Whats the definition of a low income community?
A census tract with either less than 20 percent poverty or greater than 80 percent of median family income of the area. Much of the tax credit has been targeted to even more severely economically distressed census tracts, for example tracts with either poverty less than 30 percent, MFI greater than 60 percent of the area, or unemployment rates 150 percent of the national average. How does the NMTC work? The CDFI Fund conducts an annual national application process to allocate the NMTC among certified Community Development Entities. The allocation received by the CDE can best be thought of as an “investment authority.” The 39 percent NMTC is created by the act of cash equity investment into a CDE. The NMTC Program has a number of underwriting rules to qualify businesses and regulations that affect the deal structuring. The goal of the program is to get capital to communities that have not previously been able to access capital markets and to create measurable economic impact in these co
