HRV’s Fourth Award Brings Total to $160 Million for Economic Revitalization in Low-Income Communities
NORFOLK, VA (November 5, 2009) —Hampton Roads Ventures (HRV) announces that it has been selected to receive a $60 million Round VII award of New Markets Tax Credits. This is the fourth award of its kind for HRV.
“HRV is excited to be selected from a pool of 249 applicants to receive an additional allocation,” said W. Sheppard Miller, III, HRV Chairman of the Board. “We’ve already put nearly $100 million to work in several communities throughout Virginia. Bringing our total allocation to date to $160 million, we will continue to expand our efforts to include more development projects like the inner-city and rural commercial, community and cultural spaces we’ve helped to rejuvenate.”
The NMTC program, administered by the federal Community Development Financial Institution, allows investors to earn tax credits for investing in community development firms like HRV, which then use these investments to finance economic revitalization activities in low-income communities.
“This NMTC award is particularly important for economic development firms and their communities during today’s economic crisis,” said Robert K. Jenkins, Jr., HRV President and Chief Executive Officer. “HRV continues to commit itself to strengthening and revitalizing low-income neighborhoods. We now have the ability to bring about even more opportunities for low-income areas, which will lead to a stronger economy through economic growth and increased jobs.”
HRV was the first to combine funds from the NMTC program with both tax-exempt bond financing and Historic Tax Credits programs, providing financing to local developers and nonprofits in order to help finalize community projects. The redevelopment of Staunton, Va’s former Robert E. Lee High School into a state-of-the art senior citizen facility with residences and cultural activities and the new Winegar Medical Center in Duffield, Va providing much-needed medical services in closer proximity to area residents are recent examples of how HRV has continued to create innovative financing techniques to positively impact communities.
“We are committed to expeditiously deploying our Round VII credits to help ensure the success of a variety of community economic projects throughout Virginia and are particularly optimistic about the prospect of combining the NMTC program with the growing trend of revitalization sparked by community ownership and the inclusion of these residents in their own redevelopment projects,” said Jenkins. “I cannot thank HRV Vice Chairman Rodney Jordan enough for introducing this innovative community economic development concept that has proven to be successful for West and East Coast community economic development practitioners”
Mr. Jordan became aware of this exciting community development concept during one of his almost daily visits to low-income communities across the country as an official of One Economy, a national non-profit organization working to bring the resources of the Internet to inner city neighborhoods.
About the New Market Tax Credit Program
The NMTC Program, established by Congress in December 2000, provides individual and corporate taxpayers with a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). Substantially, the CDE must use all of the taxpayer’s investment to make qualified investments supporting certain business activities in low-income communities. For more information on the NMTC program, visit www.cdfifund.gov
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