This year, a total of $7 billion in New Market Tax Credits
were awarded to 120 organizations around the country from the Community Development Financial Institutions Fund
, which is made possible by the U.S. Treasury Department. Three Cincinnati development organizations received $125 million of that money.
The Cincinnati Development Fund
received $65 million in NMTC. The organization plans to utilize the money to help kickstart development efforts in College Hill, Madisonville, Northside and Walnut Hills, all of which have business districts that are undergoing rejuvenations.
This is the largest award CDF has received through the NMTC program.
The Kroger Community Development Entity LLC
received $15 million through the program, and Uptown Consortium
received $45 million.
Since its inception in 2000, a total of $50.5 billion has been doled out to community development organizations. For every dollar invested by the federal government, it has helped leverage about $8 billion in private investment.
The NMTC program allows investors to reduce tax liability by purchasing federal tax credits from community development groups, which then use the funds to help close financing gaps. Overall, the goal of the program is to further redevelopment in blighted neighborhoods.
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