New Market Tax Credits
Created by Congress in 2000 as a tool to stimulate economic development in low-income communities, the New Markets Tax Credit (NMTC) program is the premier government program supporting community development, as well as an invaluable City First community resource. Since 2003, City First has used this large-scale, flexible financing tool to achieve $370 million in tax credit authority through five rounds of competition, and generate an additional $233 million in private financing to recipient development projects.
The innovation and efficiency of the NMTC Program propelled it into the ranks of the government’s top 50 programs in 2008. Administered by the Community Development Financial Institutions (CDFI) Fund of the U.S. Department of the Treasury, NMTC offers City First the capacity to subsidize large projects by leveraging multiple sources of debt and investing equity that permanently attaches to the project.
Using NMTC, City First has financed significant economic development projects, helping to transform neighborhoods and communities throughout the Washington, DC region and beyond. Through the NMTC program, which surpasses commercial lending limits, City First has facilitated investments of up to $25 million each in high impact projects with substantial, long-term benefits to low-income communities. Most NMTC customers are nonprofit organizations that build, own, and occupy their facilities, ranging from health clinics to charter schools and from recreation and educational facilities to arts and performance venues.