The first-time allocation to NYC Neighborhood Capital Corporation will help spur economic growth in underserved neighborhoods
NEW YORK, NY—New York City Economic Development Corporation (NYCEDC) today announced that New York City has been awarded $55 million in New Markets Tax Credits (NMTC) from the U.S. Department of Treasury. The credits will be allocated to the New York City Neighborhood Capital Corporation (NYCNCC), a community development entity administered by NYCEDC. The $55 million NMTC allocation provides an exciting opportunity to leverage private investment and provide low-cost financing to advance community-focused real estate development projects, create jobs, and strengthen historically underserved areas throughout the City of New York.
The NMTC Program attracts private capital into low-income communities by providing a federal income tax credit to individual and corporate investors in exchange for making equity investments in those neighborhoods. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years.
“The New Markets Tax Credit program has stimulated critical private investment in underserved areas while empowering local decision-making on economic revitalization efforts,” said NYCEDC President Maria Torres-Springer. “That is why we are so thrilled to receive this allocation and deploy this uniquely flexible financial tool for the benefit of communities across the five boroughs, creating jobs and opportunity for New Yorkers most in need.”
Out of 238 applicants, NYCNCC was one of 120 community development entities (CDEs) selected to receive $7 billion in NMTCs under this round of awards covering 2015 and 2016 – one of the largest single rounds distributed since the NMTC program launched in 2001. Click here for a full list of 2015-2016 NMTC recipients.
Allocation of the $55 million in NMTCs marks the first time NYCNCC has received an award through this program. The NMTC allocation will be used to provide catalytic project financing to impactful community development projects that typically face financing challenges, such as health care centers, community facilities, grocery stores, industrial space, and small business retailers located in underserved areas.
“With this $55M allocation of New Markets Tax Credits, we'll enable critical projects to leverage an even greater investment to deliver services and facilities all over NYC. I’m thrilled to collaborate with my fellow board members to distribute this award to neighborhoods that need it most,” said Gordon Bell, Executive Vice President of the Bedford Stuyvesant Restoration Corporation.
“The $55M New Markets Tax Credits allocation is a terrific tool to drive essential community-focused projects benefitting thousands of residents within the five boroughs. By investing in underserved neighborhoods now, we are supporting economic opportunities for current and future generations of New Yorkers,” said Nancy Biberman, President Women’s Housing & Economic Development Corporation (WHEDco).
“Neighborhood Housing Services of Staten Island congratulates the NYC Neighborhood Capital Corporation on having been awarded $55M in New Markets Tax Credits by the U.S. Treasury Department. This is a fantastic opportunity to make equity investments in low-income communities and challenged middle neighborhoods we serve and to realize the dream of sustainable communities through well-conceived economic development,” said Alfred Gill, Executive Director of Neighborhood Housing Services of Staten Island.
“I congratulate the NYC Neighborhood Capital Corporation for receiving $55M in New Markets Tax Credits. This is a unique chance to strategically invest this award into community-focused projects that will truly uplift underserved communities and improve the quality of life for New Yorkers throughout the city,” said Seth Bornstein, Executive Director of the Queens Economic Development Corporation.
NYCNCC’s NMTC allocation will be solely focused on projects within New York City’s five boroughs, whereas most other CDEs located in New York have a national or state-wide reach. The Community Development Financial Institution (CDFI) Fund was created in 1994 to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities. The NMTC Program, administered by the CDFI Fund, provides tax credits that advance economic development in order to spur private investment in distressed communities.
New York City Economic Development Corporation creates shared prosperity across New York City’s five boroughs by strengthening neighborhoods and creating good jobs. NYCEDC works with and for communities to provide them with the resources they need to thrive, and we invest in projects that increase sustainability, support job growth, develop talent, and spark innovation to strengthen the City’s competitive advantage. To learn more about our work and initiatives, please visit us on Facebook, Twitter, or Instagram.