CDFI Fund Director Director Donna Gambrell recently delivered a wide ranging address on the New Markets Tax Credit program at the December 2 meeting of the New Markets Tax Credit Coalition. Director Gambrell discussed two NMTC case-studies and provided a summary of the 2008 NMTC Allocation Round. She noted that, “based on estimates provided by the allocatees, it is anticipated that approximately $1.77 billion (just over 50 percent) will be invested in major urban areas; approximately $833 million (or 24 percent) will be invested in minor urban areas; and approximately $895 million (or 26 percent) will be invested in rural areas.” She also observed that “many organizations met the minimum scoring thresholds, but did not receive an award because we ran out of allocation authority, despite making a record number of NMTC awards. As we look toward future rounds, the CDFI Fund may seek to expand the number of NMTC awards that can be used to serve distressed communities across the nation.”
Director Gambrell also provided a summary of from the CDFI Fund’s NMTC Trend Report from earlier this year, discussed impact data and provided an outlook for FY-2009. She noted that the CDFI Fund is “starting the new fiscal year with a renewed effort towards understanding the challenges facing CDEs and NMTC investors.” The CDFI Fund will also form a subcommittee “to better understand the impact of this financial crisis on the institutions the CDFI Fund supports, the communities they serve, and to explore how the CDFI Fund might respond.” Director Gambrell also noted that “the 2009 allocation round will likely open in mid-January, and application materials will be released at that time. Those wishing to apply for the program will likely have until April to return their completed applications.” read more…
