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CDFA Tax Credits Finance Update - July 23, 2024

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Tax Credits Finance Update
July 23, 2024
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Tax Credits Finance Update

Features

Invest in Yourself at 2024 CDFA Summer School!
CDFA Summer School is a 2-week long virtual series of courses designed to help you accelerate your development finance education, with a curation of seven different training courses to choose from. Don't miss the opportunity to learn from our expert practitioners and experience CDFA's most interactive educational event of the year! Register today!

New Jersey Awards $22M Tax Credit for Health Care Center
State officials have given a major boost to another development in Newark, approving a nearly $22 million tax credit award for a new ground-up health care project in the South Ward. According to the Economic Development Authority, the plan would transform a site at the corner of Clinton Avenue and Bergen Street that currently houses vacant land and older retail and warehouse buildings.

We Want to Hear from You! Help Identity Financing Tools for Missing Middle Housing
This year's class of CDFA Franzini Fellows is researching the various financing tools available for missing middle housing, affordable housing, and in particular, pocket neighborhoods. The Fellows are interested in learning about housing financing tools, as well as barriers and solutions to access to capital. By taking just a few minutes to complete this survey, you will lend your experience and industry knowledge to aid in the creation of systems and action plans that can be used for both developers and new homeowners. Thank you for your participation!

Pennsylvania Announces Tax Credits for Construction of Affordable Rental Housing
The Pennsylvania Housing Finance Agency (PHFA) is announcing funding for the construction or rehabilitation of 1,916 rental units, of which 1,801 will be affordable to households at or below 60% of the area median income. The funding is coming from a variety of sources, including more than $57.5 million in federal Low-Income Housing Tax Credits (LIHTC); more than $16.8 million in PennHOMES funding; more than $17.5 million in National Housing Trust Funds and/or Pennsylvania Housing Affordability and Rehabilitation Enhancement funds; and more than $22.6 million in state housing tax credits.

State Tax Credit Received for Cleveland, OH United Church of Christ Building Renovation
K&D Development, the owners of the property once home to the United Church of Christ, announced that they received a $4 million Ohio State Historic Preservation Tax Credit. That money will cap off K&D's fundraising push for a $46 million conversion from offices into apartments.

Rural Development Partners Invests $15M in NMTCs to Expand Colorado Food Bank
Rural Development Partners invested $15 million in New Markets Tax Credit (NMTC) financing to help the Food Bank of the Rockies expand their distribution center to Aurora, Colorado. Without NMTCs, the expansion would be significantly delayed or scaled back, limiting the ability to address food insecurity. The facility will support 179 full-time jobs, increase farmer sourcing, expand rural outreach, and quadruple the capacity for volunteer operations.

Tapping Tax Credits to Fuel Alternative Energy
Tax credits are part of the Inflation Reduction Act, an almost two-year-old law that aims to cut the country's greenhouse gas emissions by helping Americans switch to more energy-efficient and environmentally friendly appliances, vehicles, and sources of power. While more Americans than ever have been installing heat pumps or driving electric vehicles, there is still a lack of awareness about resources to help people cover the cost of these switches.

Bar Pole and Piling Revives Mississippi Mill Using New Markets Tax Credit Funding
UB Community Development, LLC, a community development partner of United Bank, provided a combined $10 million in Federal and Mississippi New Markets Tax Credit (NMTC) funding to aid in the construction of a utility pole mill in Quitman, Mississippi. Once construction is complete, the new BP&P facility will include office space, a scale house, and maintenance building, as well as new technology and equipment that detects defects in logs before being processed into poles.

Tax Credit Award Paves the Way for Green Valley Apartments in Payson, AZ
The Payson Regional Housing Authority received a perfect score on its tax credit application to build the second phase of the Green Valley Apartments in Payson, AZ. The apartments will be developed on part of the land reclaimed from a floodplain that has stymied development along Main Street since the town was founded. Phase II will have eight one-bedroom apartments, 24 two-bedroom apartments, and eight three-bedroom apartments.

Impact of the Inflation Reduction Act on Transferable Tax Credits
Aside from changes to renewable energy, the Inflation Reduction Act (IRA) has brought significant changes to the landscape of tax credits. With the introduction of transferable tax credits on the federal level, there's a timely need to understand how these changes impact various stakeholders. This explores the nuances of these transferable credits and their broader implications for the market.

Upcoming Events
CDFA Summer School

CDFA // BNY Development Finance Webcast Series: Financing Charter Schools with Social Bonds
August 20, 2024 - 2:00 PM - 3:00 PM Eastern
During this installment of the CDFA // BNY Development Finance Webcast Series, panelists will discuss how social bonds can be used to provide low-interest loans to high-performing public charter schools to provide transformative educational opportunities for students.

SSBCI Learning Series - Filling the Gaps with the Suite of SSBCI Technical Assistance Programs
August 27, 2024 - 2:00 - 4:00 PM Eastern
SSBCI 2.0 has provided three different sources of funding for a range of technical assistance. In this session, speakers will discuss how each program supports the other and explore best practices on how to maximize the impacts of each program.

More Headlines

Minnesota Gov. Walz Highlights Resources for New Farmers, Flooding Recovery Assistance
Caledonia Hometown Source | Jul. 21 | Agriculture Finance | Disaster Recovery & Relief | Food Systems Finance | Rural Development | Tax Credits

New Jersey Awards $6.7M in NRTC Lead-Based Paint Hazard Funding
New Jersey Department of Community Affairs | Jul. 18 | State Finance Program | Tax Credits | Urban Development

New York Tax Credit Makes Solar Affordable
Brownstoner | Jul. 18 | Access to Capital | Energy Finance | Green Finance | Historic Preservation | Incentives | Innovation Finance | State Finance Program | Tax Credits

Arvo Tech Raises $2.5M to Expand Tax Credit Platform
Pymnts | Jul. 17 | Innovation Finance | Tax Credits

25% Tax Credit Supports Pennsylvania College Savings
WTAJ | Jul. 17 | Education | Tax Credits

Paducah, KY's Columbia Art House Receives Historic Tax Credits for Theater Rehabilitation
The Paducah Sun | Jul. 17 | Access to Capital | Historic Preservation | Tax Credits

Historic Minot, ND House Gets Tax Break Support for Rehab
Minot Daily News | Jul. 17 | Access to Capital | Historic Preservation | Tax Credits

Vermont Expands Vehicle Incentive Programs for Residents Affected by Flooding
VermontBiz | Jul. 16 | Disaster Recovery & Relief | Incentives | Tax Credits

California Budget Bills Suspend NOLs, Limit Tax Credits, and Overturns Microsoft
Forvis Mazars | Jul. 16 | State Finance Program | Tax Credits

New York Gov. Hochul Announces Opening of New Housing Development in Buffalo
WGRZ | Jul. 12 | Access to Capital | Community Development | Housing Finance | Redevelopment | Tax Credits | Urban Development

Missouri Gov. Parson Signs Bill Providing Bonus HTC Percentage to Rural Counties
Novogradac | Jul. 12 | Access to Capital | Historic Preservation | Incentives | Rural Development | Tax Credits

Cincinnati, OH Seeks Repayment of Tax Credits for Mercy Health's Bond Hill Headquarters
WCPA | Jul. 11 | Tax Credits

$2M in Historic Tax Credits for Amherst, MA Library Expansion Off the Table
Daily Hampshire Gazette | Jul. 11 | Historic Preservation | Tax Credits

Treasury Urged to Adjust Guidance to Support Clean Hydrogen Power Development
Alex Padilla, U.S. Senator for California | Jul. 10 | Access to Capital | Energy Finance | Green Finance | Tax Credits | U.S. Dept. of Treasury

Historic Salina, KS Temple Awarded Tax Credits, Additional Operating Capital
Salina Post | Jul. 1 | Historic Preservation | Incentives | Tax Credits

Two Projects in Ohio's Mahoning Valley Land Historic Preservation Tax Credits
The Business Journal | Jun. 27 | Access to Capital | Historic Preservation | Tax Credits

$7M in NMTC Allocation for Boys & Girls Clubs of Sarasota, DeSoto Counties, FL
FCLF | Jun. 26 | Community Development | Tax Credits

HHS Publishes First Round of IRA Case Studies on Health Sector Climate Investments
newswires | Jun. 26 | Energy Finance | Healthcare | Rural Development | Tax Credits | Case Studies

New State Opportunity Zones Approved in Southwest Atlanta, GA
City of Atlanta | Jun. 26 | Access to Capital | Tax Credits



The Council of Development Finance Agencies (CDFA) is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private and non-profit entities alike. For more information, visit www.CDFA.net or email info@cdfa.net


Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net

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