3/1/2012 - Washington, DC. - Nixon Peabody LLP is pleased to announce that 25 of the firm’s New Markets Tax Credits (NMTCs) clients were among the 70 community development entities (CDEs) receiving allocations as announced by the U.S. Treasury Department Community Development Financial Institutions Fund (CDFI Fund) on February 23, 2011. Nixon Peabody clients received $1.422 billion of the total $3.623 billion awarded.
This year, allocation awards range in size from $20 to $100 million and the average allocation amount was about $51.8 million. These award allocations spur new or increased investments into the nation’s urban and rural low-income areas to help finance community development projects, stimulate economic growth, and create jobs. Since established by Congress in 2000, the CDFI Fund has made 664 allocation awards totaling $33 billion in tax credit allocation authority, including $3 billion in Recovery Act awards and $1 billion that was specifically set aside for recovery and redevelopment in the wake of Hurricane Katrina.
“The NMTCs program provides valuable capital for economically distressed communities through partnerships among the private and public sectors designed to create jobs and bring new life to these communities,” said Herb Stevens, Nixon Peabody partner and leader of the firm’s NMTC team. “With this year’s awardees being headquartered in 29 states and the District of Columbia and with identified service areas that are intended to result in investments in nearly every state across the U.S., the tremendous reach and impact of this program is clear.”
Nixon Peabody’s NMTC team has been involved with the NMTC program since its inception in December 2000. The NMTC team represents clients in every aspect of the NMTC program, including forming and certifying qualified community development entities; advising clients in connection with allocation applications; finalizing allocation agreements; structuring transactions; issuing legal opinions; documenting, reviewing and negotiating financing documents; and closings deals. The team represents clients at all levels of a NMTC transaction, including tax credit investors, leverage lenders, CDEs and project sponsors.
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