UNDERWRITING REQUIREMENTS

NMR will give priority to projects which have been identified by the City through a participatory planning process as the highest priorities for economic development of Low Income Communities in the downtown or near-downtown area.   

Projects proposed for NMTC financing will be underwritten by NMR’s staff for market demand, economic feasibility, timetable, and experience and capability of the development team. 

Every project will be required to meet the following conditions:

1.  Not Otherwise Feasible

In order to qualify for NMTC financing from NMR, a project sponsor must demonstrate, to the satisfaction of the NMR Board, that the proposed project would not be feasible without the use of New Markets Tax Credits.

2.  Community Impact

In addition, the project sponsor must demonstrate that the proposed project will have a catalytic impact on the economic development of the surrounding low income community.  This impact may be shown in some or all of the following ways:

• Creation of new jobs for low income persons or residents of the low income community
• Increasing wages or incomes for low income persons or residents of the low income community
• Assisting businesses owned by residents or committed to remain in the low income community
• Assisting minority or women owned businesses
• Providing healthcare benefits to low income persons or residents of the low income community
• Financing wealth creation or asset accumulation by low income persons or residents of the low income community
• Providing goods and services to low income persons or residents of the low income community
• Increasing the tax base and tax revenues