Presentation on Ohio and federal tax credits at the Ohio Roundtable of the Council of Development Financing AGencies

1. CDFA / Ohio
Roundtable
Council of Development Financing Association 09252012

2. • Background of Finance Fund
• New Markets Tax Credits Update
• Ohio New Markets Tax Credit
Council of Development Financing Association 09252012

3. Who we are
• Non-profit financial intermediary for the State of Ohio
• Founded 25 years and our initial focus was grants for
non-profit Community Development Companies (CDCs)
• Funding sources are from the private and public sector
(banks, philanthropic, SBA, ODOD, other)
• $200 million in capital over 25 Years
Council of Development Financing Association 09252012

4. Finance Fund Programs
• Federal and Ohio New Market Tax Credit Programs
• SBA Intermediary Lending Program (loans to small
businesses in Appalachia)
• New Markets Tax Credits (tax credits, loans, equity)
• Pre-Development and Economic Development Grant
Program (grants to CDCs for development projects)
• Linked Deposits
Council of Development Financing Association 09252012

5. Finance Fund Community Advantage 7(a)
• SBA Community Advantage: 7(a) Guaranteed Lender
• Statewide Coverage
• Mission-based lenders (primarily CDFIs) serving
distressed communities
• Loans under $250,000
• Targeted at distressed communities, veterans, LMIs,
EZs, HUBZones
Council of Development Financing Association 09252012

6. Finance Fund New Markets Tax Credits
• Statewide: $5.6 million Solar Vision: 5 solar installations
(with FirstMerit)
• Columbus: $1 million Sav a Lot Grocery
• Freeport: $6 million Freeport Press (with ODOD)
• Dayton: $10.2 million TechTown with Citywide Dev.
Council of Development Financing Association 09252012

7. Kent State Univ Hotel and Conf Center
• 95 room hotel, conference center
• Development Fund of the Western Reserve
• Finance Fund
• $15.6 million TPC
• Pizutti Development
Council of Development Financing Association 09252012

8. Ohio New Markets Tax Credit Program
• Parallel and enhance capital raising in partnership with
federal NMTC
• Similar eligible areas / communities
• 0%, 0%, 7%, 8%, 8%, 8%, 8%
• $10 million per year allocation; $1 million per project
• Some differences: Passive real estate, different tax
credit schedule
Council of Development Financing Association 09252012

9. Ohio NMTC 2012 Allocatees
• Stonehenge Community Development, LLC (Ohio)
• Ohio Community Development Finance Fund, LLC (Ohio)
• Development Fund of the Western Reserve (Northeast Ohio)
• Northeast Ohio Development Fund, LLC (Cuyahoga County)
• Cleveland New Markets Investment Fund II, LLC (Cuyahoga
County)
• Cincinnati New Markets Fund, LLC (Cincinnati central
business district, and Over-the-Rhine neighborhood)
Council of Development Financing Association 09252012

10. Ohio NMTC Prior Allocatees
• Cincinnati Development Fund
• Finance Fund
• Key Community Development New Markets
• Northeast Ohio Development Fund (Cleve Port Authority)
• Cleveland New Markets Investment Fund II (Cleve Dev Advs)
• Dayton Region New Markets Fund (Citywide)
• Cincinnati New Markets Fund II (Over the Rhine)
Council of Development Financing Association 09252012

11. O
St. Aloysius Orphanage, Cincinnati
Council of Development Financing Association 09252012

12. St. Aloysius Orphanage, Cincinnati
• $19.5 million renovation of historic property and multi-story
expansion
• 200 construction jobs, retain 160 employees, create 25 new jobs,
increase capacity to serve additional 200 children.
• 7+ acre site in Bond Hill, with 5 buildings, including the main building
– which date from 1856
• Major interior renovation including upgrades to handicap
accessibility, sprinkler systems, and a new roof, while the Glad
House will be renovated and include the addition of 12,000 square
feet of classroom space.
Council of Development Financing Association 09252012

13. O
St. Aloysius Orphanage, Cincinnati
• Historic Preservation Tax Credits ($1 million)
• New Markets Tax Credits
– Finance Fund: Federal: $7 million; Ohio: $1 million
– Consortium America CDE (affiliated with Trammel Crow) Federal
NMTC: $10 million
• U.S. Bank (Debt and Equity)
Council of Development Financing Association 09252012

14. Updates and Current Events
• Renewal of federal NMTC continues to be question: Congressional
tax extender has not yet passed
• CDEs working through the restructuring of NMTCs financed in first
round (7 years)
• Discussion about renewal of Ohio NMTC underway, active
discussion about changes in the program
• Need for an enhanced Ohio NMTC coalition
• Recent court decision challenges future of vital historic tax credit
program: Third Circuit decision challenging “meaningful investor
stake”
Council of Development Financing Association 09252012