Bea-Sustainable: Community Development Entities(CDE)- Adapt and Reuse Topic

Community Development Entity (CDE)

The New Markets Tax Credit (NMTC) program was enacted in December 2000 as part of the Community Renewal Tax Relief Act. This was meant to encourage private investment in low-income urban and rural communities. The program wanted to provide an incentive to increase investment in business opportunities in low-income communities and is doing this by way of the NMTC.

Community Development Entity (CDE) must be certified be eligible for NMTCs. To become certified the organization must demonstrate accountability to the community. CDEs successful in receiving an allocation must have a strong business plan, good management, proven track record of working with investors and proposed projects that will have a substantial impact in low-income communities.

Table 1

	CDE	HQ STATE	ALLOCATION (x $1 million)	SERVICE AREA
1	Phoenix Community Development and Investment Corporation	AZ	$170.0	Phoenix and surrounding area
2	National New Markets Tax Credit Fund, Inc.	MN	$162.5	National, with focus on CA, CO, MN, NY, OH, PA, TX
3	Community Development New Markets I, LLC	OH	$150.0	National, with focus on CO, IN, ME, NY, OH, OR, WA
4	Wachovia Community Development Enterprises, LLC	NC	$150.0	National, with focus on CT, FL, GA, NC, NJ, VA, PA
5	KHC New Markets CDE, LLC Series A	CA	$134.0	National, with focus on CA, FL, NY, OR, TX, UT, WA
		TOTAL	$766.5

Table showing the 5 CDEs with the Largest Allocations

Common community development entities use these funds to offer small business opportunities, low income housing and other community related activities.