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Dayton development projects awarded $25.2M in tax credits
DAYTON DAILY NEWS
DAYTON — Two development projects in the city have received additional funding from CityWide Development Corp., the organization announced Monday.
CityWide’s Dayton Region New Market Fund approved a total $25.2 million in state and federal tax credits. Of that amount, $18.6 million is to help pay for the cost of Goodwill Easter Seals Miami Valley’s expansion downtown. Goodwill is building a new human services center on South Main Street to open in late 2014 or early 2015 that will allow it to expand services to the developmentally disabled, elderly and unemployed.
Also awarded was $6.6 million in credits for construction of a new CARE House building, an advocacy center for child victims of abuse and neglect being built near Dayton Children’s Hospital on Valley Street.
These are U.S. Treasury-issued tax credits, said Brian Heitkamp, senior vice president of CityWide.
Local entities like the Dayton Region New Market Fund are allocated money through a competitive national application process. The Dayton fund is the only certified agency for receiving the money serving the nine-county region. However, state and national certified groups could invest locally as well.
The Dayton fund selects projects to invest in qualified low-income areas, Heitkamp said. Projects are chosen based on job creation, services provided to the community and other factors.
Once a project is awarded tax credits, an investor is found and “buys” the tax credits from the Dayton fund at a discount. That payment, or equity, is then invested in the project, Heitkamp said.
The investor receives tax credits to apply to their tax liability over several years.
The $25.2 million awarded in tax credits, for example, is not the same amount of equity injected into the project, he said.