Your hyper-local MesaZona blogger, who started online independent publishing with a dedicated commitment to promoting local investments in affordable housing back in February 2015 with a feature post on Gorman Construction Company's Escobedo @ Verde Vista, had the pleasure yesterday to be invited to attend the opening celebration for the newest Gorman remarkable success in the heart of downtown Tempe: Valor on Eighth - 50 new affordable housing units for veterans and veterans' families.
(more about that in a later post getting drafted now).
During the rousing speeches from all the compassionate community development partners present, a spokesperson for Save The Family, seen in the image to the left, stated that Arizona ranks #48 out of the 50 States for investments in affordable housing.
That's nothing to brag about or to be proud of - it points out actionable intelligence from all those gathered whose organizations are prominently and proudly displayed on the opening celebration banner.
Among those who spoke were Gorman President/CEO Brian Swanton, AZ State Attorney Bill Montgomery, Carol Ditmore the new head of the Arizona Department of Housing ADOH, Tempe Town Mayor Mark Mitchell, community-builder and activist Robin Saucedo-Arrondo, and supporting charitable organizations: Arizona Diamondbacks and Thunderbirds.
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AFFORDABLE HOUSING FINANCE
$3.5 Billion in NMTCs Awarded to Spur Economic Development
73 CDEs have been selected in the 2017 round.
"Seventy-three Community Development Entities (CDEs) have been awarded $3.5 billion in New Markets Tax Credits (NMTCs).
The recipients were selected from a pool of 230 applicants that requested a total of $16.2 billion in tax credit allocation authority in the 2017 round.
Blogger Note: see more information below
The selected CDEs are headquartered in 29 different states, the District of Columbia, and Guam.
About $2.4 billion, or 70%, of the investment proceeds will likely be used to finance or support loans to or investments in operating businesses in low-income communities, according to the Treasury Department’s Community Development Financial Institutions (CDFI) Fund, which administers the program.
About $1.1 billion, or 30%, will likely be used to finance and support real estate projects in low-income communities. . . "
Three organizations in Phoenix familiar to the affordable housing industry or their affiliates received an allocation:
> Rasa Div Fund $55,000,000
> DV Community Investment LLC $50,000,000
> Prestamos CDFI LLC $30,000,000
(See full list of recipients in the link below)
Shown above Phoenix Mayor Greg Stanton at the podium and Mesa Mayor John Giles at an event earlier this year
Full list of recipients.
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Source: http://www.housingfinance.com
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Established by Congress in December 2000, the NMTC program permits individual and corporate taxpayers to receive a nonrefundable tax credit against federal income taxes for making equity investments in CDEs. CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39%of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities.
The 2018 and 2019 allocation rounds at $3.5 billion each were retained in the Tax Cuts and Jobs Act.
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ABOUT THE AUTHOR
Donna Kimura
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RELATED CONTENT
New Markets Tax Credit and Low-Income Housing Tax Credit mapping tool
Look at every opportunity to finance projects by evaluating their eligibility for tax credit financing through the New Markets Tax Credit (NMTC) and Low-Income Housing Tax Credit (LIHTC) Programs, which are designed to support investment in communities and meet the housing needs of residents.The NMTC Program provides tax credits for investment into operating businesses and development projects located in qualifying "distressed" communities by certified Community Development Entities (CDEs). Projects closed between Oct. 31, 2017 and Oct. 31, 2018 may use either 2006-2010 ACS data or 2011-2015 ACS Low-Income Community eligibility data applied to the 2010 census tracts for determining Low-Income Community eligibility. Projects closed on or after Nov. 1, 2018 must use 2011-2015 ACS Low-Income Community eligibility data applied to the 2010 census tracts for determining Low-Income Community eligibility. This mapping tool can help you determine if a project may qualify within eligible census tracts under either the 2006-2010 ACS data or the 2011-2015 ACS data through the edit data function on the map.For a housing project, this map will allow you to quickly determine if your project lies within a qualifying census tract or difficult development area for LIHTC purposes. Qualifying may be beneficial to application scoring and boosting eligible basis based on US Department of Housing and Urban Development (HUD) 2013 data. Please review the project’s respective state Qualified Application Plan (QAP) for basis boost policy.Data presented in this map are provided as a reference and the validity cannot be guaranteed. All data should be verified with HUD and the CDFI Fund before using it in your decision making process.
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