The 7th award for PIDC Community Capital for a total of $373 million in New Markets Tax Credit allocations over 13 years
PHILADELPHIA (September 2, 2021) – Today, PIDC announced its CDFI subsidiary, PIDC Community Capital, was awarded $60 million in New Markets Tax Credit (NMTC) allocation from the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund). PIDC Community Capital was one of 100 organizations nationally selected to receive an allocation in this current round. Yesterday, the CDFI Fund announced a total of $5 billion in NMTC allocation aimed at spurring investment and economic growth in low-income urban and rural communities nationwide.
This marks PIDC’s 7th award of NMTC allocation for a total of $373 million. To date, PIDC Community Capital has deployed $308.5 million in 38 development projects with a total project investment of $898 million which have provided essential goods and services, created jobs, and transformed neighborhoods in Philadelphia.
“We are thrilled for PIDC to continue to play a leadership role in an equitable economic recovery for our city by bringing this federal allocation of New Markets Tax Credits to high-impact projects in Philadelphia’s communities,” said Anne Bovaird Nevins, president of PIDC. “In alignment with our strategic priorities, we are committed to investing these credits in ways that address poverty and racial inequity in our city, including creating quality job opportunities for Philadelphians.”
The NMTC program helps economically distressed communities attract private investment capital. This federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. Communities benefit from the jobs associated with investments in a wide array of industries. Communities also benefit from greater access to housing and public facilities.
“As Philadelphians continue to recover from the impacts of the COVID-19 pandemic, it is more important than ever to support investments in neighborhoods that have been hit the hardest, especially those that have been historically economically distressed,” said Mayor Jim Kenney. “This $60 million investment in federal tax credits for PIDC Community Capital will help create jobs and spur economic growth for the communities that need it most.”
PIDC has deployed $308.5 million in NMTC allocation in 38 projects located in severely distressed census tracts throughout the city. These projects have created, retained, or will create over 4,230 jobs primarily to low-income individuals and have developed or rehabilitated multiple facilities. Some notable recent projects include:
Cobbs Creek Commons — Cobbs Creek Commons is a 37,848-square-foot commercial building at 100 N 63rd St. in West Philadelphia that is a home to growing MBE companies. PIDC’s funding enabled the owner of American Power Electrical Supply, a full service, full-line MBE electrical supply wholesale and retail company, to purchase the space the company had been renting and to complete needed capital improvements and renovate space for additional companies. With a total project cost of $2.1 million, the project received $1.7 million from PIDC’s Impact Development Fund, which is an innovative loan program capitalized with New Markets Tax Credits.
The Clay Studio — Located at 1425 N. American Street, the new ceramic arts facility will be a milestone for the nearly 50-year-old Clay Studio that will be able to better serve Philadelphia’s thriving artists and arts community with state-of-the-art studios, new gallery spaces, larger classrooms, and more. PIDC allocated $9.5 million for the project, which has a total project cost of $13 million.
The Boys and Girls Club of Philadelphia — The Boys and Girls Club of Philadelphia is creating the Ralph J. Roberts Boys & Girls Club by transforming the entire interior of the existing historic structure into a modern 64,405 square foot facility. The 100+ year old youth-serving nonprofit organization provides employment, recreation, leadership, arts education, and healthy meals to low-income youth. With a total project cost of $14.38 million the project received $8 million from PIDC.
Sharswood Ridge — Located at 2077 Ridge Avenue in the North Philadelphia neighborhood of Sharswood, the Sharswood Ridge project is a 234,000-square-foot mixed-use development that will consist of 45,000 square feet of retail space, including a grocery store, an urgent care center, and other community-serving retail. The project will also include 98 mixed-income residential units. PIDC allocated $10 million for the project which has a total cost of $35.72 million.
To learn more about eligibility for New Markets Tax Credits through PIDC, please visit our web page or call 215.496.8020.
ABOUT PIDC & PIDC COMMUNITY CAPITAL
PIDC is Philadelphia’s public-private economic development corporation. A non-profit founded in 1958 by the City of Philadelphia and the Greater Philadelphia Chamber of Commerce, PIDC’s mission is to spur investment, support business growth, and foster developments that create jobs, revitalize neighborhoods, and drive growth to every corner of Philadelphia. Over the past 63 years, PIDC has settled more than 9,800 transactions with a diverse range of clients – including more than $17.7 billion of financing and more than 3,300 acres of land sales – which have leveraged more than $31 billion in total investment and assisted in retaining and creating hundreds of thousands of jobs in Philadelphia.
PIDC Community Capital was established as a subsidiary to attract, expand, and deliver additional resources for community investment in Philadelphia’s most underserved areas and was certified as a CDFI by the U.S. Treasury Department in 2012. PIDC Community Capital builds sustainable neighborhoods, revitalizes business corridors, and supports business growth by making investments that create jobs, grow businesses, leverage outside capital, and provide goods and services to low-income communities throughout Philadelphia. It offers a variety of flexible financing products for small businesses to fund working capital, building acquisition, equipment, or improvements.