$20 million in New Market Tax
Credits secured
SEATTLE—July
5, 2006—Seattle Housing Authority
has helped to bring $20 million in tax credits from the U.S.
Department of the Treasury to spur commercial investment in Seattle.
SHA was one of 63 organizations across the country, and one of just
two organizations in the state of Washington to receive such an
award. The treasury department awarded a total of $4.1 billion in
these “New Market Tax Credits” in early June.
These tax credits
are intended by the federal government to help promote access to
growth in urban and rural low-income communities. Seattle Housing
began preparations for this program by creating a new non–profit
called Seattle Community Investments. This non-profit will help to
oversee use of the tax credits and is made up of community residents
and service providers in SHA communities.
SHA’s Executive
Director Tom Tierney also serves as executive director of the new
non-profit. Development Manager Paul Fitzgerald prepared the
application for the tax credits and will continue to manage the
process for the new non-profit.
SHA intends to
use the New Market Tax Credits to stimulate investment in commercial
development at its HOPE VI communities. According to Fitzgerald, “We
expect that these tax credits will help us make commercial
investment in our new communities more attractive. The U.S. Treasury
created this program in order to balance the financial benefit of
the tax credits to investors with the return to the community.”
Commercial development will be aimed at enhancing the walkability
and services available.
The New Market
Tax Credit program is similar to the program that awards tax credits
for investment in low-income housing. With these incentives,
however, investors are rewarded with tax credits for investing in
commercial enterprises in low-income or developing neighborhoods.
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