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NMTC Case Study: Pittsburgh Urban Initiatives, LLC

The Urban Redevelopment Authority of Pittsburgh (URA) announced last September that the Community Development Financial Institutions Fund (CDFI Fund) had awarded $50 million in New Markets Tax Credits (NMTC) to Pittsburgh Urban Initiatives (PUI). PUI is a Community Development Entity (CDE) affiliated with and sponsored by the URA, and one of only 100 entities in the nation to receive funding and one of only 16 CDEs serving local markets. 

The CDFI Fund awarded allocations to 100 Community Development Entities, representing 48% of the total pool of applicants. The individual allocation amounts ranged from $15 million to $65 million and the total amount allocated was almost $5 billion. Of this, 78% ($3.8 billion) of these investment proceeds will likely be used to support financing and investment in businesses operating in low-income communities. The remaining 22% ($1.1 billion) of these NMTC investment proceeds will likely be used to finance and support real estate projects in these same low-income communities.

PUI’s NMTC funding is overseen by the PUI Governing Board and Advisory Board, consisting of the URA executive director and URA board chairman, staff, foundations, and community development professionals who represent low-income communities throughout Pittsburgh. The URA is the City of Pittsburgh’s agency that works toward achieving the City’s economic development goals.

The URA website describes PUI’s mission as follows “to strategically invest in office, retail, mixed-use, and community facility developments designed to rehabilitate abandoned and blighted sites in the City of Pittsburgh. With continued success raising NMTC allocation available to Pittsburgh, PUI has helped drive increased investment activity in Pittsburgh’s neighborhoods to close deals that “but for” the NMTC would not be possible.”

PUI supports the community and economic development objectives of the Urban Redevelopment Authority of Pittsburgh. NMTC allocation awards to PUI have provided more than 3,792 permanent jobs, 4,443 residential units, and 3,066 construction jobs. In addition, NMTC funding of PUI projects has created over half a billion dollars in total project costs.

Since February 2011, including the current amount of $50 million, PUI has received seven awards for a total of $238 million in NMTC allocations. These awards have helped finance several Pittsburgh development projects, including East End Cooperative Ministry’s Community House, the Energy Innovation Center, Wood Street Commons, scattered site affordable housing in Garfield and East Liberty, 7800 Susquehanna Street, Point Park University’s Pittsburgh Playhouse, and City of Asylum.

“This NMTC allocation will allow the URA to continue investing in projects that create community benefit through jobs, improved access to commercial services such as fresh food, and much needed affordable for-sale housing,” said URA Executive Director Greg Flisram.

Senator Bob Casey (D-PA) also extended his compliments to PUI. “I’d like to extend my congratulations to Pittsburgh Urban Initiatives for securing $50 million in New Markets Tax Credits. This award will spur economic growth, job creation, and neighborhood revitalization, and I look forward to seeing the benefits that Southwestern Pennsylvanian communities will see as a result of this investment.” 

As a CDE, PUI’s hard work has had a substantial effect on low-income neighborhoods by facilitating New Markets Tax Credit (NMTC) investments for projects in Pittsburgh.

It is never too early to start preparing for the next round of NMTC allocations. Savage & Associates can help you every step of the way.. Call us today!

Let’s Work Together to Develop our Communities [update – review my edits and replace below]

If you want to learn more about NMTCs, contact Savage & Associates at 215.880.9441 in Philadelphia, or 202.817.3941 in Washington D.C. to arrange a consultation. Dionne Savage can assist you to evaluate the benefits provided by the New Market Tax Credits, Low-Income Housing Tax Credits, C-PACE, Historic Tax Credits programs, and other vital economic development tools that benefit low-income communities throughout the United States. Visit our website at Savage & Associates 24 hours a day, seven days a week for more information.