Nmtc Community Benefits Agreement

We help our clients perform assessment, documentation, analysis and community impact information tasks in NMTC transactions. We work closely with NMTC project sponsors to understand the extent of project impact on their communities through personalized survey and reporting tools, community utility agreements and on-site interviews. We then supplement this primary data with a full range of economic and demographic analysis tools and additional research to contextualize the project`s impact. Finally, we work with our clients to present this information to different target groups through reports to CRC staff and board members, CDFI fund reports and impact stories in NMTC attribution applications. It starts early on with identifying the specific challenges of the deals – whether they get location control, navigate the authorization process or provide other financing – and work closely with clients to overcome these « gating » elements. With many parties, legal documents and due diligence involved in the conclusion, we work closely with our clients to ensure that the closing process proceeds smoothly and reliably for all. By focusing on end-of-end support, we are able to maximize the benefits of NMTC. NMTC investors provide capital to municipal development agencies (CSDs) and receive credits against their federal tax obligations in return. Investors can use their tax credits in just seven years – 5 percent of the investment for each of the first three years and 6 percent of the project for the remaining four years – for a total of 39 percent of the NMTC project. A CRC may be its own investor or find an external investor.

Investors are primarily companies – often large international banks or other regulated financial institutions – but any entity or person has the right to use NMTCs. Qualified Active Low-Income Community Businesses (QALICBs) receive NMTC investments. Qalicbs are referred to as « businesses » but can be for-profit or not-for-profit businesses.