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.

NMTC: Unprecedented Economic Development Tool for Low-Income Communities Hangs in the Balance

Guest post by Kermit Billups, Greenline Ventures

The New Markets Tax Credit (NMTC) is one of the most efficient community economic development tools for low-income communities that I have encountered in my 35 years of investment banking. I currently have the privilege of serving as the President of the NMTC Coalition, a national membership organization founded in 1998 to advocate on behalf of the NMTC program.

The NMTC has leveraged an unprecedented level of investment to both rural and urban low-income communities, generating over $90 billion in total capital investment through public-private partnerships and creating more than one million jobs.

Having been born and raised in Baltimore, I’ve had the opportunity to see the difference the NMTC can make in communities and in the lives of community members. NMTC projects in my city have helped tackle tough challenges like the repurposing and cleanup of abandoned industrial buildings.

The NMTC helped attract nearly $2 billion dollars of private sector financing toward the redevelopment of 88 acres of former industrial land into new and rehabilitated affordable and mixed-income housing, the first new school built in Baltimore in 30 years, a life sciences and technology park, modern manufacturing space, retail space, and more than 8,000 new jobs.

Howard Park is another great example of the New Markets Tax Credits’ ability to create an economic and community transformation. It helped bring one of the first full-service grocery stores to the community in over a decade and created 250 jobs, many of which were filled by neighborhood residents.

New Orleans, post Hurricane Katrina, is another place where I’ve seen the credit’s transformative power.  My family is originally from the Crescent City and I spent a good deal of time there growing up. The devastation following the hurricane was personal, and I was pleased to see my fellow NMTC practitioners working to revitalize the neighborhoods and businesses in the months and years following the disaster. The credit was impactful in New Orleans – from rebuilding the Holy Cross School, a historic school in the 9th ward, building hundreds of houses for residents, and investing in local businesses, to the construction and expansion of St. Thomas Community Health Center after the closure of five major hospitals, which serves over 21,000 patients annually.

The NMTC has an outstanding track record of revitalizing some of the poorest, most disinvested communities in our country—and it has the potential to achieve even greater success. NMTC practitioners, like myself and my colleagues at Greenline Ventures, are always looking for new and innovative ways to serve and invest in distressed communities. One use that has the potential to make huge impacts is the financing of small businesses through NMTC supported loan funds.

In January 2019, Greenline Ventures launched its second Small Business Capital Fund to deliver much-needed financing to underserved businesses nationwide. The fund provides flexible loans between $250,000 and $2,500,000 to small businesses creating positive economic and social outcomes in their communities. Our objectives for this endeavor include quality job creation, job training program support, increased minority and women-ownership, sustainable environmental impacts and other forms of assistance to low-income workers. Think Broccoli, a minority-owned urban social enterprise located in Baltimore, which organizes social impact campaigns and events to help mobilize and educate impacted communities, is a perfect example of that work.

We aren’t alone is this work to increase NMTC financing opportunities for small businesses. In fact, the 2019 NMTC Progress Report, an annual publication documenting the impact of the NMTC nationwide, found that at least 80 projects financed in 2018 were financed through a small loan pool, which is nearly one-third of the total projects for the year.   

It is clear that the NMTC has the potential to continue on its successful path of growing businesses, sustaining local economies, creating jobs and expanding community services. Congressional action is needed to ensure the future of this essential tool for community revitalization. With just a few months remaining before the current NMTC authorization expires, communities, practitioners, and legislators must work together to secure this important resource and continue supporting our underserved communities.

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.

Golden Belt Complex

Golden Belt Complex

Project City:
Durham
Project State:
NC
Project Year:
2002
Dia Beacon

Dia Beacon

Project City:
Beacon
Project State:
NY
Project Year:
2003
Palmer Warren Project

Palmer Warren Project

Project City:
Boston
Project State:
MA
Project Year:
2004
Plaza Verde

Plaza Verde

Project City:
Minneapolis
Project State:
MN
Project Year:
2004
Albers Mill

Albers Mill

Project City:
Takoma
Project State:
WA
Project Year:
2004
Whitnall Summit Place

Whitnall Summit Place

Project City:
West Allis
Project State:
WI
Project Year:
2004
Villager Mall

Villager Mall

Project City:
Madison
Project State:
WI
Project Year:
2004
Greyston Bakery

Greyston Bakery

Project City:
Yonkers
Project State:
NY
Project Year:
2004
Envirotech

Envirotech

Project City:
Anchorage
Project State:
AK
Project Year:
2004
Dalton Building Rehab

Dalton Building Rehab

Project City:
Rock Hill
Project State:
SC
Project Year:
2001
Hibernian Hall Project

Hibernian Hall Project

Project City:
Boston
Project State:
MA
Project Year:
2004
The Armory - Gerding Theater

The Armory – Gerding Theater

Project City:
Portland
Project State:
OR
Project Year:
2004
Tennessee Theater

Tennessee Theater

Project City:
Knoxville
Project State:
TN
Project Year:
2004
Hippodrome Theater

Hippodrome Theater

Project City:
Baltimore
Project State:
MD
Project Year:
2002
33 East Main Street

33 East Main Street

Project City:
Madison
Project State:
WI
Project Year:
2004
HCI Construction

HCI Construction

Project City:
New Orleans
Project State:
LA
Project Year:
2003
Wheeling Stamping Building

Wheeling Stamping Building

Project City:
Wheeling
Project State:
WV
Project Year:
2002
Portland Telegram

Portland Telegram

Project City:
Portland
Project State:
OR
Project Year:
2004
Casper Fire Station

Casper Fire Station

Project City:
Casper
Project State:
WY
Project Year:
2004
Old Post Office

Old Post Office

Project City:
St. Louis
Project State:
MO
Project Year:
2004

Celebrating the CDFI Fund’s 25th Anniversary

The CDFI Fund was authorized by Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. The act created a new agency providing funding to individual CDFIs and their partners through a competitive application process. Several years later, the New Markets Tax Credit was authorized as part of the Community Renewal Tax Relief Act of 2000.

Today, the CDFI Fund manages a half dozen programs. CDFI Fund awardees and allocatees deliver over $10 billion dollars of annual community development activity benefiting low-income communities and families.

Please join the NMTC Coalition in celebrating 25 years of the CDFI Fund. Use the hashtag #CDFIFund25 on social media and share your best CDFI Fund stories.

NMTC Projects in GA-05

The NMTC has delivered over $1 billion in financing to 40 community development projects in Georgia’s Fifth Congressional District, represented by Civil Rights legend John Lewis. We thought we would take a moment and highlight a few.

Chris 180 Center of Excellence

This project consists of several components: new construction of a building which will allow CHRIS 180 to expand its behavioral health clinical training program; renovations at an existing drop-in facility to integrate primary medical and dental services; and the acquisition and rehabilitation of five houses which provide a supportive, therapeutic family environment for children while preparing for adoption.

Atlanta Community Food Bank

Construction of a new 345,000 SF warehouse and distribution facility in EastPoint, GA. The expansion is projected to increase their distribution of food tolow income communities by 100%. The new facility is strategically located to improve logistics and supply chain management to meet the needs of individuals facing food insecurity in the 29 counties served.

Atlanta Neighborhood Development Partnership

John O’Callaghan, CEO of Atlanta Neighborhood Development Partnership, saw the opportunity to leverage NMTC dollars as a path to providing a new way of revitalizing communities. “Now that the doors have been opened with New Markets, the plan is to transform neighborhoods through single family homeownership and prove it can be done at increased scale. Success will help ANDP, HPN members and other effective nonprofits to leverage and expand capital to transform more neighborhoods and help more families succeed.”


Moving in the Spirit – Space to Soar

The project involves acquisition and construction of a 21,500 square foot transit oriented development of a nonprofit arts organization. The facility (“Space to Soar”) will include a variety of spaces tailored to the programmatic needs of the organization. The project allows Moving in the Spirit to double its capacity to serve 500 youth annually through dance classes and workshops. Space to Soar also provides work space for human services agencies focused on workforce development training and placement.

Groundbreaking ceremony

Quest Nonprofit Center for Change

The project involves the construction of a 26,000 square foot Quest Nonprofit Center for Change that will house community and commercial services. Over the past 15 years, Quest has provided extensive housing services to homeless and low-income men and women, but is now expanding their focus to a broader set of challenges facing Atlanta’s Westside neighborhood.

Image result for quest nonprofit center for change

Responsive Surface Technology

Responsive Surface Technology, an Atlanta-based Smart Bed and sleep technology innovator,  received NMTC financing to expand its marketing and research efforts, and also help it open its first company-owned store in West Midtown.


Grady Memorial Hospital – Women and Infant’s Center 

Renovation of 70,693 SF Women’s and Infant’s Center of Grady Hospital in Atlanta, GA. Phased renovation of the Second Floor Women Clinics including the Teen Clinic, Prenatal Clinic, Centering Rooms, and Perinatal Center with ultrasound and urodynamics procedure rooms at Grady’s Women and Infant’s Health Clinic.

Cristo Rey Atlanta High School 

New high school facility for Cristo Rey Atlanta, a private Catholic college preparatory high school serving low-income students.

Image result for cristo rey atlanta high school

Pittsburgh Yards 

In 2017, a $6,500,000 NMTC transaction allocated funds to finance the first phase of development of a business incubator for small businesses in the Pittsburgh neighborhood of Atlanta. Previously a 31-acre industrial site, the vision of this project is to develop an economic catalyst in an area where living-wage jobs and economic opportunities are scarce.

Image result for pittsburgh yards

YMCA of Metropolitan Atlanta Leadership and Learning Center

YMCA of Metro Atlanta, SunTrust Community Capital and MBS Urban Initiatives CDE have closed the financing for the organization’s new headquarters. The 54,400-square-foot building, known as the YMCA Center for Leadership and Learning, will be located in Atlanta’s Westside. The center will house YMCA of Metro Atlanta’s administrative offices and other functions including a training center for 4,000 regional staff.

Families First Headquarters 

An $8.5 million investment to convert a former Atlanta Public Schools building in Atlanta’s Westside into the organization’s new 38,000 square-foot headquarters.

Sheltering Arms Atlanta 

Sheltering Arms, an Atlanta-based nonprofit agency that provides early childhood education, has opened a 27,000-square-foot center at the Barack and Michelle Obama Academy (formerly D.H. Stanton Elementary School) in Peoplestown after raising $8.4 million from the NMTC.


Microsoft Innovation Center and Women’s Entrepreneurship Center

Renovation of a historic Atlanta landmark (the Flatiron Building) into an entrepreneurship hub and innovation center.

Grady Health Emergency Room

An $8.5 million investment to convert a former Atlanta Public Schools building in Atlanta’s Westside into the organization’s new 38,000 square-foot headquarters.


Aerotropolis Atlanta 

Aerotropolis-Atlanta

Dean Rusk YMCA Head Start Academy

Dean Rusk YMCA Head Start Academy is a child care learning center facility which provides day care services for all children. Children who experience quality early education and child care in Dean Rusk YMCA Head Start Academy in the city of Atlanta receive long term benefits. They have better math, language and social skills as they enter school, and, as they grow older in the county of Fulton, state of Georgia, they will require less special education and will progress further in school. This day care is located in the Atlanta in the county of Fulton, in the state of GA. Several research studies have found that high quality child/day care centers have common characteristics, specially near Atlanta.

Project Community Connections Inc

Project Community Connections, Inc. (PCCI) is a non-profit organization that builds relationships with property owners, government agencies, and community organizations to help clients become self-sufficient, so they can remain stably housed and thrive in all aspects of their lives.

Image result for Project Community Connections Inc

NMTC Coalition Releases 2019 NMTC Progress Report

The 15th edition of the NMTC Progress Report shows the NMTC continues to grow businesses and create jobs in rural and urban communities left outside the economic mainstream. 

FOR IMMEDIATE RELEASE — WASHINGTON, D.C. (July 18, 2019) —The New Markets Tax Credit Coalition today released its 2019 New Markets Tax Credit (NMTC) Progress Report, the fifteenth edition of the report—providing analysis of NMTC activities in 2018. The report documents the importance of the NMTC in providing patient, flexible capital to businesses and projects located in distressed rural and urban communities, thereby  creating  jobs and growing business opportunities. The NMTC financing ranges from more traditional industry and community sectors to new and cutting-edge technology. Projects and businesses that benefited from the Credit in the past year include manufacturing, healthcare, schools and many supporting childcare, youth, and families.  

“The Coalition’s annual survey asks CDEs to report on the deployment of their allocation, investor trends, and a variety of community impact metrics,” said Coalition spokesperson Bob Rapoza. “The findings clearly demonstrate that the NMTC continues to deliver capital to the communities left behind by the changing economy, with nearly 80 percent of the activity in severely distressed U.S. census tracts in the last year—far exceeding statutory requirements. Moreover, the Credit is delivering a significant ‘bang for the buck’ for taxpayers in terms of the jobs, amenities, community facilities, and tax revenue.”   

The report was prepared for the NMTC Coalition, a national membership organization of Community Development Entities (CDEs) and investors organized to advocate on behalf of the NMTC. Every year since 2005, the NMTC Coalition surveys CDEs on their work delivering billions of dollars to businesses, creating jobs, and rejuvenating the parts of the country that have been left behind. The annual NMTC Progress Report presents the findings of the CDE survey and provides policymakers and practitioners with the latest trends and successes of the NMTC.

The 2019 Progress Report

Seventy-four CDEs participated in the 2019 survey and provided data on their progress raising capital, lending, and investing in 2018 with the NMTC. The survey findings show that competition for credits continues to drive gains in efficiency.  The data collected shows that CDEs used $3.2 billion in NMTC allocation in 2018 to financed 286 NMTC projects, amounting to $6.1 billion in total project investment to low-income communities. This financing resulted in the creation of 58,360 total jobs including 32,917 permanent full-time-equivalent jobs and 25,443 construction jobs.

“Year after year, the data shows the NMTC not only delivers an unprecedented level of capital to low-income rural and urban communities, but it creates much-needed jobs—helping individuals and families thrive and, in turn, grows those local economies where they live and work. In fact, since 2003 the NMTC has created over one million jobs,” Rapoza adds.

Across 48 states and territories, CDEs rehabilitated or constructed 18.9 million square feet of space in 2018, thanks to NMTC financing. NMTC financing supported 193 manufacturing and industrial businesses with loans for working capital, new equipment, and 6.7 million sq. ft. of new space, often through incubators and multi-business facilities, creating over 12,000 manufacturing jobs.

Furthermore, there were four million people served by NMTC-financed community facilities including 445,000 patients in healthcare facilities and 460,000 children. Sixty-six percent of mixed use (?) projects included at least one community facility, nonprofit, or social service component. Those new community resources add up to 249 nonprofits facilities, health centers, childcare centers, libraries, community centers, and other community facilities.  The report profiles NMTC financed businesses, including a rural apparel manufacturer in Pagosa Springs, CO, a new Educare facility in Springfield, MA, and a Boys and Girls Club in Manatee County, FL, and it describes the impact of the NMTC in native communities in 2018.

Rapoza notes, “The authorization for the NMTC expires this year. This report is further proof that the Credit is working and Congress should expand and make the NMTC permanent.”

There is currently legislation in Congress aimed at making the NMTC permanent, The NMTC Extension Act of 2019, H.R. 1680 in the House and S. 750 in the Senate. There are presently 30 Senators signed on in support of S. 750, which was introduced by Senators Roy Blunt (R-MO) and Ben Cardin (D-MD). H.R. 1680 has 91 cosponsors, and is led by Reps. Terri Sewell (D-AL) and Tom Reed (R-NY).


About New Markets Tax Credit Program The New Markets Tax Credit was enacted in 2000 in the Community Renewal Tax Relief Act (P.L.106-554) in an effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities. More than $95 billion in capital has been put to work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico.