The US. Treasury Department Thursday awarded Housing Vermont $35 million in New Markets Tax Credits (NMTC). Housing Vermont was one of 87 organizations nationally to share in $3.5 billion in the current round of awards which will be the last awards unless Congress votes to extend the program. Awards ranged from 515 million to $60 million.
"Our NMTC program has already financed nine community development projects including new state office buildings in Barre and St. Albans, the expansion of the Commonwealth Dairy in Brattleboro and Weidmann Technology in St Johnsbury, as well as a new Rutland campus for Vermont Community College," said Housing Vermont President Nancy Owens. “[Thursday’s] award will allow us to respond to a strong pipeline of community projects."
This is the fourth award to Housing Vermont’s NMTC program which is operated by Vermont Rural Ventures, a wholly owned subsidiary. Thursday's announcement brings the organization’s total NMTC awards to $140 million.
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 investment vehicles known as "Community Development Entities." The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. A majority of the taxpayers' investments must in turn be used by the CDE to make qualified investments in low-income communities.
"The New Markets Tax Credit Program creates jobs and critical investments in low-income neighborhoods and rural communities across the nation," said Amias Gerety, Acting Assistant Secretary for Financial Institutions. "Often the New Markets Tax Credit is the most critical piece of the puzzle when trying to finance important economic development projects across the country. Its ability to attract private-sector capital into some of the most economically distressed and underserved communities is a hallmark of this important economic development program."
CDES must apply annually to Treasury to compete for New Markets Tax Credit Program allocation authority. The 87 organizations receiving awards were selected from a pool of 310 applicants that requested over $25.9 billion in allocation authority. They are headquartered in 32 different states and the District of Columbia, and they have identified principal service areas that will cover nearly every state in the country and the District of Columbia.
"Our housing development activities helped us to appreciate the connections between affordable housing and economic development," Owens said. "We look forward to building on that experience to advance more community and commercial projects."
Housing Vermont is a private, nonprofit development company founded in 1988 to produce permanently affordable rental housing for Vermonters through partnerships with communities and the private sector. Since its inception, Housing Vermont has raised and deployed $280 million in private equity to finance 161 affordable rental housing developments throughout the State and construct or renovate 4,826 apartments. In 2010, Housing Vermont launched its New Markets Tax Credit (NMTC) program to support investment in the economic, environmental, and social well-being of Vermont communities. NMTC funds are used to retain and create jobs for Vermonters by financing key community developments in downtown and village centers and in other concerted community efforts which demonstrate positive impacts on Vermont’s economic, health care, energy and food systems. Housing Vermont has used the New Markets Tax Credit program to provide favorable financing in excess of $76 million for nine economic development projects in low income areas. For more information see www.hvt.org.
Burlington 6.5.2014 Housing Vermont