NYCEDC has been awarded $50M in federal New Markets Tax Credits (NMTC) to help spur economic growth in underserved neighborhoods.
On behalf of the Strategic Investments Group (SIG) at NYCEDC, I’m happy to announce that NYC Neighborhood Capital Corporation (NYCNCC), a community development entity we administer, has been awarded New Markets Tax Credits from the US Department of Treasury for the third time since 2016. The $50M award provides an exciting opportunity to advance community-focused real estate development projects, create jobs, and strengthen historically underserved areas throughout New York City.
Inclusive Growth in NYC
These NMTC awards are invaluable for NYC neighborhoods. Through NYCNCC, we leverage the awarded funds to provide low-cost financing to development projects in low-income NYC communities—including schools, healthcare centers, grocery stores, community facilities, and more. And unlike most other community development entities (CDEs) located in New York State, which have a national or state-wide reach, NYCNCC serves only projects in New York City, so the benefits of the award stay within the five boroughs.
By the Numbers
The number of patients who will be served annually at CHN East New York Health Clinic, up from 4,400
Since NYCNCC received its first NMTC allocation in 2016—a $55M award—NYCNCC has helped finance seven impactful projects in underserved NYC communities, including:
- Rockaway Beach Medical Arts Center in the Rockaways, which will bring healthcare services to 5,000 low-income community members annually
- The Madison Square Boys & Girls Club in Central Harlem, which will provide community space, recreation facilities, and academic support for 450 youth daily and 1,500 annually
- The Village ShopRite Grocery Store in Soundview, Bronx, which will provide healthy food options for 15,000 low-income residents annually
- The GMDC Manufacturing Center in Ozone Park, Queens, which will provide dedicated workspace and affordable, flexible lease rates for 25 light-industrial small-businesses
- Building 127 Manufacturing Center at the Brooklyn Navy Yard, which will create 300 jobs in south Williamsburg/Clinton Hill
- A new Food Bazaar in Lower Concourse, Bronx, which will eliminate a food desert by serving healthy food options for 35,000 customers annually
- Community Healthcare Network East New York Health Clinic, which will increase patient services from 4,400 to 10,500 patients annually
I know I speak for everyone on the NYCNCC and SIG teams when I say we look forward to using this award to build upon a legacy of helping the city’s low-income and underserved communities become stronger, safer, and more equitable. The award highlights SIG’s dedication to driving inclusive economic development using a suite of financial tools that advance the workforce and economic mobility across the five boroughs.
By the Numbers
For every $1 invested by the federal government, the NMTC Program generates over $8 of private investment.
More about NMTC
The NMTC program, administered by the Community Development Financial Institutions (CDFI) Fund, provides tax credits that advance economic development in order to spur private investment in distressed communities. The CDFI Fund was created in 1994 to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities.
What People Are Saying
"During these challenging economic times, robust local revitalization efforts and critical federal investments will be essential components to future success in New York City," said Council Member Paul Vallone, Chair of the Committee on Economic Development. "I welcome news our city was selected for the New Markets Tax Credits initiative, which will create jobs and strengthen neighborhoods, positioning them for long-term success to serve New Yorkers for generations to come."
“Congratulations to the team at NYC Neighborhood Capital Corporation! Now more than ever, New York City needs this $50M to continue to invest in community-focused projects that provide access to healthy food; affordable healthcare; after-school programs for our youth, and infrastructure for projects that create quality jobs in science and technology. These projects will also support our local small businesses and have long-term impact in our communities,” said Yanki Tshering, Executive Director of the Business Center for New Americans.
“New Markets Tax Credits are an essential financing tool for community-focused projects that provide vital social services, including healthcare, to thousands of residents within the boroughs. Now, as the city responds to the impacts of COVID, these community investments are critical and needed more than ever,” said Nancy Biberman, Founder & President Emerita of the Women’s Housing & Economic Development Corporation (WHEDco).
“This award will help finance projects that truly uplift underserved communities, and builds on NYCNCC’s track record of investing in projects that improve the quality of life for New Yorkers throughout the city,” said Seth Bornstein, Executive Director of the Queens Economic Development Corporation.
“United Fund Advisors is proud to continue its longstanding partnership with NYCEDC and NYCNCC to invest NMTCs in low-income communities across the city,” said Ashley Dills, Senior Vice President at United Fund Advisors.
“Madison Square Boys & Girls Club was able to utilize the New Market Tax Credit to build our Pinkerton Clubhouse in Harlem providing critical after-school programming to the surrounding community. The NMTC allowed Madison to provide a state-of-the-art facility to provide opportunities for our members to achieve their dreams,” said Tim McChristian, Executive Director of the Madison Square Boys & Girls Club.
“By being able to access New Market Tax Credits from the New York City Neighborhood Capital Corporation, GMDC’s newest project, the GMDC Ozone Park Industrial Center, will create high-quality low-cost space for dozens of manufacturers, who will employ upwards of 80 people in high-quality manufacturing jobs”, stated Brian T. Coleman, CEO of Greenpoint Manufacturing and Design Center.
“NMTCs are a key source of financing for our project to rebuild, and double the size of, our East New York – Dr. Betty Shabazz Health Center. At our Health Center, we will provide more quality care to one of New York’s most underserved communities and will hire additional New Yorkers to deliver that care.” said David Gross, General Counsel at Community Healthcare Network.