The sixth award for PIDC Community Capital for a total of $313 million in New Markets Tax Credit allocations over eleven years
PHILADELPHIA (May 23, 2019) – PIDC today announced its CDFI subsidiary, PIDC Community Capital, was awarded $45 million in New Markets Tax Credit (NMTC) allocation from the U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund. PIDC Community Capital was one of 73 organizations selected nationally to receive an allocation in this current round, and one of only 12 organizations that have exclusively a local market focus. Today, the CDFI Fund announced a total of $3.5 billion in NMTC allocation aimed at revitalizing low-income communities and increasing economic opportunity nationwide.
This marks PIDC’s sixth award of NMTC allocation for a total of $313 million. To date, PIDC Community Capital has deployed $241 million in 29 investments in businesses or development projects which provide essential goods and services, create jobs, and transform neighborhoods in Philadelphia. PIDC has also attracted $202 million in additional NMTC allocation from 13 local and national partner allocatees supporting an overall total project investment of $714million.
The New Markets Tax Credit Program administered by the CDFI Fund helps economically distressed communities attract private investment capital by providing investors with a federal tax credit. Investments made through the New Markets Tax Credit Program are used to finance businesses and real estate projects to reinvigorate struggling local economies
“We are proud to have been selected again by the CDFI Fund for an allocation through their very selective process,” said John Grady, President of PIDC. “Our long track record of deploying New Markets Tax Credits in the people and projects in Philadelphia that need them the most shows us the transformational impact this program can have. This new allocation will allow us to support our growing pipeline of projects and entrepreneurs that are creating jobs and providing needed goods and services for Philadelphia’s low-income communities. We congratulate our fellow awardees and look forward to continuing to partner with them in the future.”
PIDC’s 29 projects are all located in severely distressed census tracks throughout the city. These projects have created, retained, or will create over 3,894 jobs primarily to low income individuals and have developed or rehabilitated over 2.1 million square feet of facilities. Some notable past projects include:
- Esperanza Health Center: the project will transform a vacant former bank building in Kensington into a state-of-the-art healthcare facility providing primary, dental, and behavioral health care along with integrated services to a medically-underserved population.
- Oxford Mills: the renovation of a historic factory in South Kensington into a mixed-use building which provides subsidized apartments for teachers and office space for educational nonprofits.
- New Market West: a partnership of Mission First, Horizon House, and ACHIEVEability, the project is the new construction of a 4-story mixed-use, transit-oriented building on a vacant parcel in West Philadelphia. The project will co-locate healthcare, quality daycare, office space, and community-serving retail.
- Impact Development Fund: established in April 2018, this fund is an innovative use of New Markets Tax Credits to finance neighborhood development projects and businesses in communities often overlooked by traditional lenders. PIDC has financed $5.8 million to five neighborhood business such as Don Pedro Meats and Market, a local butcher shop and grocery and John Pomp Studios, an artisanal lighting and furniture manufacturer.
To learn more about eligibility to apply for New Markets Tax Credits through PIDC, please visit www.pidcphila.com or call 215-496-8020.