It’s Not Just the Census Tract: Community Impact Is More Important Than Ever in NMTC Program
By Caitlin Jones
1 min read
It’s Not Just the Census Tract: Community Impact Is More Important Than Ever in NMTC Program
By Caitlin Jones
0 min read
Tax Credit Advisor, August 2011: Community development entities (CDEs) and investors are placing much greater weight on the level of community impact of federal new markets tax credit projects, both in project selection and in the pricing for the tax credits.
This gravitation toward projects with high community impact — those providing substantial benefits to low-income communities and low-income persons (e.g., jobs, services, spurring other investment) — appears to be the result of increased emphasis in this area in the program’s 2011 funding round and as a reaction to a negative Bloomberg magazine article published earlier this year. That article, which focused in part on a luxury Chicago hotel financed with new markets tax credits, suggested that the program has helped finance hundreds of “upscale” projects “on streets far from poverty.”
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