Award from CDFI Fund to Deliver High Social Impact in Florida’s Low-Income Communities.
Florida Community Loan Fund today announced it has received $65 million in New Markets Tax Credit allocation authority from the U.S. Department of Treasury Community Development Financial Institutions (CDFI) Fund. This award, the seventh for FCLF since 2003, is slated to deliver economic development and high social impact in distressed, low income census tracts around Florida.
The NMTC Award is important for Florida’s communities as it will fill financing gaps in projects that otherwise could not proceed. By targeting high social impact projects, such as community health centers, facilities serving homeless and other at-risk populations, and food access financing, the award helps fulfill FCLF’s overall mission. FCLF’s NMTC allocation secured to date totals $271 million from the U.S. Department of Treasury, with an additional $11.2 million having been received in NMTC from the State of Florida.
“We are excited about the impact that FCLF can have in Florida communities with this NMTC award,” said Ignacio Esteban, FCLF CEO. “We pride ourselves in being a consistent – and consistently reliable – source of capital and expertise. This award demonstrates the CDFI Fund’s confidence in our ability to provide capital, guidance, support and stability to the wide network of organizations that address the needs of Florida’s low income persons and communities.”
Over the past year, FCLF has invested in NMTC projects such as:
- Central Florida Health Care, Polk and Highlands Counties, reaching 5,000 more low-income patients in rural communities with 2 new and 2 renovated NMTC-financed local clinics;
- Cade Museum for Creativity and Invention, Gainesville, breaking down barriers to science and technology and connecting low-income youth to academic resources and mentorship;
- Lotus Village, Miami, providing shelter and a support system to homeless women, youth and children and doubling its former size with NMTC financing.
Nationally, the CDFI Fund has awarded a total of $7 billion in this round of NMTC awards to 120 organizations. This is the largest, single award round since the NMTC Program was created in 2001. Historically, NMTC awards have generated $8 of private investment for every dollar invested by the federal government. Since 2001, NMTCs have generated more than $42 billion in investments in low-income communities and businesses, resulting in the creation or retention of more than 500,000 jobs, and the construction or rehabilitation of more than 164 million square feet of commercial real estate.
Read the press release here.
Pictured: Central Florida Health Care recently held a ribbon cutting at its new clinic in Lake Wales, Florida; renovation of the building was financed through FCLF's NMTC Program.
About Florida Community Loan Fund. Florida Community Loan Fund is a nonprofit, multifaceted financing entity with a 20+ year history of providing flexible capital and expertise to low income communities across Florida. FCLF is nationally recognized for its work as a certified CDFI and CDE through the U.S. Dept. of Treasury and as a member of the Federal Home Loan Bank of Atlanta. FCLF has financed $250 million through 250 loans in Florida, making possible over $850 million in new investments in low-income communities, and has secured a total of $271 million to date in Federal NMTC awards. For more information, please visit www.fclf.org.
About the New Markets Tax Credit Program.The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities.
CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. The 120 organizations receiving awards were selected from a pool of 238 applicants that requested approximately $17.6 billion in allocation authority. To learn more about the New Markets Tax Credit Program, please view the program Fact Sheet or visit www.cdfifund.gov/nmtc.
About the CDFI Fund. Since its creation in 1994, the CDFI Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $1.1 billion has been guaranteed in bonds through the CDFI Bond Guarantee Program. To learn more about the CDFI Fund and its programs, please view the Fact Sheet or visit the CDFI Fund’s website at www.cdfifund.gov.