FCLF Submits Comments on House Tax Extender Hearing

09 May 2012

NMTC Project ASPIRA School, MiamiOn April 26, 2012, the House Select Revenue Subcommittee held a members hearing on the tax extenders.FCLF has submitted written testimony to the committee, which appears below.


The Florida Community Loan Fund (FCLF) was among the first community development financial institutions to be certified in Florida by the U.S. Department of Treasury, and the first Florida based CDE to secure NMTC. FCLF is the only statewide CDFI in Florida and currently holds over $120 million in assets under management. FCLF’s three commercial lending programs focus on economic and community development, preservation of affordable multi-family rental housing, and New Markets Tax Credits.

In addition, FCLF is a member of the National New Markets Tax Credit Coalition and a 4 time recipient of federal New Markets Tax Credits. To date we have been competitively awarded $111 million in NMTC and financed 9 NMTC projects: a limestone mining reclamation project, a wood torrefaction plant, 3 charter schools, a bio-medical research park, a prototype solar cell energy manufacturing facility, an adult day care and medical facility, and a health and human services campus and medical facility.

FCLF’s New Markets Tax Credit projects will help create over 2500 jobs to support Florida’s economic recovery.

Included in the following pages are:

  • FCLF Statewide Impact Map, depicting the scope of our general lending and the increased impact of the NMTC projects we have financed;
  • Summary descriptions of FCLF’s 9 New Markets Tax Credit projects;
  • December 2011 Support Letter from the National NMTC Coalition requesting extension of the program, and a list of organizations in Florida who signed on to the letter;
  • Contact information for Florida Community Loan Fund NMTC projects.

New Markets Tax Credits have become a line of business upon which our borrowers and investors rely. Consistent with national experience, our use of NMTC has leveraged $12 in private capital for every one dollar in credit. The credit itself (39% spread over 7 years) is relatively shallow. In some states, as is the case in Florida, the federal credit has been used to stimulate even more business development by combining it with state NMTC programs which parallel the federal credit in order to provide an even more robust incentive for economic development and business growth.

At this moment in time, when capital is so hard to come by, it is not surprising that there is tremendous demand for NMTC. Since the first allocation in 2003, demand for NMTC has exceeded $225 billion compared to the $33 billion in credit availability. In the case of the Florida Community Loan Fund we have a current estimated pipeline of over $300 million in project requests representing more than ten times the amount of our current $30 million allocation – all of which are capable of closing within the next 12 months.

Just as important as the demand is the impact that NMTC has had on economically distressed communities. Billions of dollars have flowed to communities traditionally left out of the investment mainstream and hard hit by the recession. In the case of the Florida Community Loan Fund, all 9 NMTC projects significantly benefited high poverty areas with unemployment rates of 2.2 times the national average, and average household income at 55% of the area median.

In light of the current demand for capital and the credit’s proven ability to stimulate economic development, the time is now for Florida to benefit from NMTC. In our experience, interest in NMTC in Florida is at an all time high. As soon to be the third most populous state in the country, Florida is on the verge of a slow but critically important economic recovery - one that involves building, expanding and attracting both existing and new businesses. The importance of NMTC to these businesses and their ability to grow is tremendous. Capital markets have gained confidence and experience with the credit. Businesses have been able to expand and grow because of the credit. As a result, we believe NMTC is poised to connect capital markets and businesses at precisely the right moment and in precisely the right fashion to help bring the economy out of recession. To fail to extend the NMTC program would be to rob Florida and Florida businesses of these opportunities.

Florida community reinvestment districts, city, county and state government, business leaders and financial institutions throughout the state support the extension of NMTC and have signed on to support letters requesting the extension of the program (see included list). Florida state government has also just recently renewed and increased its support for its own state new markets tax credit program which has frequently been paired with federal credits to provide added incentives for attracting and growing businesses.

We are urging Congressional leaders to recognize and support the tremendous power of federal NMTC. NMTC significantly help to re-invigorate the business climate because they drive private capital demand and harness the power of the private sector. We, like other allocatees, are currently experiencing a virtual frenzy of demand for these credits and our pipeline of potential projects is tremendous.

Without a reauthorization we fear that private investors and capital will decline as the availability and certainty of the credits linger in question.

Moreover, we believe the performance of the credit nationwide also warrants making it a permanent credit. We urge you to consider this now and as part of any future tax reform effort.


For additional information on the Tax Extender Hearing, visit the NMTC Coalition website. You may also review a video of the hearing, in which several members of Congress expressed their support of the New Markets Tax Credit.

"FCLF has a keen knowledge of Florida challenges & opportunities. We are confident our investment will be used to improve lives." – Kathleen Rizzo Young, Sr. VP, Community Development

HSBC Bank USA, N.A.

“Expanding our facility with NMTC financing provides the Overtown community resources necessary to provide a fighting chance to break down barriers and break the cycles of poverty.” – Tina Brown, CEO

Overtown Youth Center

“The collaboration with FCLF and using NMTC financing allows us to bring the most ambitious projects to life to benefit the communities we serve.” – Elodie Dorso, President & CEO

Community Health Centers of Pinellas

“FCLF is much more than a financing entity; they are the ultimate partner. They are on the front line protecting and building resources for the most vulnerable in our community."– Seth Eisenberg

Purpose Built Families Foundation

"BankUnited understands the challenges facing our communities; we applaud FCLF's efforts. Thank you for making our community a better place to live." – Katrina Wright, VP Comm. Dev.

BankUnited

"The Fathers Table Foundation appreciates the services FCLF provides and the impact on the communities you serve. We believe in your organization and your mission." – Dan Gilardi, President

Fathers Table Foundation

"We commend the important work of your organization, are glad to support its efforts." – Beverly Dabney

JPMorgan Chase Foundation

"Trinity Health is happy to partner with FCLF. We look forward to seeing the impact in the communities you serve." – Sr. Kathleen Coll, SSJ, Administrator, Shareholder Advocacy

Trinity Health

“Thanks to FCLF we’re able to provide brand-new safe, affordable homes for 90 families in a sustainable mixed-use, mixed-income community." – Mitchell Rosenstein, Founder & Principal

Green Mills Group

"It is really working. FCLF is really touching low-income people." – Florida Community Loan Fund Founding Board Member

Sister Mary Heyser, RSHM

“FCLF will help us have significant ongoing impact in West Lakes as we help families set roots in this community.” – Camille Reynolds, Executive Director

Hannibal Square CLT

“We cannot thank FCLF enough for this partnership, creating permanent housing for our neighbors in need, and their commitment to Florida communities.” – Shannon Nazworth, President & CEO

Ability Housing

"Aida Palms will be a lasting asset to the City of Lakeland. This revitalization wouldn't be possible without financing partners like FCLF." – Mitchell Rosenstein, Principal, Green Mills Group

Aida Palms

"We appreciate the accomplishments your organization attains." - Robert Sucher, Executive VP

Sabadell United Bank

"We consider FCLF a valued partner and strong advocates for low-income communities and families. We look forward to many more years of working together." – Jennifer Westerbeck, Vice President

US Bancorp CDC

"We're thrilled to partner with FCLF to make our project a reality to serve generations of kids in our community." – Dawn Stanhope, President & CEO

Boys & Girls Clubs of Manatee County

“FCLF addresses local community needs, which aligns with our core values. We appreciate your commitment to our communities.” – Mellissa Slover-Athey, Comm Reinv Ofcr

CenterState Bank

"FCLF demonstrates a mission-oriented philosophy that is compatible and supportive, broadens our platform and deepens our portfolio of products and services." – Kent Adcock, CEO

Habitat for Humanity of Lake-Sumter

"We appreciate how the work of FCLF primarily benefits low- to moderate-income individuals and areas and supports the needs of our community." – Maria J. Thompson, Community Development Manager

Third Federal Savings

"Cade Museum is proud to be partners with FCLF and JPMorgan Chase. Thanks to the NMTC Program, we will provide a transformative asset to our community." – Jennifer Denault, COO

Cade Museum for Creativity & Inventi…

Our Partners

FCLF supporter, the Northern Trust Company, hosted a housing roundtable in Sarasota.
FCLF supporter, the Northern Trust Company, hosted a housing roundtable in Sarasota.
DuPuis Pointe offers affordable, hurricane proof homes in Miami.
DuPuis Pointe offers affordable, hurricane proof homes in Miami.
FCLF staff with local supporters at Metropolitan Ministries Tampa.
FCLF staff with local supporters at Metropolitan Ministries Tampa.
FCLF Board Members represent our investors, borrowers, and technical experts.
FCLF Board Members represent our investors, borrowers, and technical experts.
Residents at Neighborhood Renaissance's Mathis Place enjoy affordable rent.
Residents at Neighborhood Renaissance's Mathis Place enjoy affordable rent.
FCLF staff are active at statewide conferences and events.
FCLF staff are active at statewide conferences and events.
Support from Axiom Bank helps FCLF build strong communities.
Support from Axiom Bank helps FCLF build strong communities.
FCLF projects create jobs and stimulate development in low-income communities.
FCLF projects create jobs and stimulate development in low-income communities.
Support from TD Bank Charitable Foundation helps FCLF build strong communities.
Support from TD Bank Charitable Foundation helps FCLF build strong communities.
The duPont Fund used FCLF and NMTC Financing to revitalize downtown Jacksonville.
The duPont Fund used FCLF and NMTC Financing to revitalize downtown Jacksonville.
The RCRI Conference allows FCLF staff to touch base with our religious supporters.
The RCRI Conference allows FCLF staff to touch base with our religious supporters.
FCLF Financing to Neighbor Up Brevard helps provide affordable rental housing.
FCLF Financing to Neighbor Up Brevard helps provide affordable rental housing.
FCLF Staff meet and greet friends at an FLACDC event.
FCLF Staff meet and greet friends at an FLACDC event.
Rep. Daniel Webster visited FCLF staff.
Rep. Daniel Webster visited FCLF staff.
Support from Valley Bank helps FCLF build strong communities.
Support from Valley Bank helps FCLF build strong communities.
Neighbor Up, formerly BNDC, offers affordable housing in Brevard County.
Neighbor Up, formerly BNDC, offers affordable housing in Brevard County.
FCLF projects create jobs and stimulate development in low-income communities.
FCLF projects create jobs and stimulate development in low-income communities.
Rep. Ander Crenshaw visited KIPP Jacksonville School
Rep. Ander Crenshaw visited KIPP Jacksonville School
FCLF and NMTC are creating a new facility for the Boys & Girls Clubs of Manatee County
FCLF and NMTC are creating a new facility for the Boys & Girls Clubs of Manatee County
FCLF representatives are ready to talk about your project success.
FCLF representatives are ready to talk about your project success.
Catholic Charities, Diocese of Venice, financed the land for farmworker rental housing with FCLF.
Catholic Charities, Diocese of Venice, financed the land for farmworker rental housing with FCLF.
New rental homes are available for farmworker families at Casa San Juan Bosco.
New rental homes are available for farmworker families at Casa San Juan Bosco.
TD Charitable Foundation and TD Bank have supported FCLF's mission since 2006.
TD Charitable Foundation and TD Bank have supported FCLF's mission since 2006.
FCLF and the NMTC Program renovated a historic building into a small business incubaor.
FCLF and the NMTC Program renovated a historic building into a small business incubaor.
Nutritious snacks are a part of the healthy focused curriculum at Emma Jewel Charter Academy.
Nutritious snacks are a part of the healthy focused curriculum at Emma Jewel Charter Academy.
FCLF financing to Housing Programs, Inc. helps provide affordable homes for ownership.
FCLF financing to Housing Programs, Inc. helps provide affordable homes for ownership.
FCLF staff and US Legislative staff at an event honoring Youth of the Year.
FCLF staff and US Legislative staff at an event honoring Youth of the Year.
FCLF CEO and one of our supporters visit the ASPIRA Arts Deco school.
FCLF CEO and one of our supporters visit the ASPIRA Arts Deco school.
FCLF staff and supporters volunteer at Million Meals event.
FCLF staff and supporters volunteer at Million Meals event.
FCLF Chief Lending Officer visits with the Executive Director of Neighbor Up (formerly BNDC)
FCLF Chief Lending Officer visits with the Executive Director of Neighbor Up (formerly BNDC)
Greater Heights offers new, safe, affordable rental homes in what was formerly a high crime area.
Greater Heights offers new, safe, affordable rental homes in what was formerly a high crime area.
FCLF Staff are on hand at conferences and events to discuss our programs.
FCLF Staff are on hand at conferences and events to discuss our programs.
ASPIRA of Florida offers education & mentoring with a focus on low-income and Latino students.
ASPIRA of Florida offers education & mentoring with a focus on low-income and Latino students.
Emma Jewel Charter Academy offers education  for the whole child in Brevard County.
Emma Jewel Charter Academy offers education for the whole child in Brevard County.
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Core Purpose FCLF exists to maximize opportunities for people and places outside of the economic mainstream.
Our Vision Opportunity and dignity exist for every person and community in Florida.
Our Mission Our expertise and capital make projects successful and help organizations improve lives and communities.