The U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund awarded the Phoenix Community Development & Investment Corporation (PCDIC) a $35 million New Markets Tax Credit (NMTC) allocation as part of its program.
The PCDIC is one of 76 Community Development Entities (CDEs), to receive funding for the 2019 calendar year allocation round. Funding is designated for projects in Maricopa county only.
The NMTC program attracts capital to eligible projects by providing private investors with a federal tax credit for investments made in businesses or economic development projects located in some of the most distressed communities across the nation. Qualified areas are based on census tracts where the individual poverty rate is at least 20 percent, or where median family income does not exceed 80 percent, of the area’s median income.
“This funding allocation puts PCDIC in a position to make a real difference in economically-disadvantage areas across Phoenix and the county,” said Milton Dohoney Jr., assistant city manager for the City of Phoenix and chair of the PCDIC Board of Directors. “While we will leverage federal funds, the beauty of the NMTC program is that the financing decisions are made here at the local level,” continued Dohoney.
Funded projects will primarily include community facilities that will create accessible, quality jobs and increase access to high-quality education, healthcare and homeless assistance in these communities.
PCDIC last received an allocation in 2010.
About the New Markets Tax Credit (NMTC) Program
The NMTC Program was enacted in 2000 to stimulate private investment and economic growth in low-income, urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. Since its inception, the NMTC Program has generated more than one million jobs. Learn more about the about the NMTC program.
The mission of the PCDIC is to attract and provide funds for projects that will improve the quality of life of those individuals who live and work in underserved areas of the community. To accomplish its mission, PCDIC was created in 2002 in response to the Community Renewal Tax Relief Act of 2000, which established the New Markets Tax Credit (NMTC) Program. The City of Phoenix sponsored creation of the PCDIC as a 501(c)(3) nonprofit corporation. PCDIC is governed by its own Board of Directors. For more information, please visit pcdic.org