Innovative Financing to Create and Sustain Healthy, Equitable Communities
Products > New Markets Tax Credit Program

New Markets Tax Credit Program

MHIC is recognized as a national leader in the use of New Markets Tax Credits, the federal program created to stimulate economic development in low-income communities. Many of the financing structures we have crafted have been 'firsts', considered models for similar financings used for other projects throughout the country. Since the New Markets Tax Credit Program was launched in 2000, MHIC has closed 110 projects totaling $907 million of NMTC allocation and $895 million in project financing.

The Record Company

MHIC provided $4.85 million in NMTC financing as one of four CDEs financing the construction of a new $25.4 million, 70,000- square foot YMCA in Lynn.

MHIC provided $4.25 million in NMTC financing and $1.5 million in debt financing to The Record Co., a nonprofit that provides equitable access to affordable recording and rehearsal space to Boston-area musicians.

Using NMTCs, MHIC finances developments throughout New England, typically in one of four categories: business loans and industrial manufacturing, community health centers, nonprofits providing community services, and commercial real estate and neighborhood revitalization.

MHIC's NMTC program finances developments that are not feasible without subsidy, that is, without the gap financing that this type of capital provides. Our credit standards are more flexible than traditional sources of capital. Our most important consideration is impact - the public benefits to be generated, the community support received, the job creation/retention potential and the resulting economic impact of the venture.

For examples of developments financed through MHIC's NMTC program, click here.