Neil Freeman, President of the Urban Development Fund, LLC (UDF), an affiliate of Aries Capital, is pleased to announce that UDF recently received an allocation totaling $35 million under the New Markets Tax Credit (NMTC) program for use in the recovery and redevelopment of low-income communities across the United States.
This is the organization’s sixth NMTC award, bringing the total allocation dollars received to-date to $292.5 million, and making UDF one of the most successful Community Development Entities (CDE). UDF is one of only six organizations out of 265 across the country to have received six or more such allocations by the U.S. Department of Treasury since the inception of the program in 2000.
“The most recent NMTC allocation is a direct testament to the dedication of the team at UDF,” said Freeman. “UDF is committed to researching redevelopment projects that will provide a significant economic impact to their communities such as the St. Charles Hilton in New Orleans, La Gran Plaza in Ft. Worth, and Roseland Medical Center in Chicago. UDF has also supported community facilities including Briscoe Art Museum in San Antonio and Clemens Center Theater in Elmira, NY. Additionally, the allocations have enabled UDF to assist in the Hurricane Katrina Gulf Opportunity Zone, an area that was, and still is, in dire need of new economic endeavors. We look forward to continuing our work throughout the country with this new allocation.”
Established by Congress, the NMTC was created to stimulate economic opportunity and job creation in low-income communities. The program permits individual and corporate taxpayers to receive a credit against Federal Income taxes for making Qualified Investments in investment vehicles known as Community Development Entities (CDE).
UDF will provide debt and equity financing at favorable terms to rehabilitate real estate in low-income communities across the country. UDF’s primary focus is the redevelopment of retail, hotel, industrial, office space, and community centers to increase employment opportunities for the residents of low-income communities. With this additional allocation, UDF intends to support projects that will provide much needed jobs, healthcare, and other goods and services to residents of low-income communities.
“We are humbled to have received our sixth allocation from the U.S. Department of Treasury,” said Freeman. “Funding low-income urban communities throughout the past several years has been an incredible experience. We have been able to assist with vital redevelopment projects which otherwise might have gone to the wayside. We are grateful for this new opportunity and look forward to continuing our efforts.”
Urban Development Fund was formed by Aries Capital to provide capital to developers of real estate projects that have a catalytic impact on community revitalization in underserved urban markets. UDF utilizes the subsidy afforded by the New Market Tax Credit to offer more favorable rates and terms that would not have been available to projects in the marketplace and is committed to investing all of its NMTC equity in communities designated as areas of higher distress by the CDFI Fund. UDF has been successful in creating stable employment opportunities and construction jobs for residents of low-income communities, renovating decaying or dilapidated structures, providing much needed goods and services, and spurring economic development in low-income neighborhoods where it is needed most.