New Brunswick, NJ (June 18, 2015) – New Jersey Community Capital (NJCC) is ready to deploy a new round of $50 million in federal tax credits to fund catalytic economic development projects which will generate jobs in distressed neighborhoods across the state of New Jersey. On June 15, the U.S. Department of the Treasury’s CDFI Fund announced that it had awarded a $50 million New Markets Tax Credit (NMTC) allocation to NJCC in its 2014 round of funding. One of two New Jersey-based community development financial institution (CDFI) receiving an allocation, NJCC is the only awardee that will deploy 100% of its award within New Jersey.
New Markets Tax Credits are designed to spark investment and economic growth in distressed communities. NJCC has developed a pipeline of projects that it will now seek to finance through its NMTC award and the private capital the award will leverage. Potential projects include education facilities, health care centers, community centers, and mixed-use real estate projects. NJCC’s pipeline targets areas of Essex, Hudson, Mercer, Passaic, and South Jersey.
“With this New Markets award, we will be able to attract private investments to finance transformative projects in locations where they are needed most,” said NJCC President Wayne Meyer. “These projects will generate the jobs, services, and opportunities essential for low-income communities to thrive. We are very grateful to the CDFI Fund for enabling us to fund the types of critical projects that would not be possible without the support provided by these tax credits.”
The 2014 allocation is the fourth that NJCC has received: it was also awarded a $35 million allocation in 2012, a $15 million allocation in 2002 and a $35 million allocation in 2008. Examples of NJCC’s past NMTC projects include the construction of a storage space for quality meats in the Newark Farmers Market; the redevelopment of part of the historic Hahne’s Department Store building in Newark to house a Whole Foods; and the second phase of the award-winning 11-block mixed-use “Teachers Village” in downtown Newark, which will provide space for three charter schools, an early care facility, housing in the form of affordable rentals for Newark’s teachers and other educators, and new retail space. In total, NJCC’s NMTC deployments have leveraged nearly $400 million in additional investments.
About New Jersey Community Capital (NJCC)
NJCC is a nonprofit community development financial institution (CDFI) that transforms at-risk communities through strategic investments of capital and knowledge. NJCC invests in affordable housing, community facilities, and economic development ventures that strengthen neighborhoods, improve education, and increase jobs, ultimately providing greater opportunities for low-income populations. Since inception, NJCC has facilitated the investment of over $500 million into 800 high-impact projects across the state, supporting the creation and preservation of 12,900 education seats, 8,200 housing units, 6,100 early care slots, and 6,100 jobs. For more information, please visit www.newjerseycommunitycapital.org.