Our Year in Review: Over $63 Million in New Markets Tax Credits

As we reflect on another year of deploying New Markets Tax Credits (NMTCs) in low-income communities to support economic development, our company is especially grateful to partner with mission-driven organizations across the country on transformative projects that reinvest in historically disinvested and underserved areas, resulting in data-driven positive impacts for neighborhood residents and the communities beyond.

Increasing Access to Affordable Homeownership

In 2024, the Smith NMTC team facilitated 5 closings deploying over $63 million in NMTC allocation for 8 projects across 7 states! The success of this past year builds on 16 years of experience in NMTCs. Since 2008, Smith NMTC has deployed over $780M in NMTC allocation to fund 161 projects in over 32 states—including $631.5 million for affordable homeownership that has resulted in over 5,500 homes.

The following homeownership projects closed in 2024: a total of $42,250,000 in NMTC-funded loans will finance the development of 160 homes with 78% of project homes being sold to low-income households earning 80% AMI or below.

• City of Bridges Community Land Trust in Pittsburgh, Pennsylvania
  (CDE: Pittsburgh Urban Initiatives; Investor: U.S. Bancorp Community Development Corporation)
• One of the CDEs managed by Smith NMTC, Community Housing Capital, deployed its second award of NMTC allocation authority through a single multi-QALICB closing in March with American Express NMTC Homeownership Fund serving as investor, expanding the work of these high-performing nonprofit developers:
  • Affordable HomeMATTERS in Indianapolis, Indiana
  • Corporation to Develop Communities of Tampa in Florida
  • Comite de Bien Estar in San Luis, Arizona
  • Neighborhood Housing Services of Balitmore in Maryland
• Twin Cities Habitat for Humanity affiliate Habitat Heights LLC in Minnesota (CDEs: Habitat for Humanity International & USBCDC LLC; Investor: American Express NMTC Homeownership Fund, LLC), as part of HFHI’s annual Jimmy & Rosalynn Carter Work Project.
  (aerial photo of site pictured at top of blog post)

In addition to addressing the critical shortage of affordable homes available for purchase, these projects support neighborhood stabilization, address racial inequity in homeownership, and expand wealth-building opportunities for low- to moderate-income families.

Expanding Community Services

NMTC closings facilitated by the Smith NMTC continued to benefit the St. Louis community in 2024: Operation Food Search (CDE: STL Partnership; Investor: U.S. Bancorp Community Development Corporation) and Urban League of Metropolitan St. Louis (CDE: St. Louis Development Corporation; Investor: U.S. Bancorp Community Development Corporation) are expanding their services with renovations to their respective headquarters with NMTC-funded loans.

Good News for Homeownership: 2023 NMTC Awards Announced

In September, the CDFI Fund announced awards for the 2023 NMTC application allocation round. Both Community Development Entities (CDEs) managed by Smith NMTC—Community Housing Capital and The Housing Partnership Network—received allocation authority: $40 million and $60 million, respectively. Combined with the award Habitat for Humanity International received, a total of $135 million in NMTC allocation was awarded to exclusively homeownership-focused CDEs—almost 3% of the total $5 billion of NMTC authority for the 2023 round, and the largest amount to date!

Homeownership is a key driver of economic development through construction jobs, state and local taxes and fees, and providing homes for the workforce—these awards help to highlight why homeownership is a worthwhile investment.

Read more about CHC’s $40M award and HPN’s $60M award…

Educating about the Power of NMTCs for Homeownership

Throughout the year, our team advocated for more homeownership developments by engaging in conversations about the power and potential of utilizing New Markets Tax Credits for affordable homeownership projects.

In April, we hosted over 70 industry professionals for a webinar that covered how Community Development Entities can deploy NMTCs for affordable homeownership projects. The presentation is available on-demand and includes an in-depth look at the financial model for homeownership deals.

Executive Vice President Donna Smith presenting to community housing developers participating in Raza Development’s J. Tommy Espinoza Fellowship in September, the fellowship is a component of Wells Fargo’s Growing Diverse Housing Developers Program.

Our team had the honor of presenting at several events throughout the past year, highlighting the benefits of using NMTCs to support affordable homeownership development including:

• Using NMTCs to Build Housing panel at Novogradac’s Fall New Markets Tax Credit Conference
• Harnessing New Markets Tax Credits to Drive Affordable Homeownership panel at Opportunity Finance Network’s Conference #OFN40
• Spring Member Meeting in Seattle of The Housing Partnership Network, Inc.
• Innovative Housing Development & Design panel at The Florida Redevelopment Association’s Annual Conference
• The Secrets of New Market Tax Credits in Middle Neighborhoods webinar from NCST’s Middle Neighborhoods Initiative
• Federal Advocacy panel at National Community Stabilization Trust’s Homeownership Policy Symposium  (click here to watch panel recording)

The entire Smith NMTC team attended the wall-raising at a St. Louis Art Place Initiative home in the Gravois Park neighborhood that is part of a 19-home project of Habitat for Humanity Saint Louis that we closed in 2023 with SLDC.

Thankful for Teamwork

We welcomed Jessica Horner and Jasmine Peete to our small-but-mighty team in May. Both bring extensive relevant experience and have already made important contributions in support of our nonprofit clients.

Creative Solutions for Innovative Financing

Smith NMTC Associates, LLC works with mission-driven organizations throughout the country to develop creative financial models and structures for projects that bring economic development through affordable homeownership and community facilities and services to low-income communities and their residents.

Learn more about our work and get in touch…