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 Markets 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 Markets 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 Markets 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.