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