National Trust Community Investment Corporation (NTCIC), a community development entity (CDE) and subsidiary of The National Trust for Historic Preservation, headquartered in Washington, DC, was awarded $65 million in federal New Markets Tax Credit (NMTC) allocation authority from a $7.0 billion round by the U.S. Department of Treasury’s Community Development Financial Institutions Fund. The NMTC is a federal tax credit that stimulates private investment in economically distressed communities.
NTCIC received one of the largest allocations for CDEs based in DC and is one of 120 CDEs that received allocation authority from a pool of 238 applicants. NTCIC will use its allocation to make NMTC investments in vacant or underutilized historic buildings that need additional capital to redevelop into job-producing and community-serving assets and will prioritize projects that support job training and educational facilities, food co-ops and community centers. NTCIC has committed to set aside $6.5 million of its allocation to further capitalize a small deal fund which makes investments of $2 million or less in Main Street communities to help revitalize downtowns and commercial districts.
NTCIC has now received a total of $523 million of NMTC allocation since the program’s inception in 2000 and has invested in 69 projects in 27 states. “The NMTC program is a uniquely powerful way to make real change in low-income communities, including underinvested Main Street communities,” said Merrill Hoopengardner, president of NTCIC. “We are thrilled to be selected again and look forward to using our newly awarded NMTC allocation on more high-impact investments, stimulating growth and creating jobs where they are needed most.”
NTCIC’s NMTC investments have created 8,843 permanent jobs to date and should generate 2,943 additional jobs from projects under construction. On an annual basis, over 25,000 low-income community residents and customers have benefitted from direct goods and services provided through community, health care, education, business incubation, and social service facilities. These investments are in areas with average poverty levels of 35.5%, average median incomes at 63% of statewide levels, and average unemployment rates in excess of 19% of the national average.
The New Markets Tax Credit Program, established by Congress in December 2000, was designed to encourage investments in low-income communities that traditionally had poor access to debt and equity capital. Since the program’s inception, New Markets Tax Credit investments are estimated to have created or retained an estimated 197,585 new jobs and supported the construction of 32 million square feet of manufacturing space, 75 million square feet of office space, and 57.5 million square feet of retail space. The credit is a 39% federal credit, earned on a Qualified Equity Investment into a certified CDE and is claimed over a 7-year compliance period. The CDE must make a Qualified Low-Income Community Investment in the form of equity or a loan to a Qualified Active Low-Income Community Business.