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CSCDA Program Supports Low-Income Communities

June 22, 2012

The California Statewide Communities Development Authority (CSCDA) works to facilitate investment in low-income communities through the use of New Markets Tax Credits (NMTC).

 

Passed by Congress in 2000, the program 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. CSCDA is seeking potential projects to include in the allocation pipeline. 

Eligible projects must be located within a low-income neighborhood and can include:

  • Community facilities;
  • Charter schools;
  • Healthcare facilities;
  • Manufacturing facilities; and
  • Commercial real estate developments.

NMTCs may provide a net subsidy of up to 20 percent of the gap financing required for projects located in highly distressed communities which create benefits such as job creation and the provision of goods and services for low-income residents. 

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 comprises more than 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 communities throughout California. To complement its successful bond issuance programs, CSCDA has organized an affiliate community development entity, the California Statewide Communities Development Corporation to facilitate investment in low-income communities through the use of NMTC. 

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



 
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