CAHEC New Markets Awarded $50 Million to Fuel Community Development in Underserved Regions

The U.S. Department of the Treasury's CDFI Fund has allocated $50 million in New Markets Tax Credit (NMTC) authority to CAHEC New Markets, a move set to significantly impact community development in the Southeast and mid-Atlantic regions. This allocation, part of the CY 2023 round, aims to finance projects that will bring about high-impact community facilities, addressing critical needs in education, healthcare, and social services.

Since its inception, the NMTC program has been a cornerstone for stimulating economic growth and job creation in low-income communities by attracting private sector investments. CAHEC New Markets, with this latest award, has now amassed a total of $270 million in NMTC allocations, a testament to its pivotal role in fostering community development. The organization's previous allocations have already made a mark, creating over 3,000 jobs, establishing educational facilities with 4,850 student seats, and providing 362 beds in shelters and recovery centers, alongside supporting healthcare facilities serving more than 53,000 patients annually.

Brian Oxford, Director of Community Capital at CAHEC New Markets, highlighted the competitive nature of the selection process and the organization's eagerness to deploy these funds towards projects that directly address community needs. This allocation is not just about the immediate financial boost but signifies a deeper commitment to tackling the systemic challenges faced by low-income communities, aiming for sustainable improvements in residents' quality of life and economic opportunities.

The anticipated outcomes of this funding are manifold, including the creation of additional jobs, enhanced access to education and healthcare, and the improvement of community facilities. Such investments are expected to have a ripple effect, stimulating further economic activity and drawing more resources to these underserved areas. The NMTC program's model of offering tax incentives to investors has proven effective in directing private capital towards projects that might otherwise lack funding, benefiting not only the immediate recipients but also contributing to the broader economic vitality of the regions.

As CAHEC New Markets gears up to allocate this new funding, the potential for transformative impact looms large. Given the organization's history of strategic investments in critical community projects, this $50 million allocation is poised to catalyze further development and investment, fostering a cycle of positive change in regions grappling with long-standing economic challenges. For the communities in the Southeast and mid-Atlantic, this funding represents a beacon of hope for better infrastructure, essential services, and new avenues for economic advancement.