(MENAFN- GlobeNewsWire - Nasdaq) New allocation marks its 7th award since 2016 and will help spur economic development in low-income areas throughout New York City
New York, NY, Oct. 24, 2024 (GLOBE NEWSWIRE) -- New York City Regional Center (“NYCRC”) is pleased to announce an award of $50 million in New market Tax Credits from the Community Development financial Institutions Fund of the U.S. Department of Treasury. The credits will be allocated to New York City Regional Community Development (“NYCR-CDE”), a Community Development Entity managed by NYCRC. It was one of 102 organizations from across the United States receiving awards this year.
Since 2016, NYCR-CDE has received seven separate annual tax credit awards totaling $315 million from the U.S. Department of Treasury. To receive a New Market Tax Credit allocation award, the company was required to demonstrate a mission and track record of providing investment capital in low-income communities.
NYCR-CDE's new $50 million New Market Tax Credit allocation will provide financing to community development projects that typically face financing challenges, such as health care centers, charter schools, and community recreational facilities located in underserved areas of New York City. Examples of prior economic development projects utilizing NYCR-CDE tax credit financing over the past eight years include:
Construction of the National Urban League's new headquarters in Harlem Redevelopment of the Bedford Union Armory in Brooklyn Redevelopment of the Nike Armory Track & Field Center in Washington Heights Expansion of St. John's Episcopal Hospital Center in Far Rockaway Construction of eight charter schools
$23 million for DREAM in the South Bronx $20 million for Achievement First Linden Middle School in Brooklyn $20 million for KIPP NYC in the Bronx $18 million for Neighborhood Charter School in the Bronx $18 million for Promise Academy II in East Harlem $15 million for Comp Sci High in the Bronx $15 million for DREAM in the South Bronx
“We are excited to receive our 7th allocation from the U.S. Department of Treasury,” said George Olsen, NYCRC Co-Managing Principal.“This new $50 million New Market Tax Credit award will continue our mission to provide much needed capital to low-income areas throughout New York City.”
“We are proud of our track record of directing dollars to underserved areas over the past 16 years,” said Paul Levinsohn, NYCRC Co-Managing Principal. “We look forward to utilizing this new award to help jumpstart more shovel-ready projects in distressed parts of our city.”
The New Market Tax Credit Program was created by Congress in 2000 in an effort to stimulate private investment and economic growth in low-income neighborhoods and rural communities that lack access to capital. Historically, low-income communities often have difficulty attracting investment. The program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies. Private capital is incentivized by providing federal income tax credits to investors in exchange for making equity investments in low-income neighborhoods.
About New York City Regional Center
The NYCRC was approved by the United States Citizenship and Immigration Services in 2008 to secure foreign investment for real estate and infrastructure projects under the EB-5 Immigrant Investor Program. Congress created the EB-5 program to stimulate economic development through foreign investment. The program's mandate is to use foreign investment to spur job creation while simultaneously affording eligible foreign investors the opportunity to become lawful permanent residents of the United States. The NYCRC was the first EB-5 regional center approved in New York City.
Over the past 16 years, the NYCRC has put $1.58 billion of EB-5 capital and $315 million of New Market Tax Credit capital to work across a broad spectrum of infrastructure and real estate projects in New York City. Much of this capital has been invested in low-income areas in need of long-term economic growth. Examples include:
$873 million to finance ground-up, redevelopment, and infrastructure projects in Brooklyn, including seven projects totaling $385 million in the Brooklyn Navy Yard $321 million to finance ground-up construction in the Bronx $232.5 million to finance the construction of a public high-speed wireless infrastructure network in New York City subway stations and along city streets $127.5 million to finance ground-up and redevelopment projects in Washington Heights (an Upper Manhattan Empowerment Zone)
To date, 40 projects throughout New York City have utilized NYCRC EB-5 and New Market Tax Credit financing to assist in the construction of over 5 million square feet of new development and renovation as well as critical infrastructure initiatives. In addition to fueling economic development, NYCRC offerings have enabled over 6,000 individuals to become permanent residents of the United States through the EB-5 Immigrant Investor Program.
About the New Markets Tax Credit Program
Established by Congress in 2000, the New Markets Tax Credit Program assists economically distressed communities attract private investment capital. This federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. Communities benefit from the jobs associated with investments in manufacturing, retail, and technology. Communities also benefit from greater access to housing and public facilities in health, education, and childcare.
Through the New Market Tax Credit Program, the U.S. Department of Treasury allocates tax credit authority to Community Development Entities (CDEs) through a competitive application process. CDEs are financial intermediaries through which investment capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. With these capital investments, CDEs can make loans and investments to businesses operating in distressed areas that have better rates, terms, and flexibility than the market. Historically, for every $1 invested by the federal government, the New Market Tax Credit Program awards generated $8 of private investment.
Since 2001, $81 billion in New Market Tax Credits have been invested in low-income communities resulting in the construction or rehabilitation of approximately 259 million square feet of commercial real estate.
NYCR-CDE, LLC is an Equal Opportunity Provider.
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