SAN DIEGO–In an effort to expand programs and services for disadvantaged young adults in the region, Civic San Diego announced Wednesday an $8 million New Markets Tax Credit investment with Urban Corps of San Diego County (Urban Corps), a local conservation corps providing youth job training and education since 1989.
The New Markets Tax Credit program attracts investment capital to targeted communities by allowing corporations and individuals to receive a credit against their federal income taxes in exchange for making direct equity investments in entities such as Civic San Diego. In this investment, the $8 million in New Markets Tax Credits financing was provided by Bank of America Merrill Lynch, a longtime partner of Urban Corps. The proceeds allow Urban Corps to pay down approximately $2 million on their existing mortgage and reinvest the savings back into their operations.
“Civic San Diego’s New Markets Tax Credit program is one example of how our organization has quickly and nimbly responded to the dissolution of redevelopment and continued to invest in our communities in projects that make a positive difference,” said Reese A. Jarrett, President of Civic San Diego. “The New Markets Tax Credits attracts capital to projects that provide community services and benefits that contribute to improving the overall quality of life in San Diego.”
Urban Corps youth participants work 24 to 30 hours each week in the community learning tangible job skills and earning vocational credits. Members attend school two days a week and spend one hour each day after work in a study group to prepare for the California High School Exit Exam. With the capital investment from Civic San Diego, Urban Corps anticipates being able to increase annual enrollment from 190 to 230 youth and increase the average number of annual graduates from 100 to 125.
“Urban Corps is grateful for Civic San Diego’s vote of confidence in our program,” said Robert Chávez, CEO of Urban Corps. “This amounts to a huge investment in the youth of San Diego and the future of our community. New Markets Tax Credit funding will greatly enhance our organization’s ability to help more young adults positively reengage in the community, become self-sufficient through real-world job training and education, and in-turn, support their families and the economic development of their own neighborhoods.”
In 2012 Civic San Diego formed the Economic Growth and Neighborhood Investment Fund to become certified as a Community Development Entity. The main role of the Community Development Entity is to secure New Markets Tax Credit funds as well as manage qualifying low-income community investments to continue the work of revitalizing San Diego’s underserved neighborhoods.
Civic San Diego has received three allocations of New Markets Tax Credits totaling $83 million from the United States Department of the Treasury.
Civic San Diego is actively working to identify qualifying projects to receive this type of investment. In order to qualify, a project must be located in, or directly benefit, a low-income community by creating quality jobs, or providing goods or services to low-income persons.
