WASHINGTON, Oct. 10 /PRNewswire-USNewswire/ -- NCB Capital Impact today
announced that it will receive a third New Markets Tax Credit (NMTC)
allocation from the U.S. Department of the Treasury (Treasury), bringing
its total NMTC allocations to $229 million. Treasury's Community
Development Financial Institutions (CDFI) Fund named 61 organizations as
recipients of the $3.9 billion in tax credits for use in low-income
communities under the 2007 round of the NMTC Program.
NCB Capital Impact was chosen among 258 applicants to receive $100
million for financing health care and education facilities in low-income
communities throughout the U.S. Since July 2005, NCB Capital Impact has
closed NMTC transactions totaling $97 million, with another $25 million
slated to close before the end of 2007.
"NMTC transactions create opportunities for community-based
organizations to develop greatly needed facilities in low-income
neighborhoods," said Terry Simonette, president and CEO of NCB Capital
Impact. "This allocation provides us with a critical financing tool to
continue delivering capital with consistency and efficiency in communities
that need it most."
NMTC transactions allow recipient community organizations to reduce
operating costs, which makes funds available for additional services;
increase space to serve more people; and focus more resources on programs
to improve health and education. To date, $55 million of NMTC transactions
awarded to NCB Capital Impact have financed community health care centers
and $42 million have financed school facilities, benefiting tens of
thousands of patients and thousands of students.
"These tax credits are intended to spur new private sector investment
in communities in need across the United States," said Deputy Secretary of
the Treasury Robert Kimmitt. "The vision of the CDFI Fund is to help give
all Americans access to affordable credit, capital and financial services."
"These tax credits, totaling $3.9 billion, are important to encourage
investment in rural and urban low-income communities across the United
States," said CDFI Fund Director Kimberly Reed.
With this Round V allocation, NCB Capital Impact will not only continue
to finance schools and health care centers that serve low-income and very
low-income populations, but also expand disbursements to include long-term
care facilities and mixed-use affordable cooperative housing.
The NMTC Program, established by Congress in December 2000, permits
individual and corporate taxpayers to receive a credit against federal
income taxes for making qualified equity investments in investment vehicles
known as Community Development Entities (CDEs). The credit provided to the
investor totals 39 percent of the cost of the investment and is claimed
over a seven-year period. Substantially all of the taxpayer's investment
must in turn be used by the CDE to make qualified investments in low-income
communities. The 61 organizations were selected through a competitive
application and rigorous review process.
NCB Capital Impact, the non-profit affiliate of NCB, provides financial
services and technical assistance to create more affordable cooperative
homeownership, assisted living, housing and services for the frail and
elderly, and facilities for healthcare centers and charter schools.
Headquartered in Washington, D.C., NCB Capital Impact has offices in
California and New York. To learn more about NCB Capital Impact, its
programs and initiatives in advancing education, affordable housing, health
care and long-term care for low- to moderate-income individuals, visit
SOURCE NCB Capital Impact