepping into the lobby, it is immediately clear that the new ...
Read More

Thomas M. Menino YMCA

Thomas M. Menino YMCA
Project City:
Boston
Project State:
MA
Project Year:
2010
The historic Hyde Park YMCA (renamed Thomas M. Menino YMCA) officially re-opened in December 2010 after undergoing a major overhaul and expansion of the 107-year-old facility. MHIC’s $8.25 million in ...
Read More

YMCA Belle Chasse

YMCA Belle Chasse
Project City:
Belle Chasse
Project State:
LA
Project Year:
2009
New YMCA in an areas severely damaged by Hurricane Katrina ...
Read More

YMCA of Metropolitan Atlanta Leadership and Learning Center

YMCA of Metropolitan Atlanta Leadership and Learning Center
Project City:
Atlanta
Project State:
GA
Project Year:
2017
On the Westside, the YMCA of Metro Atlanta has created a one-of-a-kind, 55,000 sq. ft. Leadership & Learning Center that houses association support services, a state-of-the-art early learning center, and ...
Read More

Lynn YMCA

Lynn YMCA
Project City:
Lynn
Project State:
MA
Project Year:
2017
The Lynn Y project comprises the land acquisition and new construction of 64,000 SF state of the art recreational facility in the city of Lynn, MA for the YMCA of ...
Read More

The Greater Burlington YMCA Foundation, Inc.

The Greater Burlington YMCA Foundation, Inc.
Project City:
Burlington
Project State:
VT
Project Year:
2018
The construction of new YMCA in Burlington, VT will comprise a state-of-the-art 51,625 sf facility at an approximate project cost of $27.6 million. The new facility will resolve accessibility issues; ...
Read More

Warsaw YMCA

Warsaw YMCA
Project City:
Warsaw
Project State:
IN
Project Year:
2014
The project is a new state-of-the-art 72,000 SF Kosciusko County YMCA facility. The facility includes a health and wellness center, group exercise studios, a pool, teaching kitchen, and gathering/program spaces ...
Read More

YMCA Teen Center, Berkeley

YMCA Teen Center, Berkeley
Project City:
Berkeley
Project State:
CA
Project Year:
2009
With a focus on academic achievement, career preparation, service learning and leadership development, the YMCA Teen Center aims to empower high school age youth to develop the life skills and ...
Read More

YMCA of the Blue Water Area

YMCA of the Blue Water Area
Project City:
Port Huron
Project State:
MI
Project Year:
2008
The beautiful YMCA of the Blue Water Area is located at the corner of Third and Griswold Streets in downtown Port Huron ...
Read More

Sign-on to Preserve the NMTC

The New Markets Tax Credit (NMTC) expires on December 31, 2019. Tell Congress to preserve this community development tool by signing your organization onto the NMTC Coalition’s letter to congressional leadership.

The letter, which is addressed to Congressional leadership and the leaders of the tax committees, calls for a permanent extension of the NMTC and an expansion of credit authority. 

Please spread the word to your contacts in community development. Our goal is to get one-thousand organizations to sign on. The letter closes November 15, 2019, close of business.

World Habitat Day

Today, on World Habitat Day, we’re highlighting many of the Habitat for Humanity projects financed by the New Markets Tax Credit. The credit has supported thousands of affordable, single-family houses – often in areas recovering from disasters.

Omaha Habitat for Humanity

Nebraska-Habitat

Habitat for Humanity of St. Louis

Missouri-Habitat

The Housing Partnership Network Uses $40M in NMTC to close the gap between community development and affordable homes

In late 2016, the Housing Partnership Network (HPN) received $40M in NMTC to invest in revitalizing neighborhoods overrun with vacant and foreclosed properties. In a program known for its awardees’ focus on community, commercial and manufacturing facilities, HPN’s approach is less common. Developed in close partnership with Smith NMTC Associates, LLCit aims to bring to light the importance of homeownership in reviving the economies of struggling communities, also known as new or weak markets, throughout the US.

Habitat of Boston, Paterson, NJ, and Coastal Fairfield, CT

Morgan Stanley Volunteers at Paterson Habitat For Humanity’s 2017 Corporate Challenge on June 22th, 2017

Citi and Habitat for Humanity International have provided New Markets Tax Credit financing for three Habitat affiliates in Boston, Paterson, N.J., and Coastal Fairfield County, Conn. Over the next seven years, these Habitat affiliates will use the funding to collectively build and sell more than 30 homes to low-income families while providing them with financial education and support.

Financing Models

U.S. Bank helped develop a financing structure that has made homeownership possible for thousands of people

A decade ago, U.S. Bancorp Community Development Corporation (USBCDC) met with Habitat for Humanity International to develop a new markets tax credit (NMTC) financing structure that continues to serve as a model for the home construction and improvement work.

Financing Models

Smith NMTC’s Habitat for Humanity Financing Model

This unique program utilizes a model (NMTC Housing Model) that helps affordable for-sale housing developers increase development capacity using New Markets Tax Credits. Since 2008, Smith has structured and facilitated 28 closings with 15 different Community Development Entities (CDEs) totaling over $370 million.

The NMTC helped communities recover after Katrina.

Cincinnati Habitat for Humanity to build 38 homes with tax credits

Cincinnati Habitat for Humanity is one of 11 Habitat affiliates that will share $22 million in New Markets Tax Credits funding to help build 239 homes.

Three New Cosponsors on H.R. 1680

Last week, three members of Congress cosponsored the New Markets Tax Credit Extension Act of 2019 (H.R. 1680): Garrett Graves (R-LA), Andy Barr (R-KY), and David Price (D-NC). Below, I’ve highlighted of the NMTC projects in their districts.

Garrett Graves (R-LA)

Baton Rouge, LA

American Door and Hardware

The NMTC supported $1.47M in financing for a commercial door, frame, and hardware supplier.

Baton Rouge, LA

Moran Printing, Inc.

In 2010, Moran received NMTC financing. Since that investment, the company has grown substantially, and it now employs 132 people.

Napoleonville, LA

Game Equipment

GAME Equipment is an agricultural machinery manufacturer and distributor located in rural Louisiana. At a time when GAME needed additional funding for equipment purchases, its traditional lender refused to extend their line of credit. The New Markets financing provided the funding needed to maintain operations and retain 21 full-time employees. Since receiving the investment, GAME has hired an additional 19 employees.

Zachary, LA

Americana YMCA

The Americana YMCA project was the construction of a 26,000 square foot community facility, with expansion capability of another 18,000 square feet, by the YMCA in Zachary, Louisiana.

Destrehan, LA

Ochsner Health Center Destrehan

Destrehan offers Primary Care, Urology and OB/GYN services within the new Plantation View Medical Offices. From diagnostics to treatments, receive quality primary care, urology and women’s services from dependable, local providers.

Andy Barr (R-KY)

Berea, KY

Berea College Health and Sciences

This project was for a phase in the largest capital expenditure in Berea’s history. The Margaret Cargill Health and Sciences building is a 125,000 SF, four-story educational complex that will be a single central site for all forms of math, physics, chemistry, biology, sciences and health training.

Cynthiana, KY

EZ PACK

In 2014, Busicchia and his partners brought E-Z Pack and another truck manufacturer, Continental Mixers, under one roof in Cynthiana, KY. The previous owners were slated to move the E-Z Pack operation out of state, taking dozens of good jobs with it. An investment in connection with the New Markets Tax Credit program enabled the company to stabilize the two operations and begin critical turnaround efforts – bringing business expansion, jobs and opportunity to Cynthiana. .

Louisville, KY

Nucleus Innovation Center

The University of Louisville Foundation is constructing an eight-story, 202,510 gross square foot commercial office, information technology and laboratory building known as the Nucleus Innovation Center Building #1, the first of four buildings that will comprise the Nucleus Innovation Park Downtown in Louisville, KY. Upon completion, the building will be leased to innovative companies, both revenue generating and start-up, in the technology and healthcare industries. Louisville already has the world’s largest cluster of long-term care companies, and Nucleus will further enhance the city’s status as a national and international hub for the wellness and aging care industry.

David Price (D-NC)

Raleigh, NC

Wake Health Services

The construction of a new 35,000 square foot medical, dental, and pharmacy facility by Advance Community Health adjacent to its existing 13,100 SF Rock Quarry Health Clinic in Raleigh, NC. The project also includes the re-purposing of its existing Rock Quarry building into a centralized facility to house all of Wake’s administrative departments.

Raleigh, NC

Southeast Raleigh YMCA

The new, 114,959 square foot facility will be shared by the YMCA (42,960 SF) and the Wake County Public School System elementary school (71,999 SF). Community residents will be able to enjoy a state-of-the-art fitness and wellness center with amenities such as group exercise studios, an indoor track, a gym, outdoor pool, multi-purpose rooms, and sports fields. Future phases include a Low-Income Housing Tax Credit development and a mixed-use building with community serving tenants.

Hillsborough, NC

Weaver Street Market

Weaver Street Market is a large cooperatively-owned grocer that operates two stores in distressed areas in Carrboro and Chapel Hill (NC). NMTC financing supported the purchase and development of a third healthy food retail site, and to develop warehouse capacity that allowed the market to provide healthy, freshly-prepared foods to customers at all of its stores. Weaver Street invests in its local community by working with local farmers, seeking out Fair Trade products, supporting local producers and undertaking numerous environmental initiatives.

Raleigh, NC

Raleigh Times Building

One of Raleigh’s most important buildings in the first part of the 1900s, this building housed the Evening Times, which later became the Raleigh Times newspaper. Over the years, the Times building went through many changes. Empire Properties bought the building in 2002 and restored it to its former glory (based on 1910 photographs) with the help of the NMTC and Historic Tax Credit. In 2006, The Raleigh Times Bar opened on the first floor and was celebrated by many former Raleigh Times employees on opening night.

Early NMTC Projects

As part of our celebration of the 25th Anniversary of the CDFI Fund, we thought it would be interesting to highlight a few of the earliest NMTC projects.

Greyston Bakery

Greyston Bakery

Project City:
Yonkers
Project State:
NY
Project Year:
2004
Dia Beacon

Dia Beacon

Project City:
Beacon
Project State:
NY
Project Year:
2003
Centerstone of Florida

Centerstone of Florida

Project City:
Bradenton
Project State:
FL
Dalton Building Rehab

Dalton Building Rehab

Project City:
Rock Hill
Project State:
SC
Project Year:
2001
Whitnall Summit Place

Whitnall Summit Place

Project City:
West Allis
Project State:
WI
Project Year:
2004
Wheeling Stamping Building

Wheeling Stamping Building

Project City:
Wheeling
Project State:
WV
Project Year:
2002
The Armory - Gerding Theater

The Armory – Gerding Theater

Project City:
Portland
Project State:
OR
Project Year:
2004
Portland Telegram

Portland Telegram

Project City:
Portland
Project State:
OR
Project Year:
2004
Plaza Verde

Plaza Verde

Project City:
Minneapolis
Project State:
MN
Project Year:
2004
Omaha Standard

Omaha Standard

Project City:
Council Bluffs
Project State:
IA
Project Year:
2005
Palmer Warren Project

Palmer Warren Project

Project City:
Boston
Project State:
MA
Project Year:
2004
Masonic Temple

Masonic Temple

Project City:
Baltimore
Project State:
MD
Project Year:
2005
Casper Fire Station

Casper Fire Station

Project City:
Casper
Project State:
WY
Project Year:
2004
Bentley Project

Bentley Project

Project City:
Phoenix
Project State:
AZ
Project Year:
2005
Albers Mill

Albers Mill

Project City:
Tacoma
Project State:
WA
Project Year:
2004
33 East Main Street

33 East Main Street

Project City:
Madison
Project State:
WI
Project Year:
2004
200 Carondelet

200 Carondelet

Project City:
New Orleans
Project State:
LA
Project Year:
2005
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