NORFOLK, VA (October 5, 2007)-Deputy Secretary of Treasury, Robert M. Kimmit and CDFI Fund Director, Kimberly A. Reed announced at a Friday, October 5, 2007 press conference in New Orleans that Hampton Roads Ventures (HRV) has been selected to receive a $50.0 million Round V award of New Markets Tax Credits. This is the third award of this kind for HRV, which received its first award of $15 million in 2003 and it’s second of $35 million in 2005.
HRV CEO, Robert K. Jenkins, Jr. was pleased and excited to hear of the award. “This NMTC award is particularly important for economic development organizations and their communities. HRV has committed 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.”
The NMTC program allows investors to earn tax credits for investing in community development organizations, like HRV, which then use these investments to finance economic revitalization activities in low-income communities. HRV has already put nearly $100 million to work in several communities throughout Virginia. Projects include the development of inner-city commercial and cultural spaces; recreating community cultural centers left dilapidated after years of non-use.
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 Norfolk’s Historic Attucks Theatre & Cultural Center and the adaptive re-use redevelopment of Roanoke’s once decrepit Dumas Hotel into a state-of-the-art neighborhood arts venue are just two examples of how HRV has created innovative financing techniques to positively impact communities.
While HRV’s projects may reach outside Norfolk, its impact on the Norfolk community is always evident. It recently developed a partnership with the NCP Federal Credit Union, a non-profit community development federal credit union in Norfolk. HRV invested $700,000 into the credit union, which will use the investment proceeds to make auto, resident, and commercial loans to low-income borrowers at lower interest rates.
HRV is committed to expeditiously deploying its newly awarded Round V credits to help ensure the success of various community economic projects throughout Virginia. Similarly, HRV is also committed to working with other Round V allocatees to deploy credits to other well deserving projects in communities throughout the southeastern U.S., particularly in Miami, where we recently opened a branch office.
About the New Markets 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 all of the taxpayer’s investment must be used by the CDE to make qualified investments supporting certain business activities in low-income communities. More information on the NMTC program can be found at www.cdfifund.gov.
