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Treasury's New Markets Tax Credit Program Named One of Top 50 in the Innovations in American Government Awards Competitionhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=32Treasury's New Markets Tax Credit Program Named One of Top 50 in the Innovations in American Government Awards Competition<p> "Not only does the New Markets Tax Credit Program encourage the flow of low-cost and flexible private-sector investment into some of our country’s most economically distressed communities, but it also serves as a great example of how the public and private sectors can responsibly work together," said Treasury Secretary Timothy Geithner.</p><p>The CDFI Fund's data shows that for every $1 in foregone tax revenue under the NMTC Program, over $14 is being invested in important projects providing needed jobs and revitalizing these communities.</p><p> In addition to the leveraging of taxpayer resources, accountability to the public is an important aspect of the NMTC Program. Organizations that are selected through the merit-based application review must not only demonstrate that they are accountable to the communities they serve by including representatives from those communities on their governing or advisory boards, but they must also demonstrate their accountability to the American taxpayer. Organizations awarded New Markets Tax Credits must regularly report to the CDFI Fund the projects they are investing in, and they must meet certain financial and other performance goals or risk losing their allocation of tax credits. The CDFI Fund makes information on NMTC activities available to the public through annual reports made available to the public via its website.</p><p>"I am thrilled that the New Markets Tax Credit Program has been selected as one of the Top 50 Government Innovations in this year’s Innovations in American Government Awards competition,” said Donna Gambrell, Director of the CDFI Fund. “But I am even more pleased knowing that we are making a difference in today’s tightening market. The awards we make will foster the flow of critically needed credit, typically well below market and with responsible yet flexible underwriting, and will yield economic growth and create needed jobs that might not otherwise be possible in these low-income communities."</p><p> The Innovations in American Government Program is a significant force in recognizing and promoting excellence and creativity in the public sector. Through its annual awards competition, the Innovations in American Government Program provides concrete evidence that government can work to improve the quality of life for citizens. By highlighting exemplary models of local, state, and federal governments’ innovative performance, the Innovations in American Government Program serves as a catalyst for continued progress in addressing the nation’s most pressing public concerns. It is administered by the Ash Institute for Democratic Governance and Innovation at Harvard’s Kennedy School.</p><p> <strong>BACKGROUND</strong></p><p><strong>About the New Markets Tax Credit Program</strong> </p> <p>The NMTC Program, established by Congress in December of 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. Successful applicants are selected only after a competitive application and rigorous review process that is administered by the CDFI Fund.</p><p> Through the first six rounds of the NMTC Program, the CDFI Fund made 364 awards totaling $19.5 billion in tax credit allocation authority. The CDFI Fund anticipates awarding another $5 billion of allocation authority to CDEs in the fall of 2009, including the additional $1.5 billion in allocation authority authorized through the Recovery Act. More detailed information on the NMTC Program can be found by visiting the CDFI Fund’s website at <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.</p><p> About the Community Development Financial Institutions Fund<br>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 $864 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 <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.</p><p> About the Ash Institute for Democratic Governance and Innovation<br>The Roy and Lila Ash Institute for Democratic Governance and Innovation advances excellence in governance and strengthens democratic institutions worldwide. Through its research, publications, leadership training, global network, and awards program – developed in collaboration with a diverse, engaged community of scholars and practitioners - the Ash Institute fosters creative and effective government problem-solving and serves as a catalyst for addressing many of the most pressing needs of the world’s citizens. The Ford Foundation is a founding donor of the Institute. Additional information about the Ash Institute is available at www.ashinstitute.harvard.edu. Applicants for the 2009 Innovations in American Government Awards are encouraged to apply at<a target="_blank"> www.innovationsaward.harvard.edu</a>.</p>2009-03-31T04:00:00ZPress Releases32
CDFI Fund Awards $2.3 Million in Technical Assistance Grants Through the FY 2009 CDFI Programhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=29CDFI Fund Awards $2.3 Million in Technical Assistance Grants Through the FY 2009 CDFI Program <p>​<strong>Washington, DC</strong> - Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell today announced that $2,363,917 in Technical Assistance grants are being awarded to 27 organizations working in economically distressed communities across the country. These awards are being made through the fiscal year (FY) 2009 round of the <br>CDFI Program – Technical Assistance Component.</p><ul><li> <a href="http://www.treasury.gov/press-center/press-releases/Pages/hp1207.aspx">Press Release</a></li><li> <a target="_blank" href="/Documents/2009%20CDFI%20Technical%20Assistance%20Highlights.pdf">Highlights of Award Round</a></li><li> <a target="_blank" href="/Documents/2009%20CDFI%20Technical%20Assistance%20Awardee%20List.pdf">List of Institutions Awarded</a></li><li> <a target="_blank" href="/Documents/2009%20CDFI%20Technical%20Assistance%20Awardee%20Profiles.pdf">Profiles of Institutions Awarded</a></li><li> <a target="_blank" href="/Documents/2009%20CDFI%20Technical%20Assistance%20Award%20Booklet.pdf">2009 CDFI Program, Technical Assistance Component, Award Booklet</a></li></ul>2009-03-26T04:00:00ZPress Releases29
CDFI Fund Awards $2.3 Million in Technical Assistance Grants Through the FY 2009 CDFI Programhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=30CDFI Fund Awards $2.3 Million in Technical Assistance Grants Through the FY 2009 CDFI Program<p><strong>Washington, DC</strong> - Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell today announced that $2,363,917 in Technical Assistance grants are being awarded to 27 organizations working in economically distressed communities across the country. These awards are being made through the fiscal year (FY) 2009 round of the CDFI Program – Technical Assistance Component.</p><p>In an effort to increase the access to capital in low-income communities, the CDFI Fund announced the FY 2009 Technical Assistance awards in advance of the FY 2009 Financial Assistance awards, and five months earlier than the award announcement in FY 2008.</p><p>"It is a significant accomplishment for the CDFI Fund to announce these awards as early as we are this year," said Director Gambrell. "We recognize the economic challenges facing CDFIs, and the growing demand from low-income Americans for the financial services and products they provide. In order to expedite the flow of critically needed resources into low-income communities, the CDFI Fund has implemented new operating procedures that have enabled us to expeditiously administer this vital program."</p><p>The CDFI Fund intends to make two additional award announcements related to the FY 2009 round of the CDFI Program – Financial Assistance Component. The first announcement will be made in June 2009, when all $90 million of funding received through the American Recovery and Reinvestment Act of 2009 (the Recovery Act) will be awarded. The second announcement will be made by September 2009, when over $50 million of FY 2009 annual appropriations will be awarded.</p><p>The Technical Assistance awards announced today are being made with FY 2009 annual appropriations, not Recovery Act funds.</p><p> Key Statistics</p><p></p><ul><li>21 out of 27 were first-time awardees to the CDFI Program;<br><br></li><li>16 states, the District of Columbia, and the territory of Puerto Rico are represented in the award pool;</li><li>13 awardees primarily serve major urban markets, 7 primarily serve minor urban markets and 7 primarily serve rural areas;</li><li>19 loan funds, 3 credit unions, 3 depository institutions/holding companies, and 2 venture capital funds were selected.</li></ul><p>Background – CDFI Program - Technical Assistance Component</p><p>Through the CDFI Program, the CDFI Fund invests in and builds the capacity of private, for-profit and nonprofit community-based lending organizations known as Community Development Financial Institutions (CDFIs) that serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services.</p><p>Specifically, through the Technical Assistance Component of the CDFI Program, the CDFI Fund provides grants to start-up and existing CDFIs, helping them build their organizational capacity to serve their target markets. Both certified and non-certified CDFIs are eligible to apply for Technical Assistance grants; non-certified organizations must meet CDFI certification requirements within two years.</p><p>Technical Assistance grants can be used for multiple purposes, including purchasing equipment, materials, supplies, and consulting and/or contracting services. They can also be used to pay for certain personnel salaries/benefits and to train staff or board members. Established CDFIs often use Technical Assistance grants to build their capacity to provide new products, serve current markets in new ways, or enhance the efficiency of their operations. Newer CDFIs often use their Technical Assistance grants to undertake market studies, develop underwriting policies, and purchase computer equipment.</p><p>For more information on the CDFI Program, please visit <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.</p>2009-03-26T04:00:00ZPress Releases30
Director Gambrell Joins Virginia Governor Kaine at Grand Opening of Richmond, VA Redevelopment Projecthttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=31Director Gambrell Joins Virginia Governor Kaine at Grand Opening of Richmond, VA Redevelopment Project<p>​<em>New Markets Tax Credit Program Provides Needed Jobs and Revitalizes Downtown Richmond</em><br><br><strong>Richmond, VA</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 Virginia Governor Timothy M. Kaine.</p><p>The 200 year old Miller & Rhoads Department Store in downtown Richmond, Virginia had long been vacant. After a redevelopment project in excess of $100 million that converted the historic property into a mixed use project, the building is reopening as a facility that will help revitalize the area by attracting an invigorating stream of people and businesses.<br><br>"Today's celebration of the redevelopment of our beloved Miller & Rhoads Building is thanks in large part to the U.S. Treasury Department’s New Markets Tax Credit Program,” said Governor Kaine. “Not only did the program help attract private-sector financing that was key to funding the renovation of one of Richmond’s true historic gems—the program has boosted our economy by creating hundreds of jobs for Virginians."</p><p>The transformation of the Miller and Rhoads Building created 500 construction jobs and will lead to 170 permanent jobs in Richmond. The eight-story vacant property will now house 250 hotel rooms, 133 condominiums targeted to first-time homebuyers and approximately 21,000 square feet of street-level commercial space.</p><p>"New Markets Tax Credits are frequently the critical piece of financing needed to complete vital real estate development projects and fund businesses in rural and urban low-income communities,” said CDFI Fund Director Gambrell. “I am very pleased that the use of the tax credit has resulted in the creation of valuable jobs, services, and economic opportunities for the residents of Richmond and the Commonwealth of Virginia."</p><p>The NMTC Program enabled three organizations that received NMTC awards from the CDFI Fund to work together to structure a deal that closed the financing gap that was critical to the redevelopment of the Miller & Rhoads Building. The three award recipients are: Hampton Roads Ventures, LLC of Norfolk VA, 123 New Market Investors, LLC of Great Falls, VA; and National Cities Fund, LLC of new Orleans, LA.</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 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: www.cdfifund.gov.</p>2009-03-26T04:00:00ZPress Releases31

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