The Community Development Financial Institutions Fund (CDFI Fund), the division of the U.S. Treasury tasked with administering the New Markets Tax Credit (NMTC) program, announced Thursday that Civic San Diego has received $23 million in 2013 round of NMTC allocations.
“This money will allow us to invest in more great projects, like the Copley-Price YMCA, that bring much needed jobs and services to our low-income neighborhoods,” said San Diego Mayor Kevin Faulconer. “These neighborhoods have been overlooked for too long and these funds will help us make significant progress toward bringing improvements and opportunities to these communities.”
In 2012 Civic San Diego formed the Civic San Diego Economic Growth and Neighborhood Investment Fund, a community development entity and subsidiary of Civic San Diego. The purpose of the fund is to apply for NMTC allocations and manage Qualifying Low-Income Community Investments in the low-income communities of San Diego.
In 2013, the first year it applied, the Neighborhood Investment Fund received an allocation of $35 million in NMTCs. The fund then allocated $23 million in innovative financing to help build the new Copley-Price Family YMCA facility in City Heights. Organizations, developers and entities that have NMTC eligible projects are encouraged to contact Michael Lengyel at Civic San Diego at 619-533-7158.
The NMTC Program was established by Congress in 2000 to drive investment in operating businesses and real estate projects in low-income communities. The program attracts investment capital to these communities by allowing corporations and individuals to receive a credit against their Federal income taxes in exchange for making direct equity investments in community development entities.
The Community Development Financial Institutions Fund has issued 836 awards, totaling $40 billion since 2000.