Treasury Department Awards $100 Million in New Markets Tax Credits to NCB Capital Impact Allocations Will Support Health Care, Education and Other Community

Projects



    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
 www.ncbcapitalimpact.org.
 
 
 
 
 

SOURCE NCB Capital Impact

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