Funds will promote economic and community development in Maricopa county
Phoenix Community Development & Investment Corporation (PCDIC) was recently awarded a $45 million New Markets Tax Credit (NMTC) allocation from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund).
This marks the third consecutive year that PCDIC has received NMTC funding following last year’s allocation of $55 million and a previous allocation of $35 million. The NMTC program is designed to stimulate private investment in projects that create substantial community impacts in economically distressed communities. The program helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible.
“This funding allocation will be a tremendous asset to economically disadvantaged areas across Phoenix and the county,” said Phoenix Mayor Kate Gallego. “For every $1 invested by the federal government, the New Markets Tax Credit program generates over $8 of private investment.”
PCDIC is one of 107 Community Development Entities (CDEs) to receive funding for the 2021 calendar year allocation application. Qualified areas for the federal NMTC program are based on census tracts where the individual poverty rate is at least 20%, or where median family income does not exceed 80% of the area’s median income.
PCDIC intends to focus its allocation on the development of community facilities within Maricopa county that will bridge the skills gap for the county’s workforce, increase access to education and healthcare, and provide relief for the homeless.
“Over the past three years, we’ve been awarded a total of $135 million that goes back into our local community in areas that need it the most and will greatly benefit our community,” said Ginger Spencer, deputy city manager for the City of Phoenix and chair of the PCDIC Board of Directors.