2023 Credit Allocation is $5 Million Larger Than Previous Year
Multiple Key Projects Closed in 2023 Across the Bronx, Manhattan, and Queens
NEW YORK, NY—Today, New York City Economic Development Corporation (NYCEDC) announced that New York City Neighborhood Capital Corporation (NYCNCC), a Community Development Entity (CDE) managed by NYCEDC, has received $50 million in New Markets Tax Credits from the U.S. Department of the Treasury to support impactful projects in low-income areas of New York City. This tax credit allocation is $5 million larger than what was awarded in the previous year and builds on a slate of recent high-impact projects that NYCNCC supported across the five boroughs.
The federal New Markets Tax Credits program drives community development and economic growth through the use of tax credits that attract private investment to low-income communities. Each year, CDE’s around the country apply to the Treasury Department for an allocation of credits, which can be sold to investors in exchange for private investments into sponsored projects. In the most recent cycle, 102 CDEs, out of the 197 that applied, received an allocation of tax credits totaling $5 billion.
“The Adams Administration is laser focused on New York City’s economic recovery, and with this new investment of $50 million in New Markets Tax Credits, we will be able to build a more equitable city,” said New York City Mayor Eric Adams. “These tax credits will provide financial assistance for supportive housing in the Bronx, environmental job opportunities in Harlem, and so many other economic opportunities in low-income areas across the five boroughs. We are grateful for this support from the U.S. Department of the Treasury that will help bring our city back even stronger.”
“New York City's economy is strong and growing, and as that economic expansion continues we must stay laser focused on building an equitable economy and investing in historically-underserved communities across the five boroughs,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “This substantial allotment of tax credits, $5M more than last year, is a tremendous tool for the city to deploy in service of high-impact projects that lift up communities across New York.”
“This generous allocation is a testament to the quality of projects that NYCNCC is supporting and the impact these organizations are having on the lives of New Yorkers,” said NYCEDC President & CEO Andrew Kimball. “As we strive to build a more equitable economy for New York City, New Markets Tax Credits present a tangible opportunity for us to invest in low-income areas of the city and help provide good-paying jobs for New Yorkers.”
Since 2017, NYCNCC has received $255 million in credits from the Treasury Department, and has closed on 17 projects, totaling $195 million worth of credits. The projects can be carried out by either for-profit or nonprofit entities, but they must occur in designated low-income areas, and serve the needs of the local community. NYCNCC’s investment strategy supports projects across a range of high-impact sectors, including industrial projects, health centers, supermarkets, schools, and community facilities.
Projects supported by NYCNCC in 2023 include:
● Hope House: NYCNCC is providing financial assistance for the construction of a 16-bed, 12,000 square foot alternative to incarceration facility in the East Tremont neighborhood of the Bronx. Launched with significant community support, the program will provide an innovative continual care treatment model for New York City residents convicted of drug offences. Supportive housing and health treatment will be part of the ongoing rehabilitative experience for participants, helping to break the cycle of recidivism. Hope House is being developed by the Greenburger Center for Social and Criminal Justice, Inc.
● CitySquash: CitySquash will use NYCNCC’s financial assistance for the construction of a purpose-built 15,000 square foot headquarters. CitySquash is a Bronx-based nonprofit that promotes college readiness for disadvantaged youth in the Bronx, and that uses squash as a tool to motivate students from third grade through college. The organization’s enrichment program includes squash, tutoring, mentoring, community service, and college preparation. The facility, which will serve as the organization’s first dedicated headquarters, will include six squash courts, locker rooms, four classrooms, a dedicated learning center, and an administrative space.
● West Harlem Environmental Action, Inc. (WeAct): WeAct is a leading environmental justice group that organizes and educates community members on environmental issues and job-related skills, and advocates for equity-focused environmental policymaking. NYCNCC’s financial assistance will go towards the renovation of an existing four story, 7,819 square foot building in Harlem. Following the renovations, the facility will serve as WeAct’s new headquarters and will include office space, a community center, classrooms, and dedicated educational space.
● Bogopa-Gates: NYCNCC is providing financial assistance in connection with major renovations to a 33,000 square foot Food Bazaar supermarket in Ridgewood, Queens. The project will increase access to fresh food and produce in an underserved area of Queens. Food Bazaar has a history of providing high-quality jobs to local residents. Food Bazaar banners are located in many different ethnically diverse neighborhoods, and feature specialty food products that cater to the preferences of diverse local residents.
“In addition to grants from New York City and State, NYC Neighborhood Capital Corporation's award of New Markets Tax Credits was key to our breaking ground on Hope House,” said Cheryl Roberts, Executive Director, the Greenburger Center. “It took a sustained, 10-year effort to assemble the necessary support to license and build Hope House. We are deeply grateful that NYCNCC quickly recognized the community benefits of this first of its kind program and stepped up immediately to help. Hope House will provide access to treatment and medications instead of only punishment to people living with serious mental illness who are accused of felony level crimes. Instead of sending people to prison where they will have limited access to treatment, we’re proud to be working with partners like NYCNCC to provide the critical mental health care services this vulnerable population needs to stay well and make our City safer for all.”
“Without the support of NYCNCC, the construction of the new Julian H. Roberston Jr. CitySquash Center would not be possible,” said Terence Li, Executive Director, CitySquash. “It is especially meaningful to have an NYC-based CDE behind our project—the NYCEDC and NYCNCC truly understand and appreciate the impact our work has on our specific community. With construction now underway, we anticipate moving into our permanent home in early 2025. We will then begin the process of growing our program to more than double its current enrollment – from serving 200 students per year to eventually 500+. This facility will be the platform and foundation from which the amazing talents and dedication of Bronx children will shine through as they chase their dreams, break down barriers and inspire the community and world around us. We are eternally grateful to NYCNCC for their belief and work in making our dream a reality.”
“The New York City Neighborhood Capital Corporation helped us utilize the New Markets Tax Credit program to secure a favorable loan for the construction of our Environmental Justice Center,” said Peggy Shepard, Executive Director and Co-Founder, WeAct for Environmental Justice. “Located in Harlem, this new center will serve as a convening space and technical assistance hub for grassroots organizations and advocates working to advance environmental and climate justice, providing capacity-building resources, community-based education, and workforce development for residents of low-income communities and communities of color.”
“We're honored to receive the generous support of NYCNCC, which will further enhance the Gates Avenue project's ability to provide the Brooklyn community with affordable and diverse food options. This partnership exemplifies our commitment to enriching the lives of local residents and contributing to the vibrancy of our neighborhoods,” said Edward Suh, Executive Vice President, Bogopa Service Corp. and Food Bazaar Supermarkets.
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city's future economy. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.