June 3, 2006 - The U.S. Treasury Department has awarded Local Initiatives Support Corporation (LISC) New Markets Tax Credits (NMTCs) that will generate $140MM in investments to help spur economic development in disinvested communities across the country. The LISC allocation is the third-largest among the 63 awards announced today, and the largest made to any nonprofit participating in this year's $4.1 billion round of credits.

"This New Markets award builds on the $7 billion LISC has already invested in to low- and moderate-income neighborhoods over the last 25 years," noted Michael Rubinger, LISC's president and CEO. LISC expects to make an additional $1 billion in community-focused grants, loans and equity investments in 2006.“We have already deployed most of the $155 million we raised from our previous NMTC allocations to support the development of more than 1.1 million square feet of commercial space, 130 new homes and 5,200 jobs that otherwise would not exist," Rubinger explained. "We're pretty proud of those numbers, and we are thrilled that the Treasury Department sees the value of our expanded involvement in this important program."

NMTCs—which were first allocated in 2002—have already proven themselves to be a highly efficient means of attracting additional private capital to community revitalization efforts, and represent a growing piece of the 27 million square feet of retail and community space LISC has financed over the years. "Our funders and investors have been very supportive of the innovative NMTC projects on which we are focused," said Rubinger. Specifically, LISC has closed on 15 NMTC projects to date, ranging from the redevelopment of a historic Buffalo church into gallery/office/performance space, to the financing of a motorcycle parts manufacturer in rural Wisconsin, to the construction of a senior community center and new commercial space in Seattle's historic Pike Place Market.

New Market Tax Credits and Greater Kansas City LISC
A New Markets Tax Credit project has never been done in Kansas City, but Greater Kansas City LISC believes that now is the time. “We have put a lot of time and energy into projects to help them fit the New Markets Tax Credit criteria and we are confident that Kansas City will be eligible for financing in the future,“ said John Wood of Greater Kansas City LISC. While National LISC will make the award decisions, Greater Kansas City LISC will be in charge of educating stakeholders about NMTC, identifying potential NMTC transaction opportunities, and taking an active role in generating potential NMTC transactions. As John Wood stated “Our (GKC LISC’s) role will be to advise and counsel possible projects to give them the best chance of being awarded financing.”

For more information about New Market Tax credits please contact
John Wood at Greater Kansas City LISC
816.753.0055 ext. 17