The New York City-based Nonprofit Finance Fund has announced that it has received $60 million in federal New Markets Tax Credits to support community development projects in low-income areas.
NFF will use the credits to help nonprofits finance the kind of facility projects that have proven difficult to fund in the current economic climate. With the latest allocation, NFF has received a total of $130 million in NMTCs over the past three years to help fund high-impact projects involving acquisitions, substantial renovations, leasehold improvements, and the construction of community spaces such as charter schools, health clinics, community centers, and arts and cultural spaces.
The U.S. Treasury Department's NMTC program provides investors with tax credits totaling 39 percent of the total financing costs for traditionally hard-to-finance projects over a period of seven years.
"For many nonprofits — particularly those providing critical social services — demand has risen sharply and shows no signs of slowing," said Norah McVeigh, NFF managing director of financial services. "The tax credits will help attract investments in the infrastructure needed to support nonprofits' work in communities hard-hit by economic turmoil."