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New Markets Tax Credit Program
The Atlanta Development Authority (ADA) and Central Atlanta Progress (CAP) created Imagine Downtown, Inc. as a community development entity to receive and direct New Markets Tax Credits to support economic development in distressed neighborhoods in Atlanta. Imagine Downtown, Inc. has received a total of $80 million in New Markets Tax Credits allocation authority. Assistance is available in the form of below-market interest rate loans with seven-year terms and interest-only payments.
The New Markets Tax Credit Program provides financial assistance to private-sector companies (for-profits and non-profits) seeking low-cost financing for real estate development projects that create positive targeted community benefits. These projects will:
- Create or maintain jobs for low-income persons or residents of low-income communities
- Increase wages or income for low-income persons or residents of low-income communities
- Finance or assist businesses owned by residents of or otherwise committed to remain in low-income communities
- Finance or assist minority- or female-owned businesses, or businesses owned by low-income persons
- Finance or assist businesses (including non-profit organizations) or real estate projects that provide childcare, healthcare, educational or other benefits to low-income persons or residents of low-income communities
- Facilitate wealth creation or asset accumulation by low-income persons or residents of low-income communities
- Provide goods and services to low-income persons or residents of low-income communities
- Create environmentally sustainable outcomes
Eligible Uses for NMTC funding
- Property acquisition
- New construction
- Rehabilitation of existing real estate
Types of Projects supported by NMTC funding
- Office
- Retail
- Manufacturing
- Community facilities
- Mixed-use Development (at least 20-30% commercial)
- Housing projects will not be eligible for this funding source
Qualified locations
Projects must be located in Atlanta (Fulton County, Georgia) and in a qualified census tract, as defined by the Federal program requirements:
- Poverty rate of 30%
- Average household income below 60% of area median income
- Unemployment of 1.5x the national average
Funding notes
- $5 million to $40 million is ideal range
- Contact us for projects requiring less than $5 million to determine eligibility or other options
For more information about New Markets Tax Credits, please contact Dale Royal (droyal@atlantada.com) at 404-614-8336 or Tyrone Rachal (trachal@atlantada.com) at 404-614-8339.
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