CDFI Fund Makes Additional New Markets Credit Allocations

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Tax Credit Advisor, July 2009: The Community Development Financial Institutions (CDFI) Fund has announced $1.5 billion in additional new markets tax credit (NMTC) allocation awards to 32 organizations nationwide.


The new funds, provided by the American Recovery and Reinvestment Act, were awarded to community development entities (CDEs) that were unsuccessful in their application for an NMTC allocation in the program’s 2008 funding round.


The new awardees plan to use their new allocations to fund investments in renewable energy projects, charter schools, health care facilities, manufacturing companies, retail centers, and other projects.


The 32 CDES receiving awards have identified principal service areas covering 33 states, the District of Columbia, and Puerto Rico.


The largest of the new awards, $95 million, went to Columbia, MD-based ESIC New Markets Partners, LP, which has a national service area and plans to make investments predominantly in mixed-use real estate projects. The smallest awards, of $10 million each, went to Albina Equity Fund, I LLC, of Portland, OR, and Bethany Square, LLC, of Santa Monica, CA. Both plan to make investments predominantly in mixed-use real estate projects.


Speaking at a Washington conference on 6/11/09, Rosa Martinez of the CDFI Fund said that more than $285 million of the newly awarded funds will be going for projects in non-metropolitan counties.


The new awards supplement $3.5 billion in 2008 allocation awards made to 70 organizations in October 2008.


(Details of new awards: http://www.cdfifund.gov)