International Business Times - November 4, 2008
National New Markets Fund Awarded $50 Million Tax Credit Allocation to Invest in Low-Income Communities
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LOS ANGELES, CA -- (Marketwire) -- 11/04/08 -- National New Markets Fund, LLC (NNMF) -- a tax credit equity fund created by Los Angeles-based Strategic Development Solutions (SDS) and Boston-based Economic Innovation International -- has been awarded a $50 million New Markets Tax Credit (NMTC) allocation by the U.S Treasury Department to finance real estate development in low-income communities. With this latest award, SDS and Economic Innovation currently manage more than $125 million in New Markets Tax Credits through their jointly managed National New Markets Fund (the "Fund").
After a competitive selection process that included 239 applicants from across the U.S., the SDS/Economic Innovation Fund was among 70 organizations chosen by the Treasury Department to receive tax credits under this year's round of allocations. The Fund is designated to finance projects nationwide, and has thus far helped develop projects throughout the South, GO (Gulf Opportunity) Zone and the Pacific Northwest. These include the following five projects: 1) the historic King Edward Hotel (Jackson, Mississippi), which has been shut down for more than 40 years; 2) the Oschner Baptist Medical Center, which provides critical medical services to medically underserved New Orleans residents; 3) the National World War II Museum, which is a major economic driver in New Orleans given the military/veteran tourism it spurs: 4) the Mercy Corps World Headquarters in Portland, Oregon, which is striving for Gold or Platinum LEED certification and will house the organization's global operations; and, 5) the Hammond Square Mall (Hammond, Louisiana), which provides retail services and jobs to many of New Orleans' dislocated residents. The Fund's investment in each of these projects has ranged from $3.25 million to $15 million. Other investment projects currently in the closing process include four highly-impactful developments in Louisiana, San Francisco's Mission District and downtown Los Angeles. With its latest tax credit allocation,SDS and Economic Innovation are reviewing opportunities for investment inlow income communities across the U.S.
This year marks the sixth round of the Treasury Department's NMTC program,which was established by Congress in December 2000. Prior to the $50 million it was awarded during the latest allocation round, the SDS/Economic Innovation Fund received allocations of $25 million in round four and $50 million in round five, for a total of $125 million in tax credits.
"This allocation will enable NNMF to continue funding much needed projects that positively impact distressed and underserved communities," said SDS President and CEO Deborah La Franchi, who serves as co-founder and President of the National New Markets Fund. "We're well positioned to provide a source of critical financing that can help create jobs and stimulate economic growth in very low-income communities."
Belden Hull Daniels -- co-founder and CEO of NNMF and CEO of Economic Innovation International, the controlling entity for the NNMF added, "New Market Funds are used to achieve important social, environmental and economic objectives that can reinvigorate entire communities."
The New Markets Tax Credits (NMTC) program is administered by the U.S.Treasury Department's Community Development Financial Institutions (CDFI) Fund. The program was created with the specific intent of financing extremely challenging economic development projects in low-income communities. It encourages such financing by providing tax incentives to private-sector investors who make equity investments in targeted developments and business ventures. The program was recently extended by Congress to facilitate a new round of allocations in 2009.
About the National New Markets Fund
Deborah La Franchi of Strategic Development Solutions (SDS) and Belden Hull Daniels of Economic Innovation International, Inc. co-founded the National New Markets Fund (NNMF) to invest in development projects that serve low-income communities. The Fund is operated by SDS in partnership with Economic Innovation, and has received $125 million in new market tax credits from the federal CDFI Fund. Past investments have helped finance projects throughout the South, GO (Gulf Opportunity) Zone and the Pacific Northwest. Current and future investments will impact low-income communities across the U.S. Visit http://www.sdsgroup.com/nnmf-project-list.html for more information on specific NNMF investment projects.
About Strategic Development Solutions
Strategic Development Solutions (SDS), founded in 2001 by Deborah La Franchi, is a market leader in the creation of Double and Triple Bottom Line private equity and real estate funds. SDS (www.sdsgroup.com) and Economic Innovation have built more than $2 billion in mission related investment funds that do 'good' and do 'well' by providing: superior market rates of return to investors (1st Bottom Line), positive social impacts (2nd Bottom Line) and environmental sustainability (3rd Bottom Line).Strategic Development Investments (SDI) is a wholly-owned SDS subsidiary. As an independent, SEC-registered investment adviser, SDI (www.sdifunds.com) manages domestic and international Triple Bottom Line public equity products that meet the mission-related investment goals of institutional investors.
About Economic Innovation International, Inc.
Founded by Belden Hull Daniels in 1970, Economic Innovation International is recognized internationally for building more than $100 billion of privately capitalized, innovative institutions that generate measurable wealth and high quality jobs for residents of targeted communities in North America, Europe and Asia. In the last decade, Economic Innovation in partnership with SDS has pioneered the creation of the Double and Triple Bottom Line private equity investment industry, which now has more than $20 billion of capital under management in this country and overseas. More information is available at www.economic-innovation.com
Contact:
Erik Deutsch
Strategic Development Solutions
(323) 851-2300 x112
Email: erikd@excelpr.com