New Markets Tax Credit Coalition https://nmtccoalition.org Supporting the New Markets Tax Credit Tue, 14 Apr 2020 20:38:31 +0000 en-US hourly 1 https://nmtccoalition.org/wp-content/uploads/cropped-New-Markets-Tax-Credit-Coalition-square-1-32x32.png New Markets Tax Credit Coalition https://nmtccoalition.org 32 32 NMTC Coalition Coronavirus Recovery Proposal https://nmtccoalition.org/2020/03/20/nmtc-coalition-coronavirus-recovery-proposal/ Fri, 20 Mar 2020 16:29:17 +0000 https://nmtccoalition.org/?p=22599 Congress has an opportunity to provide resources to vulnerable, low-income communities dealing with the impact of the Coronavirus. It is clear that the pandemic will wreak havoc on local economies and low-income rural and urban communities will be the hardest hit. 

These are the very communities that have benefited the most from the New Markets Tax Credit (NMTC).  Through Sept. 2019, the NMTC delivered over $100 billion[1] total project financing to over 6,000 projects in areas of deep distress. In 2018, eighty percent of NMTC activity is in areas of extreme poverty and unemployment that far exceed the statutory requirements for economic distress. The NMTC – and the organizations that use it to deploy capital to underserved communities – is well-suited for the sort of disaster relief and economic stabilization needed when the virus fades.

Emergency Extension and Expansion of the NMTC

  1. Congress should permanently extend the NMTC along the lines of the NMTC Extension Act of 2019, which provides $5B in annual authority, an inflation adjustment in out years, and relief from the AMT consideration for NMTC investors.
  2. The CDFI Fund is currently evaluating the 2019 application round with awards scheduled for the summer. Congress should provide an emergency NMTC allocation of $1 billion to be added to the pending 2019 round (for a total of $4.5 billion). The CDFI Fund can administer the emergency round using existing applications and a supplemental questionnaire, a procedure they used when Congress provided an emergency NMTC authorization for the GO-ZONES in 2005. 
  3. Congress should help communities rebound by providing an additional NMTC allocation $1.5 billion to be added to the 2020 round (for a total of $6.5 billion for 2020), and $1 billion to the 2021 round (for a total of $6 billion for 2021).
  4. Congress should provide Community Development Entities with temporary relief from Treasury regulation § 1.1001-3 (Modifications of debt instruments), which would help them provide flexibility to borrowers to help them through the crisis.

The NMTC industry has proven it can quickly deliver $7 billion in annual allocation to businesses and revitalization projects. Because of a delay in reauthorization, the CDFI Fund combined the 2015 and 2016 rounds and awarded $7B. It only took CDEs eighteen months after signing their award agreements for community development organizations to deploy $7 billion to health clinics, manufacturing expansions, and small businesses.

While the proposed emergency allocation would be generally available to help communities meet a wide variety of needs, it is important to note NMTC’s track record in two particular areas of concern in the current environment: economic stabilization and healthcare financing.

Healthcare

The healthcare system in low-income communities is the least prepared to deal with the fallout from the Coronavirus. As the disease overwhelms Intensive Care Units (ICUs) and increasingly monopolizes the resources of hospitals and testing overwhelms primary care physicians, the entire healthcare system could be stressed to its limit. The need will extend beyond ventilators and upgraded ICUs to basic healthcare equipment and infrastructure. Without additional healthcare capacity, doctors will be forced to put-off treatments for extended periods. When the pandemic recedes, health systems will be overwhelmed with demand for treatment, surgeries, and procedures postponed during the height of the crisis. This is particularly the case in high-poverty areas already struggling with poor health outcomes and inadequate facilities.

Congress can act now to help distressed communities meet the oncoming tsunami of demand by providing additional resources to community development organizations through the NMTC.

NMTC Track Record on FQHCs: The NMTC is one of the most important sources of funding for the financing and equipping of FQHCs. To date, over $3.9 billion in NMTC investments have supported the financing of 361 FQHC projects serving over 7.2 million patients in low-income communities.

Healthcare Stores:

Economic Stabilization

When economic calamity strikes, commercial credit markets freeze, philanthropy tightens, and state and local tax revenue collapses. All of these counter-cyclical forces combine to exacerbate recessions. During the early stages of the Great Recession, Congress took a variety of actions to help capital starved communities access the resources they desperately needed. This included an authorization of an additional $1.5 billion in NMTC allocation for 2009 and 2010 to help more communities access financing to keep businesses open and support critical components of the social-safety net, including health centers, homeless shelters, and other community facilities.

NMTC Track Record After the Great Recession: The NMTC delivered $23.6 billion in total project financing over 1,2000 projects in hard hit communities between 2009 and 2011. Those investments directly created or retained 85,000 permanent jobs and 94,000 construction jobs at a time when the economy was in a freefall.

[1] NMTC Coalition analysis of CDFI Fund data (2003-2016), its annual survey of CDEs (2017-2018), and OCC data (2018-2019).

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Baltimore’s Lexington Market Groundbreaking https://nmtccoalition.org/2020/02/18/baltimores-lexington-market-groundbreaking/ Tue, 18 Feb 2020 20:52:14 +0000 https://nmtccoalition.org/?p=22504

Today, officials in Baltimore attended a groundbreaking for the Lexington Market rejuvenation project. Cinnaire provided $11 million in NMTC financing to support the revitalization of the historic Baltimore market. The 238-year old structure will undergo a $40 million transformation to create a modern gathering place for all of Baltimore and a hub for community, culture, health, and wealth-building. Cinnaire Lending and Enterprise Community Loan Fund partnered to provide a $6.7 million loan to facilitate the NMTC financing.

Some highlights via Twitter:

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JCT Report Highlights NMTC infrastructure Investment https://nmtccoalition.org/2020/01/28/jct-report-highlights-nmtc-infrastructure-investment/ Tue, 28 Jan 2020 14:53:27 +0000 https://nmtccoalition.org/?p=22427 Read more]]> Yesterday, the Joint Committee on Taxation released “OVERVIEW OF SELECTED PROVISIONS AND OPTIONS RELATING TO FUNDING AND FINANCING INFRASTRUCTURE INVESTMENTS.” The report highlights tax provisions employed for the financing of infrastructure. With the help of CDFI Fund data, the committee was able to identify 171 infrastructure projects financed by the NMTC totaling over $2 billion.

Below, we’ve highlighed a few examples.

Ports and Freight

Industrial waterfront property and long-neglected ports are often the most distressed and environmentally contaminated areas of an urban core. Municipal governments and Port Authorities have used the NMTC for brownfield remediation and to rejuvenate ports, freight terminals, and fishing docks.

Yonkers Pier

Yonkers Pier
Project City:
Yonkers
Project State:
NY
Project Year:
2008
The Yonkers Pier is the only turn-of-the 20th century pier still in use on the Hudson River. The restoration of the Pier is another milestone in the remarkable renewal of ...
Read More

Port of Hueneme

Port of Hueneme
Project City:
Port Hueneme
Project State:
CA
Project Year:
2013
The modernization of the Port of Hueneme retained $7 billion in trade business and 500 livable wage jobs. Clearinghouse CDFI provided $10 million of NMTC allocation for this $14.7 million ...
Read More

America’s Central Port Complex

America’s Central Port Complex
Project City:
Madison
Project State:
IL
Project Year:
2015
The project includes million square feet of new, rail-served manufacturing and warehousing space in the industrial development along the Mississippi River’s Chain of Rocks shipping canal. The warehouse project is ...
Read More
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Broadband

Many rural communities still lack access to high-speed broadband connections. Increasingly, the NMTC has been used to finance broadband expansions into underserved and remote rural areas.

Continental Divide Electric Cooperative Broadband Project

Continental Divide Electric Cooperative Broadband Project
Project City:
Grants
Project State:
NM
Project Year:
2017
Currently, residents and owners of approximately 24,000 homes and business in Grants and the surrounding area have no broadband internet option and rely on satellite internet, the speed of which ...
Read More

Greatwave Communications

Greatwave Communications
Project City:
Cleveland
Project State:
OH
Project Year:
2016
GreatWave Communications is a long-standing operating business located in Conneaut, Ohio that provides high-quality telecommunications services to over 2,000 telephone customers, 1,650 cable television subscribers, and 3,200 broadband internet users ...
Read More

Terra NW

Terra NW
Project City:
Anchorage
Project State:
AK
Project Year:
2011
Installation & Operation of Fiber-Optic & Microwave Broadband Connection: GCI is the largest integrated telecom company in Alaska, having provided cellular service to over 100 rural communities in the past ...
Read More

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New Markets Tax Credit Receives One-Year, $5 Billion Extension https://nmtccoalition.org/2019/12/20/new-markets-tax-credit-receives-one-year-5-billion-extension/ Fri, 20 Dec 2019 21:30:00 +0000 https://nmtccoalition.org/?p=22219 Read more]]> Contact: Ayrianne Parks, ayrianne@rapoza.org, (202) 393-5225

Spending Bill Expected to be Signed Into Law Today Authorizes $1.5 Billion Increase in Allocation

WASHINGTON, D.C. (December 20, 2019) – The Fiscal Year 2020 appropriations bill , H.R. 1865, which will signed into law today by President Trump, includes a one-year, $5 billion extension of the New Markets Tax Credit (NMTC). The NMTC, which faced expiration on December 31, instead received a $1.5 billion increase in allocation that will go far to meet the demand for this important resource that revitalizes communities, creates jobs, increases economic opportunity and improves lives. 

The projected impact of $5 billion in New Markets Tax Credits includes an estimated 138 manufacturing and industrial projects, 55 mixed-use projects, 51 health care projects and 115 community facility projects. It will also generate an estimated 118,000 jobs.

Established in 2000 in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. Since then, the New Markets Tax Credit has financed more than 6,000 projects and created over one million jobs in all 50 states, the District of Columbia and Puerto Rico. The NMTC was provided a five-year authorization in The PATH Act. (P.L. 114-113) in December 2015.

“As we celebrate the 20th anniversary of the New Markets Tax Credit in 2020, this extension and additional allocation for the next year is vital for many of America’s urban neighborhoods and rural communities, providing access to billions of dollars for high-impact, community revitalization projects,” said Bob Rapoza, spokesperson for the NMTC Coalition. “No other the federal tax incentive is generally available to economically distressed rural and urban communities to promote economic revitalization. We appreciate our champions in Congress who worked to introduce the extension into the spending package, including Sens. Roy Blunt (R-MO) and Ben Cardin (D-MD) and Reps. Terri Sewell (D-AL), Tom Reed (R-NY), who introduced legislation last February to make the NMTC permanent.  We also are grateful to Ways and Means Committee Chairman Richard Neal (D-MA) who is a longtime supporter of NMTC.”

The NMTC works by providing a shallow federal tax credit of 39 percent, taken over seven years, for investments made in census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median. In 2019, more than 80 percent of all NMTC investments were in communities exhibiting severe economic distress with extremely low-incomes, high unemployment, or high poverty.

“The NMTC, despite its impressive track record in revitalizing communities, has been set at $3.5 billion since 2007, resulting in a 30 percent decrease in buying power. The $5 billion authorization is not only an increase above the current rate for NMTC from $3.5 billion, but also an increase above inflation of over $500 million,” adds Rapoza. “This much needed increase will go far to meet the exceptionally high demand, with is four to five times the availability on average.”

The Coalition notes that communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since its inception, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream.

For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s State Impact Map or check out its Project Database.

About New Markets Tax Credit Program

The New Markets Tax Credit (NMTC) was enacted in 2000 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. Since its inception, the NMTC has generated more than one million jobs. Today due to NMTC, more than $100 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.

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$5 Billion in NMTC Authority included in Tax Deal https://nmtccoalition.org/2019/12/17/5-billion-in-nmtc-authority-included-in-tax-deal/ Tue, 17 Dec 2019 15:02:20 +0000 https://nmtccoalition.org/?p=21862 Read more]]> Overnight, congressional negotiators reached a deal on expired tax provisions that would provide a one-year New Markets Tax Credit extension at an allocation level of $5 billion for 2020. The legislation is expected to pass the House and Senate by the end of the week.

The Coalition put together a video with our projections on the impact:

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Tax Policy Trends and Plans for 2020 Were Focus for Lawmakers, Community Development Leaders at Annual D.C. Policy Conference https://nmtccoalition.org/2019/12/16/tax-policy-trends-and-plans-for-2020-were-focus-for-lawmakers-community-development-leaders-at-annual-d-c-policy-conference/ Mon, 16 Dec 2019 18:26:00 +0000 https://nmtccoalition.org/?p=21915 Read more]]> Coalition gathers NMTC stakeholders, releases state statistics

WASHINGTON, Dec. 16, 2019 /PRNewswire/ — New Markets Tax Credit extension legislation, tax policy trends and plans for 2020 were the focus as the New Markets Tax Credit (NMTC) Coalition held its annual NMTC Policy Conference late last week in Washington, D.C. The two-day event featured several members of Congress as keynote speakers, included visits with Congressional offices on Capitol Hill and provided insights from the Treasury Department. Attendees also received updated state fact sheets on the NMTC’s efficacy.

NMTC Coalition President, Kermit Billups, kicked off the conference by welcoming speakers and guests alike. The experienced NMTC practitioner and Greenline Ventures Executive Vice President highlighted recent successes and looked to the future of the NMTC Coalition.

Keynote speakers included Comptroller of the Currency Joseph Otting and CDFI Fund Director Jodie Harris. Panelists included congressional staff, NMTC board and leadership, economic development experts and Treasury Department professionals. Panels held discussions on modernization of the Community Reinvestment Act, small business loan funds, and the latest insights from the Treasury Department. A legislative outlook panel was led by moderator Bob Rapoza, NMTC Coalition spokesman.

A key focus of the conference was the expiration of NMTC. At the end of the year, the Credit expires, and the Coalition has been working with Congress on the legislation to extend and expand the NMTC.  In November, nearly 1,000 organizations wrote to the Congressional leadership in support of extension legislation.

Attendees brought their message to the Hill for Congressional visits before settling into the Hart Senate Office Building where they were addressed by Senator Roy Blunt (R-MO), Senator Ben Cardin (D-MD) and Ways and Means Committee Chairman, Representative Richard Neal (D-MA) who discussed NMTC and the future of tax policy.

“We [Congress] have to buckle down and get things done,” said Sen. Blunt, noting that he is working with fellow NMTC bill cosponsor Sen. Cardin and members of the Senate Finance Committee on an extension for the NMTC in the year-end negotiations. He went on to discuss his firsthand experience seeing the NMTC at work. “I went to a grocery store opening in south St. Louis—it was the first grocery store in 50 years, and the NMTC provided the financing.”

“You can’t allow it to expire,” said Sen. Cardin, when addressing the group and noting the chilling impact already seen due to uncertainty over the extension of the NMTC. “Permanency allows you to be able to go out and put together these deals that are not easy to be put together. There is a real desire by both the Democratic and Republican leadership to make sure that an extender package, in fact, passes before the end of the year. We are going to keep fighting for as much as we can get,” he added.

“[The NMTC] has real, positive ramifications for the communities in which you make the investment,” said Chairman Neal as he talked about “why we need to preserve and expand the New Market Tax Credit initiative. I’ve been your champion and I’m going to continue to be your champion,” he added.

The NMTC Coalition also released updated state fact sheets with community testimonials, success stories and state statistics available here.

“Since it was established in 2000, the New Markets Tax Credit has financed more than 6,000 projects and created over one million jobs in all 50 states, the District of Columbia and Puerto Rico,” said Bob Rapoza. “The conference provided practitioners with opportunities to discuss ways to build upon its success, helping low-income rural and urban communities access the capital necessary to grow local economies, expand business opportunities, update worn infrastructure, and make needed services like healthcare, education and childcare available to individuals and families living in distressed areas.”

About New Markets Tax Credit Program

The New Markets Tax Credit (NMTC) was enacted in 2000 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. Since its inception, the NMTC has generated more than one million jobs. Today due to NMTC, more than $95 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.

Contact: Ayrianne Parks
ayrianne@rapoza.org 
(202) 393-5225

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CRA Modernization Proposal Released https://nmtccoalition.org/2019/12/13/cra-modernization-proposal-released/ Fri, 13 Dec 2019 15:14:52 +0000 https://nmtccoalition.org/?p=21798 Read more]]> 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)

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CRA Modernization Proposal Coming Soon https://nmtccoalition.org/2019/12/11/cra-modernization-proposal-coming-soon/ Wed, 11 Dec 2019 15:48:41 +0000 https://nmtccoalition.org/?p=21789 With the OCC set to release a proposal to modernize CRA rules and the FDIC set to vote on it tomorrow, we thought we’d repost our comment letter in response to the framework offered up last year.

CRA-Comment-Letter-NMTC-Coalition-Final

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New State Fact Sheets https://nmtccoalition.org/2019/12/10/new-state-fact-sheets-2/ Tue, 10 Dec 2019 15:53:28 +0000 https://nmtccoalition.org/?p=21762 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:

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Two New Data Updates from the CDFI Fund https://nmtccoalition.org/2019/11/26/two-new-data-updates-from-the-cdfi-fund/ Tue, 26 Nov 2019 15:25:01 +0000 https://nmtccoalition.org/?p=21637 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.

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