Estimated Timetable Given for 2010 NMTC Round

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Tax Credit Advisor, January 2010: Donna Gambrell, Director of the Community Development Financial Institutions (CDFI) Fund, outlined the tentative timetable for the 2010 funding round for the federal new markets tax credit (NMTC) program, in a speech on December 10.

She said the Fund anticipates the 2010 funding round to open next spring and for allocation awards will be announced in December 2010. Of course, a 2010 funding round is contingent on Congress passing legislation to extend the program beyond 2009. A House-passed bill would do this (see p. 1 article).

Gambrell also said the allocation application that will be revised in time for the 2010 round. She indicated that the Fund hopes to come up with a different approach from how the NMTC program’s related party rules are currently applied, noting at present their application discourages equity investment and complicates transactions.

She noted that for the one-year period ending 11/30/09, Community Development Entities will have raised 27% less in capital than in the preceding one-year period, putting 2009 on track to be the first year in which the volume of investments in CDEs has declined from the prior year.

(Speech: http://www.cdfifund.gov/speeches/Gambrell-2009-10-NMTCC-AnnualConference.asp)