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New Markets Tax Credits News Briefs – June 2015

Journal of Tax Credits Volume 6 Issue 6
Monday, June 1, 2015

 

The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund released a notice of guarantee availability (NOGA), inviting qualified issuer applications and guarantee applications for the CDFI Bond Guarantee program. The NOGA serves to notify the public that parties interested in being approved as qualified issuers may submit qualified issuer applications and that qualified issuers may submit guarantee applications to be approved for a guarantee under the CDFI Bond Guarantee program. The NOGA also explains application submission and evaluation requirements and processes, and provides agency contacts and information. Qualified issuer applications must be submitted by June 5 and guarantee applications must be submitted by June 12. The NOGA is available at www.newmarketscredits.com.

 

The CDFI Fund is soliciting comments on an interim rule released April 10. The rule amends the CDFI certification regulation determining the participation of eligible community development financial institutions (CDFIs) in the CDFI Bond Guarantee program. The change creates a way for the CDFI Fund to permit a CDFI’s affiliate that applies for CDFI certification to rely on the controlling CDFI’s activity or track record in order to meet the financing entity requirement. Comments are due June 9. The notice is available at www.newmarketscredits.com.

 

Kingsley House held the groundbreaking for the development of the Patrick F. Taylor campus in New Orleans April 2. Kingsley House secured $8 million in NMTC equity from Chase Bank and the Low Income Investment Fund, as well as $2 million in financing from the Louisiana Office of Community Development for construction. Funding will go toward a new 24,000-square-foot facility that will be next to the organization’s historic campus. Development costs are expected to be $12 million. Kingsley House is a settlement house in the South and serves infants, children, youth, parents and the disabled and elderly.

 

Made in America Seating, a manufacturer of ergonomic office seating, announced March 12 the company’s goal of investing $39.5 million in its Union City, Tenn., operations. The company has secured close to $16 million in financing through a loan from SunTrust Bank and NMTC equity from SunTrust Community Capital and the National New Markets Fund. The NMTC allocation will allow Made in America Seating to purchase and install equipment and machinery, retrofit its 100,000-square-foot building and add an additional 32,000 square feet of office space. The company anticipates adding more than 500 new jobs. The first shipment from the facility is expected in July.

 

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