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CSCDA Seeks Projects Located in Low Income Neighborhoods for Tax Credit Program

April 26, 2012

The California Statewide Communities Development Authority (CSCDA) can now facilitate investment in low-income communities through the use of New Markets Tax Credits (NMTC) and is currently seeking potential projects to include in the allocation pipeline.

 

Eligible project types include community facilities, charter schools, healthcare facilities, manufacturing facilities and commercial real estate developments located within eligible low-income neighborhoods throughout California.

This program, passed by Congress in 2000, encourages investments in low-income communities by providing a tax incentive for community development lenders and the capital markets to invest in communities that historically have had poor access to capital.

To complement its successful bond issuance programs, CSCDA has organized an affiliate community development entity, the California Statewide Communities Development Corporation (CSCDC) to facilitate investment in low income communities through the use of NMTCs.

NMTCs will generate up to 20 percent of the capital required for these projects and businesses. Often that is the difference that will make a desirable project feasible.

CSCDA is the joint powers authority conduit bond issuer created in 1988 by the League of California Cities and California State Association of Counties and is comprised of over 500 cities, counties and special districts throughout the state. CSCDA’s mission is to provide local governments and private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California.

If you are aware of any potential projects that could use NMTCs or have any additional questions, please contact Jon Penkower of CSCDA at (925) 274-4601.



 
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