Last week, the Community Development Financial Institutions Fund (CDFI Fund) announced $5 billion in New Markets Tax Credit (NMTC) awards nationwide. We’re thrilled to announce that our partner, Community Housing Capital (CHC), has been awarded a $25 million NMTC allocation.
Since 2020, CHC has employed the NMTC program to support the development of affordable for-sale homes across the country. In 2021, the organization received its first award—a $30 million allocation and funded the following nonprofits’ homeownership projects:
- Avenue Community Development Corporation, Texas: $5 million
- Columbus Housing Initiative, Georgia: $6 million
- Dayton’s Bluff Neighborhood Housing Services, Minnesota: $7 million
- Neighborhood Housing Services of Baltimore, Maryland: $6 million
- Piedmont Housing Alliance, Virginia: $6 million
Bolstered by the NMTC program, CHC has empowered NeighborWorks America organizations to build more single-family homes, offer affordable mortgages, and provide financial counseling and homebuyer education.
The magnitude of this allocation creates significant new opportunities for homeownership, providing transformative opportunities for low- and moderate-income families across the country.
An Overview of the 2022 New Markets Tax Credit Awards
We also extend our congratulations to the 102 organizations that received $5 billion in NMTC allocation awards from the CDFI Fund this year. To date, the program has deployed over $62.9 billion in investments to low-income communities and businesses.
Of the $5 billion allocated, $60 million will be deployed to advance the work of CDEs like Community Housing Capital, providing affordable pathways to homeownership and the associated benefits for families and communities.
Historically, the NMTC program has generated $8 of private investment for every $1 of federal funding. To date, the program has deployed over $62.9 billion in investments to low-income communities and businesses. This year, approximately $877.5 million (18%) of NMTC investment proceeds will be used to finance and support real estate projects in low-income communities.
About Smith NMTC Associates
In 2007, Smith NMTC Associates pioneered the use of New Markets Tax Credits (NMTCs) for affordable homeownership development—transforming communities and the lives of families throughout the United States.
Today, we help CDEs and nonprofit developers leverage the NMTC program to increase access to for-sale affordable housing and community facilities.
We partner with mission-driven and like-minded organizations to expand the impact of NMTCs on affordable homeownership opportunities. We’d love to discuss how you can use the NMTC program to further serve your community and your constituents. Learn more about how we can help here.