$44 Million in New Markets Tax Credit Funds Allocated to LIIF
The U.S. Department of the Treasury announced on Friday, October 5 that the Low Income Investment Fund (LIIF) received an allocation of $44 million in equity for which New Market Tax Credits (NMTC) can be claimed. LIIF will use its equity to attract private sector capital to community development activities in low income communities.
Since its inception in 1984, LIIF has leveraged public funding such as this to raise private capital and make a wide range of community development loans. This NMTC 2007 allocation will allow LIIF to continue its critical work that has, to date, supported 54,000 units of affordable housing, 47,000 child care spaces and 38,000 classroom spaces.
LIIF’s President and CEO Nancy O. Andrews noted, “LIIF is filling a vacuum for nonprofit and community development organizations that are making a difference in the lives of individuals who are living at or below the poverty line. With the NMTC award, we can meet the growing demand for our lending products and services from these organizations, while providing a secure vehicle for private sector investors to support the low income communities LIIF serves.”
“These tax credits are intended to spur new private sector investment in communities in need across the United States,” said Deputy Secretary Robert M. Kimmitt in announcing the NMTC allocations. “The vision of the Community Development Financial Institutions (CDFI) Fund is to help give all Americans access to affordable credit, capital, and financial services.”
“These tax credits, totaling $3.9 billion, are important to encourage investment in rural and urban low income communities across the United States,” continued CDFI Fund Director Kimberly A. Reed.
LIIF was one of 61 organizations across the country to receive a portion of the $3.9 billion in total allocations. The NMTC is a program of the CDFI Fund, a division of the U.S. Department of the Treasury.