CDFI News

 

 

Director Gambrell Joins Mayor Fenty at Grand Opening of a Child Care Center & Affordable Housing Redevelopment in Washington, DChttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=35Director Gambrell Joins Mayor Fenty at Grand Opening of a Child Care Center & Affordable Housing Redevelopment in Washington, DC<p> <em>​New Markets Tax Credit Program Used to Preserve 27 Affordable Housing Units and Provide Flexible Child Care in Adams Morgan Neighborhood</em></p><p> <strong>Washington, DC</strong> - The U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell participated today in a grand opening celebration with Washington, DC Mayor Adrian Fenty.</p><p>Through the CDFI Fund's New Markets Tax Credit (NMTC) Program, over $9 million in critically needed capital was raised to redevelop the 85-year-old Ontario Court Apartments building. This investment has provided the community with 27 affordable homes and a new early childhood development center in the Adams Morgan neighborhood, which is considered the heart of Washington's Latino community.</p><p>"As a native Washingtonian, I am very proud to know the New Markets Tax Credit Program is at work in our city providing the critical piece of financing needed to complete vital projects such as Ontario Court,” said Director Gambrell. “From the Tivoli Theater in Columbia Heights to the Giant grocery store in Anacostia, the New Markets Tax Credit Program is helping to transform many of our underserved neighborhoods. This is especially important during these troubling economic times when the need for affordable housing and affordable child care are so great."</p><p>The renovation transformed the Ontario Court into 27 new apartment homes: 6 one-bedroom units, 18 two-bedroom units, and 3 three–bedroom units. The ground floor will house the new 4,000-square-foot Jubilee JumpStart Early Childhood Development Center, which will serve up to 50 children between the ages of six weeks and five years, with full day, night or weekend child care to accommodate the schedules of many local parents who are employed in shift work.</p><p>The NMTC Program enabled Enterprise Community Investment, Inc. of Columbia Maryland, which has received a total of $515 million in NMTC awards from the CDFI Fund, to partner with PNC Bank, PNC New Markets Investment Partners and the District of Columbia’s Department of Housing and Community Development to structure the financing deal that made possible the redevelopment of the Ontario Court building.<br></p><p>Since the NMTC Program’s creation in December 2000, the CDFI Fund has made 17 awards totaling over $1.4 billion to eight institutions headquartered in Washington, DC. In addition, 37 different investments totaling over $144 million were made in projects, such as Ontario Court, across Washington, DC. These investments leveraged total project costs of $583 million in direct investments to build charter schools, residential for-sale housing, shopping centers, and other projects and businesses.<br></p><p>Background on the NMTC Program</p><p>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 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.</p><p>The NMTC Program is administered by Treasury’s CDFI Fund. In the six rounds to date, the CDFI Fund has made 364 allocation awards totaling $19.5 billion in tax credit authority, including $1 billion that was specifically set aside for recovery and redevelopment in the wake of Hurricane Katrina.</p><p>Additional information on the NMTC Program and the CDFI Fund can be found by visiting: <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.</p>2009-04-23T04:00:00ZPress Releases35
CDFI Fund's Strategic Initiativehttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=167CDFI Fund's Strategic Initiative<p>In July 2007, the CDFI Fund launched a two-year research effort to fund research projects of relevance to the CDFI industry. In October 2007, a total of twelve research projects were selected from more than 40 proposals that were received in response to the CDFI Fund’s Request for proposal. </p><p> As results of the conference panel discussions and peer review of the draft reports, significant changes were made to the draft reports, which are reflected in these final reports. The research reports developed under this initiative are briefly highlighted below. </p><p> The research projects covered a broad range of topics, including the interaction of CDFIs and the subprime mortgage market, CDFIs in underserved markets such as native communities, and the institutional development of CDFIs.</p><p> This research initiative provided the first opportunity for researchers to obtain access to and use data collected through the CDFI Fund’s Community Investment Impact System, or CIIS. Data are collected through CIIS on an annual basis by CDFIs who have received a monetary award, and until this time, had not been made available for research purposes to those outside of the CDFI Fund.</p><p> In June 2008, the CDFI Fund hosted a one-day research conference in Washington, DC, where researchers presented and discussed their draft reports with other researchers and practitioners, after which final edits were made. </p><p> The final research papers are available, by category, through the links below. </p><p> <strong>Overview </strong></p><ul><li> <a href="/Documents/Contents.pdf" target="_blank"> <img width="16" height="16" class="ms-asset-icon ms-rtePosition-4" src="/_layouts/15/images/icpdf.png" alt="" />Contents.pdf</a> </li><li> <a href="/Documents/Executive%20Summary.pdf" target="_blank">Executive Summary </a></li></ul><p> <strong>CDFIs and the Subprime Mortgage Market </strong></p><p> <a href="/Documents/The%20Role%20of%20CDFIs%20in%20Addressing%20the%20Subprime%20Mortgage%20Market%20A%20Case%20Analysis%20of%20New%20England.pdf" target="_blank">The Role of CDFIs in Addressing the Subprime Mortgage Market: A Case Analysis of New England </a> <em>by Carla Dickstein, Coastal Enterprises, Laura Buxbaum, Hannah Thomas and Kimberly McLaughlin </em></p><p> <a href="/Documents/An%20Analysis%20of%20Successful%20CDFI%20Mortgage%20Lending%20Strategies%20in%20Six%20Cities.pdf">An Analysis of Successful Mortgage Lending Strategies in Six Cities </a> <em>by Neil Mayer and Kenneth Temkin. </em></p><ul><li> <a href="/Documents/An%20Analysis%20of%20Successful%20CDFI%20Mortgage%20Lending%20Strategies%20in%20Six%20Cities%20-%20Tables%20B-1%20through%20B-5.pdf">Download: Tables B-1 through B-5 (.pdf) </a></li><li> <a href="/Documents/An%20Analysis%20of%20Successful%20CDFI%20Mortgage%20Lending%20Strategies%20in%20Six%20Cities%20-%20Tables%20B-6%20through%20B-9.pdf">Download: Tables B-6 through B-9 (.pdf)</a> </li><li> <a href="/Documents/An%20Analysis%20of%20Successful%20CDFI%20Mortgage%20Lending%20Strategies%20in%20Six%20Cities%20-%20Tables%20B-10%20through%20B-13.pdf">Download: Tables B-10 through B-13 (.pdf) </a></li><li> <a href="/Documents/An%20Analysis%20of%20Successful%20CDFI%20Mortgage%20Lending%20Strategies%20in%20Six%20Cities%20-%20Tables%20B-14%20through%20B-17.pdf">Download: Tables B-14 through B-17 (.pdf) </a></li><li> <a href="/Documents/An%20Analysis%20of%20Successful%20CDFI%20Mortgage%20Lending%20Strategies%20in%20Six%20Cities%20-%20Tables%20B-18%20through%20B-21.pdf">Download: Tables B-18 through B-21 (.pdf) </a></li><li> <a href="/Documents/An%20Analysis%20of%20Successful%20CDFI%20Mortgage%20Lending%20Strategies%20in%20Six%20Cities%20-%20Tables%20B-22%20through%20B-26.pdf">Download: Tables B-22 through B-26 (.pdf)</a> </li></ul><p> <a href="/Documents/The%20Role%20of%20Community%20Development%20Financial.pdf">The Role of CDFIs in Home Ownership Finance </a> <em>by Sarah Wolff, Self Help and Janneke Ratcliffe, UNC. </em></p><p> <strong>Community and Economic Development and CDFI Lending </strong></p><p> <a href="/Documents/Community%20Development%20Financial%20Institution%20Financing%20of%20Supermarkets%20in%20Underserved%20Communities%20-%20A%20Case%20Study.pdf">CDFI Financing of Supermarkets in Underserved Communities: A Case Study </a> <em>by Ira Goldstein, Cathy Califano, Lance Loethen and Edward Kako, TRF. </em></p><p> <a href="/Documents/Relationships%20between%20Community%20Development%20Financial%20Institutions%20and%20Conventional%20Lenders%20in%20Small%20Business%20Finance.pdf">Collaborators or Competitors? Examining the Relationship Between CDFIs and Mainstream Banks in Lending to Small Businesses in Underserved Markets </a> <em>by Geoff Smith, Sean Zielenbach, Jennifer Newon and Sarah Duda, The Woodstock Institute. </em></p><p> <a href="/Documents/The%20Experience%20of%20the%20New%20Hampshire%20Community%20Loan%20Fund%20in%20Mainstreaming%20of%20Acquisition%20Loans%20to%20Cooperative%20Manufactured.pdf">The Experience of New Hampshire Community Loan Fund in Mainstreaming of Acquisition Loans to Cooperative Manufactured Housing Communities</a> <em>by Michael Swack, University of New Hampshire, and Jolan Rivera, Southern New Hampshire University. </em></p><p> <strong>CDFIs in Rural and Underserved Markets </strong></p><p> <a href="/Documents/Community%20Development%20Financial%20Institutions%20and%20the%20Segmentation%20of%20Underserved%20Markets.pdf">Community Development Financial Institutions and the Segmentation of Underserved Markets</a> <em>by Spencer Cowan, Danielle Spurlock, Janneke Ratcliffe and Haiou Zhu, UNC. </em></p><p> <a href="/Documents/Community%20Development%20Venture%20Capital%20in%20Rural%20Communities.pdf">Community Development Venture Capital in Rural Communities</a> <em>by Julia Sass Rubin. </em></p><p> <a href="/Documents/Investing%20in%20Native%20Community%20Change%20-%20Understanding%20the%20Role%20of%20Community%20Development.pdf">Investing in Native Community Change: Understanding the Role of Community Development Financial Institutions</a> <em>by Sarah Dewees, First Nations, and Stewart Sarkozy-Banoczy, Oweesta. </em></p><p> <strong>Institutional Development of CDFIs </strong></p><p> <a href="/Documents/Approaches%20to%20CDFI%20Sustainability.pdf">Approaches to CDFI Sustainability</a> <em>by Kirsten Moy and David Black, The Aspen Institute. </em></p><p> <a href="/Documents/Riskiness%20of%20Sector%20Dependence%20In%20Community%20Development%20Financial%20Institutions.pdf">Riskiness of Sector Dependence in Community Development Financial Institutions</a> <em>by Victoria Salin and Yanhong Jin, Texas A&M, and Wenhua Di, Federal Reserve Bank of Dallas. </em></p><p> <a href="/Documents/Assessing%20the%20Systemic%20Impacts%20of%20Community%20Development%20Loan%20Funds.pdf">Assessing the Systemic Impacts of Community Development Loan Funds</a> <em>by Julia Sass Rubin, John P. Caskey, Carla Dickstein and Sean Zielenbach. </em> </p>2009-04-22T04:00:00ZUpdates167
Treasury's New Markets Tax Credit Program Provides Needed Jobs to Michiganhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=34Treasury's New Markets Tax Credit Program Provides Needed Jobs to Michigan<p>​<strong>Lansing, MI</strong> - The U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell traveled to Michigan this week on a two-day trip to highlight how the New Markets Tax Credit (NMTC) Program has provided needed jobs and revitalization to the Detroit and Lansing areas.</p><p>On Tuesday, Director Gambrell visited three NMTC investments in Detroit: a large-scale revitalization of a former General Motors building sponsored by the College for Creative Studies that has created over 210 construction jobs, 200 permanent jobs, and 300 new school seats; the University Preparatory Academy that has now expanded to a fourth campus creating 30 construction jobs and 27 permanent positions at the school; and TechTown’s 300,000 square foot business incubator where more than 70 businesses involved in public health, biobanking, life sciences, alternative energy, education, and advanced manufacturing are creating new economic opportunities and jobs in the Detroit area.</p><p>Today, Director Gambrell traveled to Lansing to participate in the grand opening celebration of a new flagship building for Peckham, Inc., along with Michigan Governor Jennifer Granholm and Lansing Mayor Virg Bernero. Peckham is a nonprofit organization that provides job training and job placement assistance for persons with disabilities or other barriers to employment.<br></p><p>"On this Earth Day, we are not only celebrating the grand opening of Peckham's new LEED (Leadership in Energy and Environmental Design) silver certified manufacturing facility that will enable it to continue helping thousands of Michigan residents with employment," said CDFI Fund Director Gambrell. "We are also clearly seeing first hand how the New Markets Tax Credit Program is helping communities obtain the needed financing to overcome barriers to employment by not only creating jobs, but also valuable training opportunities for the skilled workforce in this great state."</p><p>Peckham's new building consolidates all their Lansing-based manufacturing into one flexible manufacturing facility with additional space for offices, computer labs, and classrooms for new job training programs. This new facility will allow Peckham to grow and expand, offering an additional 200 to 300 jobs within the next 10 years. Over 75 percent of the people employed have a substantial disability, and because of Peckham they now have long-term employment and career advancement skills.</p><p>Since 2005, the NMTC Program has helped to create over 255,000 jobs across the nation, 18,000 in Michigan. Through the NMTC Program, the CDFI Fund has allocated a total of $102 million in tax credit authority to three Michigan awardees. In addition, a total of $154 million in NMTC capital was invested in 50 different projects across Michigan which leveraged total projects costs of $459 million in direct investments to build charter schools, residential housing, and a business incubator where people have the necessary tools and support to start their own businesses.</p><p> <strong>Background on the NMTC Program</strong></p><p>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 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.</p><p>The NMTC Program is administered by the U.S. Treasury Department’s CDFI Fund. In the six rounds to date, the CDFI Fund has made 364 allocation awards totaling $19.5 billion in tax credit authority, including $1 billion that was specifically set aside for recovery and redevelopment in the wake of Hurricane Katrina.</p><p>Additional information on the NMTC Program and the CDFI Fund can be found by visiting: <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.</p><p> <strong>Background on Peckham, Inc.</strong></p><p>Peckham, Inc. is a 501c(3) nonprofit organization and was founded in 1976 to provide job training and placement for persons with disabilities or other barriers to employment. It serves more than 6,000 local residents through various employment and life skills programs. Last year Peckham assisted 1,275 people obtain competitive employment. Peckham also employs nearly 2,000 daily in their manufacturing, business services, distribution and logistics and environmental services lines of business.</p><p>Additional information on Peckham, Inc. can be found by visiting: <a target="_blank" href="http://www.peckham.org/">www.peckham.org</a>.</p>2009-04-22T04:00:00ZPress Releases34
CDFI Fund Director Donna Gambrell Receives 2009 Community Reinvestment Awardhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=33CDFI Fund Director Donna Gambrell Receives 2009 Community Reinvestment Award<p> <strong>​Chicago, IL</strong> - U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell today was honored with the 2009 Community Reinvestment Award by the Chicago-based Woodstock Institute.</p><p>"I am honored to be named as one of the recipients of the Community Reinvestment Award,” said Director Gambrell. “While this award is in my name, I accept it in recognition of the exceptional men and women with whom I have had the privilege of working with over my career in community development, especially those here in the great state of Illinois."</p><p> The Community Reinvestment Award honors policymakers, community organizations, and financial institutions that have made outstanding contributions to community reinvestment in Illinois.</p><p>Past recipients of the Community Reinvestment Award include Chairman Sheila Bair of the Federal Deposit Insurance Corporation, Citizen Action of Illinois, Neighborhood Housing Services, the Office of the Comptroller of the Currency, and Shorebank.</p><p>The Woodstock Institute has hosted the Community Reinvestment Reception, the largest gathering of community reinvestment professionals in the Midwest, since 1990. In previous years, the award reception has attracted over 200 representatives of Chicago community-based organizations, advocacy groups, financial institutions, and banking regulators.</p><p> <strong>About the Community Development Financial Institutions Fund</strong></p><p>The CDFI Fund was created for the purpose of promoting economic and community development through investment in and assistance to community development financial institutions (CDFIs). The CDFI Fund’s role in promoting community and economic development was expanded in FY 2001 when the Secretary of the Treasury delegated to the CDFI Fund the responsibility of administering the NMTC Program.</p><p>Since its creation in 1994, the CDFI Fund has awarded $949.3 million to CDFIs, community development organizations and financial institutions through the Community Development Financial Institutions (CDFI) Program, the Bank Enterprise Award (BEA) Program, and the Native Initiatives. In addition, the CDFI Fund has allocated $19.5 billion in tax credit authority to CDEs through the NMTC Program. More information on the CDFI Fund and its programs can be found by visiting its website at www.cdfifund.gov.</p>2009-04-02T04:00:00ZPress Releases33

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