Enterprise to Use NMTC Award to Revitalize Distressed Communities Across the United States
COLUMBIA, MD – February 25, 2011 – (RealEstateRama) — Enterprise Community Investment, Inc. (Enterprise), a national leader in community development and affordable housing, today secured $62 million in New Markets Tax Credit (NMTC) allocation from the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund). Enterprise is one of 99 Community Development Entities receiving an allocation of the $3.5 billion in NMTC awarded as part of the Tax Relief, Unemployment Insurance Authorization and Job Creation Act of 2010. This new allocation brings Enterprise’s total NMTC awards to $672 million, $595.5 million of which has previously been invested in low-income communities nationwide, making it one of the largest allocatees of NMTCs in the country.
Enterprise will use its NMTC allocation to provide flexible, below market financing for commercial, mixed-use, and community facility projects that will provide substantial benefits to low-income people and communities throughout the United States. With features including low interest rates and flexible repayment terms, Enterprise’s financing will help address the appraisal gap and cash flow issues that often prevent such projects from obtaining adequate and affordable conventional financing. Consistent with the Enterprise Green Communities NMTC Program, each of the financed projects will incorporate environmentally sensitive practices to ensure long-term cost-effectiveness and to maximize the health benefits for their users.
The NMTC activities will build upon the affordable housing and community development work that Enterprise has undertaken, thus furthering economic opportunities for low-income people. In light of the continued unemployment crisis facing the country, the NMTC program is a critical component to job creation and retention, wage increases and wealth creation in low -income communities.
“We are extremely pleased with the CDFI Fund’s decision to award Enterprise with a NMTC allocation in this competitive funding round,” said Joseph Wesolowski, senior vice president, Structured Finance, Enterprise. “In times of economic uncertainty, it’s great to see that this administration continues to recognize the NMTC program as an essential component to developing strong communities and stimulating economic development in the country’s most distressed neighborhoods.”
To date, Enterprise has invested in 48 commercial, mixed-use and community facility projects in 19 states and the District of Columbia with development costs totaling more than $3.4 billion. These developments will result in more than 7.3 million square feet of new or rehabilitated real estate, 3,500 housing units and more than 12,000 permanent jobs created or retained in local communities. Many of these developments meet environmentally sustainable standards such as the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Rating System™ and the Enterprise Green Communities criteria. Currently, 92 percent of Enterprise’s investments exceed NMTC regulations by being located in census tracts that the CDFI Fund defines as areas of higher distress.
Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For nearly 30 years, Enterprise has introduced neighborhood solutions through publicprivate partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested $10.6 billion in equity, grants and loans to help build or preserve more than 270,000 affordable rental and for-sale homes to create vital communities. Enterprise is currently investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.org and www.enterprisecommunity.com to learn more about Enterprise’s efforts to build communities and opportunity.