Local leaders, businesses, nonprofits, and community development organizations sound-off on the New Markets Tax Credit

In November of 2019, nearly 1,000 organizations signed a letter asking Congress to extend the New Markets Tax Credit.

We asked organizations signing the letter to tell us why the NMTC is important to their organization or community. Below is a sampling.

Why is the New Markets Tax Credit Important to Your Community?

Brenda Battey, CFO, Broadway Federal Bank, Los Angeles, CA

Critically important to spur business opportunities in lower income communities in and around the City of Los Angeles.

Janet Laatsch, CEO, Greater Seacoast Community Health, Somersworth, NH

This has allowed us to make capital improvements allowing us to provide additional services to our under-served patients.

Romona Taylor Williams, Executive Director, Montgomery Communities United for Prosperity (MCUP), Duck Hill, MS

Rural officials, businesses, community based organizations and residents face overwhelming challenges to solving the extraordinary socio-economic barriers that impede achieving a healthy quality of life and prosperity. NMTC’s are a significant tool to help overcome such barriers and attract private investments in community and economic development.

Mary Rogers, Executive Director, Sherwood Forest Camp, Inc., Saint Louis, MO

New Markets Tax Credits (NMTC) enabled Sherwood Forest, a youth development organization serving young people from economically distressed families and communities in the St. Louis metropolitan region, to expand our resident camp facilities located in Reynolds County, Missouri. This facility expansion allows Sherwood Forest to serve more children during the summer and in the school year. Construction took place in an economically distressed rural area of the State of Missouri. Without NMTC, the scope of this project would have been greatly reduced. The positive impact to those we serve from St. Louis and to our community in rural Missouri will be felt for a long time to come. I strongly encourage the bi-partisan support for the renewal of the New Markets Tax Credit Extension Act (H.R. 1680 and S. 750) so that other communities will benefit in years to come.

Michelle Seychel, Manager, Pine Lake Apartments, Waterford, MI

I have been managing LIHTC communities for the past 4 years. I have seen this program help so many low-income families get back on their feet. Not every family can afford to pay top dollar for rent, nor can they afford high move-in costs. The lower yearly rental increases help families stay in their homes for long periods of time. This means stability for them, stability is very important for children. When a child has to move every year because their parents cannot afford the rent is a very hard transition. I hope this program stays around for a very long time.

Kathy Johnson, President and CEO, Gordon County Chamber of Commerce, GA

This community was involved in the beginning of the modern flooring industry in the United States. Mannington has been a major partner in the growth and innovation of that industry, but more importantly, they have been a partner with our community.

Rick Foran, Developer, Astrup Awning Renovation Project, Cleveland, OH

It was the difference between making the redevelopment of a blighted neighborhood being reborn and letting it continue to deteriorate. The jobs aspect of the program is a key driver of the success and gaining local support.

David Allen, The Tennessee Rural Development Fund, Cookeville, TN

It means opportunity to induce/entice investment into Rural Tennessee to improve the quality of life for our communities.

Charles Spies, Chief Executive Officer, CEI Capital Management LLC, Brunswick, ME

[The NMTC is ] a tool to mitigate for declining economic activity, especially in rural areas. We use the NMTC program financing structures to: support the global competitiveness of long-standing core industries to; build economic diversification through investment in new and growing industries; support the foundational institutions in communities such as health care and educational services. This tool is used to enhance local economies so that all persons, especially those with low-incomes have the chance to be part of a healthy and sustainable community.

Mike Bowman, President and CEO, Delaware Technology Park

Delaware Technology Park is excited to launch the FinTech building on STAR Campus in conjunction with the University of Delaware and funded by Discover Bank and Cinnaire. It will contain faculty, students, and entrepreneurs with outstanding data science knowledge and digital management competencies as well as support resources for business development and community education.

Tim, Former Resident and Current Volunteer, Salvation Army Freedom Center

The Freedom Center gave me a brand-new start. I found my spirituality. I praise God every day. I’m so thankful to my daughter for bringing me here. I’m finding happiness now. I love being called Grandpa, getting to see my grandkids. They come to the center for summer camp and to use the computer lab. Yeah, that is my happiness.

Michelle Morlan, Principal, Lotus Development Partners LLC, Seattle, WA

I have worked on more than 70 community projects for which this tool was critical to move them forward. From integrated healthcare facilities serving homeless adults to rural healthcare projects to early childhood education centers in public housing developments, the far reaching impact of the program is well documented. Preserving and extending this resource to make it permanent is essential. Thank you for your support.

Barbara Callaghan, SVP, First Security Bank of Missoula, Missoula, MT

We just used a $12 million NMTC allocation to finance the building of a Domestic and Sexual Violence Shelter and homeless shelter for families. This would not have happened – at least at the capacity that it did – without NMTCs. Numerous women, men, and children will be safe and off the streets in Missoula because of this project.

James Reese, President/CEO, Atlanta Mission, Atlanta, GA

It is an incredibly important part of allowing many who serve the opportunity to complete critical projects that greatly impact the lives of those most struggling in our communities.

Erik Hoekstra, Managing Partner, Redstone, Burlington, VT

We have developed several projects using NMTC that would not otherwise have happened. NMTC is a critical community development tool in northern New England that we have come to rely on.

Terri Preston, Executive Director, The Valued Advisor Fund, Austin, TX

NMTCs provide a vital economic resource enabling businesses to fill economic gaps with below-market, flexible funding that they cannot access in the market and provide for accessible and quality jobs, access to community and commercial goods and services that align with community goals and visions – designed to lift low-income neighborhoods upward and achieve long-term sustainable growth, active workforce participation, and engender prosperity for America’s disadvantaged communities.

Adrienne White, VP Strategy, Citizens Trust Bank, Atlanta, GA

In volunteer capacities, I’ve been the position to help manage the financial aspects of projects that provided educational benefit & jobs to the community. These projects would not have been possible in the same time frame without NMTC funding.

Saurabh Narain, President and CEO, National Community Investment Fund, Chicago, IL

This is one of the most important programs for NCIF as a CDFI and an Impact Investor. From our perspective, there are three key levels of impact: 1. Transactional Impact – the program helps creates and retains jobs, increases the availability of goods and services, healthy foods and financial and social services to underserved markets nationally. NCIF has invested about $275 million in these communities creating about 11,000 jobs. Many of our transactions are catalytic in nature i.e. they help spur other developments in housing, healthcare, education and small business development, all of which add jobs and create economic opportunities. 2. Institutional Impact – as part of NCIF’s strategy, we work with our large network of CDFI and Minority Banks (NCIF is the largest investor in the sector) that act as anchors in these communities. Thus the transactional impact is amplified and creates long term sustainable communities. 3. Knowledge Impact: We have tried to simplify the deployment of the NMTC to help organizations maximize the subsidy given to the borrowers. This helps in accelerating development in some of the most distressed markets nationally.

Audrey Graham, Chair, Moab Area Community Land Trust, Moab, UT

This tax credit is allowing our community to put in infrastructure for over 300 units of workforce housing, as well as three commercial sites (including a much-needed childcare center!) that will keep our gateway resort town alive! The economic benefit’s are almost immeasurable in terms of people’s quality of life, ability to drive less and participate more in the American Dream!”

Ryan Glasgo, COO, Community Credit Lab, Seattle, WA

We invest at 0% interest so we don’t extract from underserved communities — without policies like the NMTC, we will not be able to convince investors to lend to us at 0% or concessionary, regenerative rates that seek equitable outcomes for people. Please preserve the NMTC!