October 30, 2009
CARDIN, MIKULSKI ANNOUNCE MARYLAND ORGANIZATIONS TO RECEIVE $185 MILLION IN NEW MARKETS TAX CREDITS
Credits will inject capital and credit into underserved Maryland communities
WASHINGTON, D.C. - U.S. Senators Benjamin L. Cardin and Barbara A. Mikulski (both D-Md.), today announced six Maryland organizations have been awarded New Markets Tax Credits (NMTC)'s totaling $185 million as part of a $5 billion total investment in NMTCs across the nation. The NMTCs will help inject capital and credit into underserved populations and communities across America. Funding for NMTCs was included in the Economic Recovery Act.
"I am pleased that the Obama Administration keenly recognizes that additional capital and credit is needed to stimulate jobs and future development, particularly in low-income communities," said Senator Cardin, a member of the Senate Budget Committee. "These awards are targeted to create the economic growth that is needed to pull us out of this recession."
"Today's announcement is good news for Maryland. These tax credits will provide investments in communities that are often overlooked and underserved - investments that will help finance community development projects, stimulate economic growth and create jobs. This will create real opportunities to change lives and transform communities," said Senator Mikulski, a senior member of the Appropriations Committee.
The following Maryland organizations have been selected to receive an allocation of tax credits under the NMTC program:
· CDF Development, LLC - $50 million. CDF Development, LLC (CDF) is focused primarily on distressed urban districts. Its business strategy is to provide loans and equity investments to increase the number of developments of large-scale retail and mixed-use projects in low-income communities.
· Community Development Funding, LLC - $10 million. Community Development Funding, LLC, will invest in not-for-profit faith and community-based organizations seeking to establish new facilities nationwide.
· Harbor Bankshares Corporation (HBC) - $20 million. HBC will use its NMTC allocation to continue its participation in the holistic redevelopment of the greater Baltimore metropolitan area in conjunction with state and city agencies, private developers, and other community stakeholders. Typical investments will be for the development and/or rehabilitation of commercial real estate (including office, retail, and mixed use space), workforce and affordable housing, and community facilities.
· Mid-City Community CDE, LLC - $60 million. Mid-City Community CDE, LLC's (Mid-City) business strategy is to provide flexible and subsidized equity and debt for the acquisition, development or renovation of commercial, mixed-use and community facility projects. Mid-City will also serve as a mentor to smaller project sponsors that work in highly distressed communities and are being left behind as a result of the current economic crisis.
· Urban Action Development Community, LLC - $15 million. Urban Action Community Development, LLC (UACD) provides financial products and services for communities where visions of neighborhood transformation are stymied by a lack of access to capital. The developments in UACD's pipeline are all part of comprehensive neighborhood transformation programs and are designed to provide local retail and other services, while simultaneously creating a mix of affordable and market-rate housing, community facilities and business space.
· Urban Research Park CDE, LLC - $30 million. Urban Research Park CDE, LLC (URP) provides flexible financial products to catalytic educational, medical, industrial and technical research center real estate projects in highly distressed low-income communities throughout the nation. URP also provides financial support to local non-profit partners to ensure that the benefits of the real estate investments flow to low-income community residents through job-training programs, job placement programs, business capacity building programs, and other direct support programs.
The NMTC program helps provide capital, credit and financial services to underserved populations and communities in the United States.
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