CAHEC New Markets Receives $50 Million in New Markets Tax Credit Allocation

The U.S. Department of the Treasury's CDFI Fund has awarded CAHEC New Markets $50 million in New Markets Tax Credit (NMTC) allocation authority for the 2023 allocation round. This latest award brings CAHEC New Markets' total allocation to $270 million, significantly bolstering its capacity to finance high-impact community facilities throughout the Southeast and mid-Atlantic regions.

The NMTC program is a vital tool for stimulating economic growth and community development in low-income areas by attracting private sector investment. CAHEC New Markets plans to use this allocation to fund projects that will create jobs and improve access to education, healthcare, and essential services in high-distress communities.

The impact of CAHEC New Markets' previous allocations has been substantial. To date, their NMTC investments have helped create over 3,000 jobs, established 4,850 student seats in educational facilities, provided 362 beds in shelters and recovery centers, and supported healthcare facilities serving more than 53,000 patients annually. This new allocation is expected to further expand these positive outcomes.

Brian Oxford, Director of Community Capital at CAHEC New Markets, expressed pride in the organization's selection from a highly competitive applicant pool. He emphasized the team's enthusiasm for deploying the allocation to projects that directly address community needs.

This award comes at a critical time when many low-income communities are facing significant challenges in accessing essential services and economic opportunities. The NMTC program's focus on attracting private investment to these areas can play a crucial role in bridging the gap between community needs and available resources.

For the Southeast and mid-Atlantic regions, this allocation could mean the development of new schools, health clinics, community centers, and other vital facilities that might otherwise struggle to secure funding. The job creation aspect of these projects is particularly significant, as it can help stimulate local economies and provide employment opportunities in areas with high unemployment rates.

The ripple effects of these investments can be far-reaching. Improved access to education can lead to a more skilled workforce, while better healthcare facilities can result in healthier communities. Additionally, the development of community facilities can help revitalize neighborhoods, potentially attracting further investment and development.

As CAHEC New Markets begins to deploy this new allocation, communities across the Southeast and mid-Atlantic can anticipate seeing new projects that address critical needs and contribute to long-term economic growth and stability. The success of these projects could serve as a model for community development initiatives in other parts of the country, highlighting the effectiveness of the NMTC program in catalyzing positive change in underserved areas.

This latest award to CAHEC New Markets underscores the ongoing importance of the New Markets Tax Credit program in fostering economic development and improving quality of life in low-income communities. As the organization moves forward with its expanded allocation, the potential for transformative impact across the region is significant, offering hope and tangible support to communities in need of investment and development.