A recent report commissioned by the CDFI Fund not only found full compliance amongst all Community Development Entities (CDEs) reviewed, but also found that CDEs generally exceeded minimum financing thresholds mandated by the IRS.
The study also found that CDEs charged similar fees for single-CDE transactions and multi-CDE transactions, contradicting a hypothesis that more complex transactions would translate to greater costs. Furthermore, the study found that investor returns were independent of project characteristics, having more to do with the tax credit market. Observed best practices for CDEs are also made available.
The report, titled Compliance Review of New Markets Tax Credit Program was released August 2017 and conducted by Summit Consulting LLC.
