SAN DIEGO–The Community Development Financial Institutions Fund (CDFI Fund), the division of the United States Department of the Treasury tasked with administering the New Markets Tax Credit (NMTC) program, announced today the recipients of the 2013 round of NMTC allocations. Civic San Diego (“CivicSD”) has received an award of $23 million.
“This money will allow us to invest in more great projects, like the Copley-Price YMCA, that bring much needed jobs and services to our low-income neighborhoods,” said Mayor Kevin Faulconer. “These neighborhoods have been overlooked for too long and these funds will help us make significant progress toward bringing improvements and opportunities to these communities.”
In 2012, CivicSD formed the Civic San Diego Economic Growth and Neighborhood Investment Fund (“Fund”), a Community Development Entity (CDE) and subsidiary of CivicSD. The purpose of the Fund is to apply for New Markets Tax Credit allocations and manage Qualifying Low-Income Community Investments in the low-income communities of San Diego. In 2013, the first year it applied, the Fund received an allocation of $35 million in NMTCs. The Fund then allocated $23 million in innovative financing to help build the new, state-of-the-art Copley-Price Family YMCA facility in City Heights, located at the corner of Fairmount Avenue and El Cajon Boulevard.
“We are very proud of our second successful NMTC allocation in such a highly-competitive process,” said Cynthia Morgan, Board Chair of CivicSD. “It is exciting that the direct beneficiaries of these funds will be low-income and highly distressed neighborhoods,” said Morgan.
The NMTC Program was established by Congress in 2000 to drive investment in operating businesses and real estate projects in low-income communities. The program attracts investment capital to these communities by allowing corporations and individuals to receive a credit against their Federal income taxes in exchange for making direct equity investments in CDEs, such as CivicSD’s Fund.
Since the inception of the NMTC Program (not including this round’s allocations), the CDFI Fund has made 836 awards issuing a total of $40 billion in tax credit authority to CDEs through a competitive application process.
Organizations, developers and entities that have NMTC eligible projects are encouraged to contact Michael Lengyel at civic SD (619) 533-7158.