Senator Sherrod Brown Announces $85 Million for Economic Development

Two Ohio Organizations Awarded Millions in New Markets Tax Credits

May 28, 2009 -- WASHINGTON, D.C. – Senator Sherrod Brown (D-OH) today announced that two Cleveland-based organizations will be awarded an aggregate $85 million through the New Markets Tax Credit (NMTC) Program.

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The funds, made available through the American Recovery and Reinvestment Act, will support the existing tax credit program that works to create and save jobs, and develop real estate and business projects in both rural and urban distressed communities.

“These funds support a tax credit program to help kick-start local economies in Ohio,” Brown said. “By creating incentives for investors, this program will generate new economic opportunities to strengthen communities and create jobs.”

The two Ohio recipients, AHC Community Development, LLC and the Northeast Ohio Development Fund LLC will receive $55 million and $30 million respectively. AHC will apply the funds to operate more affordable rates and terms for borrowers investing in projects in low-income communities. The Northeast Ohio Development Fund, LLC will work with the Cleveland-Cuyahoga County Port Authority to finance economic development projects in Cuyahoga County.

The economic recovery package allocates $1.5 billion to the New Markets Tax Credit Program for organizations that applied under the 2008 round of Community Development Entities awards. The program enables taxpayers to apply credits to their federal income taxes for making qualified equity investments in designated Community Development Entities.

Source: Senator Sherrod Brown