Civic Communities Receives $55 Million New Markets Tax Credit Allocation
Baltimore, MD – Treasurer of the United States Chief Lynn Malerba, joined by U.S. Senators Benjamin L. Cardin and Chris Van Hollen, U.S. Representative Kweisi Mfume, and Community Development Financial Institutions Fund (CDFI Fund) Director Jodie Harris, today announced more than $5 billion in New Markets Tax Credit (NMTC) awards nationwide. Speaking at the recently redeveloped Lexington Market […]
Civic Closes New Markets Tax Credit Investment of $6.7 Million for YMCA of San Diego County
Civic announced today the closing of a New Markets Tax Credit (NMTC) investment of $6.7 million for YMCA of San Diego County’s Youth & Family Services (YFS) with Chase Bank as the tax credit investor.
The New Markets Tax Credits investment finances the acquisition and rehabilitation of a 25-unit apartment complex in Escondido. The property will expand the YMCA’s existing Transitional Housing & Youth Development program and streamline the YMCA’s efforts to end youth homelessness. The complex includes 25 units, each with 2 bedrooms and 2 bathrooms and approximately 930 square feet of living space. In total, the project will serve 44 vulnerable, low-income youth aged 16-26 at any given point in time during the year, along with two staff member units.
“With the help of the New Market Tax Credits program and Civic, the YMCA of San Diego County will once again be able to answer the call for our most critical populations throughout San Diego County,” said Baron Herdelin-Doherty, President & CEO of the YMCA of San Diego County. “We couldn’t be more thrilled to extend our reach to nurture the potential of our young people, improve health and well-being, and give back to our neighbors.”
YMCA YFS plans to renovate the building to ensure a safe, clean, modern and aesthetically pleasing environment. Renovations include a new roof, window replacement, HVAC upgrades and extensive repair to the outdoor community spaces. The rehabilitation and 24/7 on-site supervision of the property, along with consistent upkeep will encourage community investment and lead to general redevelopment and economic renewal of the surrounding neighborhood community. The project is also expected to create/retain a total of 13.5 full-time equivalent jobs.
Within the Transitional Housing & Youth Development department, YMCA YFS provides homeless youth, ages 12-26, with immediate assistance and basic needs acquisition such as transportation and food, as well as long-term care in the form of supportive case management, living skills education and transitional housing for youth. All services are aimed at addressing the root causes of a youth’s homeless experience. By giving them the tools to develop independent living skills, economic stability, and long-lasting, supportive relationships for a sustainable transition to adulthood, these young people won’t have to rely on expensive public support systems.
“After working with the YMCA on their new facilities in City Heights and Southeastern San Diego, we are very excited to work with them once again on this project,” said Andrew Phillips, Interim President of Civic San Diego. “There is a real need for housing, particularly for San Diego’s most vulnerable and at-risk youth. We are very proud to be a part of YMCA’s efforts to serve homeless youth with essential services and transitional housing.”
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). The CDEs in turn use the capital raised to make investments in low-income communities.
To date, the Civic Economic Growth and Neighborhood Investment Fund (a CDE) has received and invested $133 million in tax credit allocation improving the quality of life of San Diego County’s underserved communities. Civic’s NMTC Program provides below market financing with flexible terms to support high impact projects located in underserved neighborhoods. Civic’s strategy is to provide NMTC loans that enable disadvantaged businesses to grow, create quality jobs, and deliver critical goods and services to San Diego County’s low-income residents. This can apply to different types of projects, including mixed-use, office, retail and health care.
Civic is actively working to identify qualifying projects to receive this type of investment.
To learn more about investment requirements and eligible communities criteria, or to present Civic with potential projects for NMTC funding, contact Joanna Whitley Broussard at whitley@civiccommunities.com.
