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CityWide awarded $20M in tax credits for economic development
By Steve Bennish
The city of Dayton’s economic development non-profit, CityWide Development Corporation, announced Wednesday that it has received a $20 million allocation from the U.S. Treasury to sell tax credits.
The sale of the credits to investors should raise about 40 percent of that amount to fund projects in economically distressed parts of a nine-county region. The real estate, business and other development projects selected by CityWide must provide economic benefits according to the rules of the tax credits.
In 2011, the last time CityWide received credits, it was allocated $11 million in federal tax credits. The credits will be sold by the Dayton Region New Market Fund, a community development CityWide affiliate.
“Funding furthers our mission of lending into local projects that are creating new economic opportunities in neighborhoods ripe for revitalization,” CityWide President, Steve Budd, said.
CityWide said the New Markets Tax Credit Program was authorized by Congress in 2000 to encourage investment in census tracts located in low-income communities.
The annual awards of tax credits is based on Congressional appropriations. To date, Congress has authorized ten rounds of allocations. The Dayton Region New Market Fund was awarded $11 million in federal credits in the 2010 fiscal year and received a $5 million award of state Ohio New Markets Tax Credits in 2011.
The Dayton Region New Market Fund targets low-income geographic areas where comprehensive community development is underway, said CityWide Senior Vice President Brian Heitkamp.
“This financing tool has leveraged significant capital from the private sector to fund development projects that benefit our businesses and the Dayton community,” Heitkamp said.
CityWide said it was assisted in preparing its application by Novogradac & Company LLP, a national consulting firm located in Ohio It said that Ariel Ventures, headquartered in Cleveland, will provide the fund ongoing technical support.