|SAN DIEGO – January 16, 2017 – Demonstrating the successful investment of federal tax credits into San Diego’s urban communities, the most recent update from recipients of Civic San Diego’s (CivicSD) New Markets Tax Credit (NMTC) program finds that the four projects eligible for review – the Copley-Price Family YMCA, the Family Health Centers’ Health Information Technology Education and Career Center, Urban Corps of San Diego County, and the Jackie Robinson Family YMCA – have delivered significant benefits to their communities.
A program of the federal government, allocations of tax credits are awarded nationally to community development entities, like CivicSD’s Economic Growth and Neighborhood Investment Fund, through a competitive application and allocation process. After receiving an award, CivicSD then receives equity investments from banks in exchange for the tax credits and uses the proceeds to provide a below market loan to project applicants. Accepted projects must enable disadvantaged businesses to grow, create quality jobs, deliver critical goods and services to San Diego’s low-income residents, and deliver substantial benefits to the surrounding community.
To ensure the tax credits meet the intended goal of benefitting the community, each is bound by a Community Benefits Agreement that details the expectations of the positive community impacts of the project, sets benchmarks for performance and methods by which the project will achieve them, and requires quarterly reporting of each project’s results. The annual report to the CivicSD Board of Directors demonstrates the significant impact the investment in these projects has made in the surrounding communities.
“Civic San Diego is always looking for new, innovative ways to bring capital investment into our urban communities that is not only going to help these communities grow, but also make a difference in the quality of life for the people who live there,” said Reese A. Jarrett, President of CivicSD. “The New Markets Tax Credit program is an excellent example of successfully executing this goal. Every time these projects create a new full-time, living wage job or provide services to families in need, we are reminded of the importance of our work and the role Civic San Diego can play in helping our underserved neighborhoods flourish.”
A few highlights of the community impacts provided by the four projects during the reporting period include:
Copley-Price Family YMCA
• Providing 1,508 subsidized memberships for low-income persons
• Providing subsidized childcare to 1,523 children of low-income families
• Raising $60,000 for camp scholarships
Family Health Centers’ Health Information Technology Education and Career Center
• Providing a living wage or higher to 100 percent of full-time employees
• Providing quality healthcare and supportive services to more than 300 low-income and medically underserved persons
• Raising $94,000 of charitable contributions through fundraising efforts
Urban Corps of San Diego County
• Providing on-site charter school for an average of 200 low-income youth
o Accomplishing a 77 percent graduate rate among seniors
o Placing 69 percent of graduates in employment and enrolling 22 percent in college
• Planting 251 trees
• Removing 119,661 square feet of graffiti and 11,832 pounds of litter
Jackie Robinson Family YMCA
• Broke ground in the Fall creating 20 direct predevelopment or construction jobs
• Providing prevailing wage for 100 percent of these jobs
• Providing 40 percent of these jobs to low-income persons and/or residents of low-income communities
Through the reporting period, the CivicSD Fund has received three allocations totaling $83 million and more than 93 percent has been invested in projects in underserved communities. The federal government recognized this strong performance with the recent announcement of a fourth award of $50 million in allocation. The combined award amount of $133 million is striking compared to other large urban municipalities in California (Los Angeles, Oakland and San Francisco) that collectively have not received the same level of allocation over the past four years.
New Markets Tax Credit program benefits can be used by either a nonprofit or for-profit borrower, can be used for real estate development or the support of ongoing operations, and are recommended for larger capital projects of $8 million or more. Additionally, they must be vetted and recommended by an advisory board that is accountable to low-income communities in San Diego.
To read the full Community Benefits Report, click here (3MB PDF). For additional information about qualifications and opportunities for funding through the New Markets Tax Credit program, visit CivicSD.com/programs/new-markets-tax-credits.