$55 Million in New Markets Tax Credits Awarded to Support Community DevelopmentContact: Megan Herrera
(DENVER) – The Colorado Growth and Revitalization Fund (CGR Fund), administered by Colorado Housing and Finance Authority (CHFA), announced today it has been awarded $55 million in New Markets Tax Credits (NMTC). The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded $3.5 billion in NMTC to 73 entities throughout the U.S., with the CGR Fund being the only awardee in Colorado. NMTC are designed to generate private-sector investment in underserved communities by supporting local businesses or nonprofits that directly benefit current residents, by either hiring from within the community, and/or providing community services.
“These funds will strengthen Colorado by supporting community facilities, mixed-use developments, and businesses that pay living wages. Some examples may be organizations that provide access to fresh food and infrastructure, such as healthcare and broadband in rural areas,” said Cris White, CHFA executive director and CEO.
The CGR Fund was awarded NMTC in both 2005 and 2008, and deployed a combined $75 million to support 1,260 permanent jobs and 1,039 construction jobs.
“All across Denver, from East Colfax to the 16th Street Mall to Five Points, we have utilized the CGR Fund to spur private investments into strengthening our neighborhoods and creating jobs for our residents,” Denver Mayor Michael B. Hancock said. “As a partner with CHFA in the CGR Fund, we’re collectively proud to be awarded the largest allocation of New Markets Tax Credits locally to date.” The CGR Fund was created in partnership with the City of Denver.
Public-private partnerships are essential to the success of the NMTC program. According to the CDFI Fund, for every $1 in federal investment, $8 in private-sector investment is leveraged. The CGR Fund leverages the community partnerships established with CHFA’s commercial and infrastructure lending programs to accomplish its mission of investing in Low-Income Communities (LICs) with maximum impact.