$55M in Funding Headed to NYC to Spur Economic Growth in Underserved Neighborhoods

NYCEDC President and CEO James Patchett
NYCEDC President and CEO James Patchett

New York, NY –New York City Economic Development Corporation (NYCEDC) announced that New York City has been awarded $55 million in New Markets Tax Credits (NMTC) from the U.S. Department of Treasury. The credits will be allocated to NYC Neighborhood Capital Corporation (NYCNCC), a community development entity administered by NYCEDC. The $55 million NMTC allocation provides an opportunity to leverage private investment and provide low-cost financing to advance community-focused real estate development projects, create jobs, and strengthen historically underserved areas throughout the City of New York.

“We are thrilled to be able to receive this award for a second time and look forward to the new opportunities it will bring,” said James Patchett, President, and CEO of NYCEDC. “New Markets Tax Credits provide an exciting opportunity to leverage private investment and low-cost financing to advance community-focused projects, create jobs, and strengthen traditionally underserved areas throughout the five boroughs.”

NYCNCC’s NMTC allocation will be solely awarded for projects within New York City’s five boroughs, whereas most other community development entities (CDEs) located in New York have a national or state-wide reach. The Community Development Financial Institutions (CDFI) Fund was created in 1994 to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities. The NMTC Program, administered by the CDFI Fund, provides tax credits that advance economic development in order to spur private investment in distressed communities.

Out of 214 applicants, NYCNCC was one of 73 CDEs selected to receive $3.5 billion in NMTCs under this round of awards since the NMTC program launched in 2001.

NYCNCC was first awarded $55 million in NMTC allocation in 2016. The award helped finance five impactful projects in underserved communities in New York City. These projects were the Rockaway Beach Medical Arts Center in the Rockaways, the Madison Square Boys & Girls Club in Central Harlem, the Village ShopRite Grocery Store in Soundview, Bronx, the GMDC Manufacturing Center in Ozone Park, Queens, and the Building 127 Manufacturing Center at the Brooklyn Navy Yard.

For more information or to learn how your project can benefit from NYCEDC’s NMTC program, visit our website or contact the EDC Strategic Investments Group at 212.618.5737 or StrategicInitatives@edc.nyc.