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Big news has come in from the CDFI Fund! The upcoming round of New Markets Tax Credits (NMTCs) will be a double round, offering a staggering $10 billion instead of the usual $5 billion. This welcome increase is designed to ensure the remaining tax credit authority under the current legislation is awarded before the program expires at the end of 2025. For those involved in community development, this presents a golden opportunity to drive substantial economic growth and impact in your community.
How You Can Benefit
1. Understand the Double Round
The upcoming NMTC round will cover calendar years 2024 and 2025. The round is set to open in Fall 2024 with the allocation application deadline due in Winter 2024. Allocation awards will be announced in the Fall of 2025. This double allocation means more significant investment opportunities in low-income communities, providing a powerful tool to stimulate economic development and job creation.
2. Understand the Application Process
As we approach the 2024/25 NMTC Application cycle, Community Development Entities (CDEs) are revisiting their investment strategies and the pipeline of projects that will allow them to achieve those investment goals.
Remember, CDEs are the certified intermediaries for the NMTC program that are given the authority to deploy the NMTC program capital into projects in and serving low-income communities and persons.
The CDFI Fund has extended deadlines for currently Certified CDFIs to apply for Certification under the revised application. This extension aims to address common concerns and reduce the reporting burden on Certified CDFIs. By aligning the submission deadlines for the CDFI Award Recipients Transaction Level Report (TLR) with the CDFI Certification Application deadline, the process becomes more streamlined. This change offers additional time for organizations to adjust their activities to meet updated tests within the application.
3. Ready Your Project Pitch
The Capital Magnet Fund has released a revised Interim Rule and Request for Comments. These updates are crucial for refining the affordable housing program, which hasn’t been updated since 2016. Your input is valuable, and engaging with these updates can help shape a more effective program. This is an opportunity to contribute to the success and relevance of affordable housing initiatives in your community.
4. Other Key Programs to Track
New Markets Tax Credit Program: $5 billion of tax credit allocation from the calendar year 2023 round will be announced soon in late summer or early-Fall 2024.
Bank Enterprise Award Program: With $40 million available, the fiscal year 2024 round will announce awards in fall 2024.
CDFI Bond Guarantee Program: Offering up to $500 million in bond guarantee authority, the fiscal year 2024 round will announce guarantees by the end of September 2024.
CDFI Equitable Recovery Program: A Compliance FAQ document supports ERP awardees in their reporting requirements, with technical assistance meetings planned for this fall.
Native Initiatives – Native American CDFI Assistance Program: Record-breaking requests for Base-FA and TA awards will be announced before the end of this calendar year.
Taking the Next Steps
With these updates and opportunities on the horizon, now is the time to act. Here’s how you can make the most of this news:
1. Stay Updated: Keep an eye on announcements from the CDFI Fund. Ensure you’re aware of deadlines, requirements, and opportunities as they arise.
2. Prepare Your Applications: Whether you’re seeking NMTC allocations or applying for CDFI Certification, start preparing your applications now. Ensure all your documentation is in order and your activities align with the updated requirements.
3. Engage with Stakeholders: Reach out to community development organizations, investors, and stakeholders. Collaborating can amplify your impact and increase your chances of securing funding.
4. Seek Expert Guidance: Navigating these opportunities can be complex. Impact Marketplace is here to help. Our team provides the expertise and support needed to maximize the benefits of these programs for your community or organization.
