CDFI Fund Releases Updated NMTC Program Eligibility Criteria

The Community Development Financial Institutions Fund (CDFI Fund) has completed the first stage of its transition to updated program eligibility for the New Markets Tax Credit Program (NMTC Program) based on new census data.

The updated census tract eligibility data are based upon the 2006-2010 American Community Survey (ACS). Community Development Entities (CDEs) will be able to use the 2006-2010 ACS data to determine if Qualified Low Income Community Investments (QLICIs) are located in NMTC-eligible 2010 census tracts.

The Community Development Financial Institutions Program, Native American CDFI Assistance Program, and Bank Enterprise Award Program will also be updated based upon the American Community Survey later this year.

“The transition to the 2006-2010 American Community Survey will enable community and economic developers across the country to better target their investments in the low-income communities that need them most,” said CDFI Fund Director Donna J. Gambrell. “The updated census tract data will help the CDFI Fund and its awardees focus on the neighborhoods currently struggling as a result of the recent recession to be at the forefront of future investment activity.”

The CDFI Fund recognizes that CDEs may have already begun to structure potential QLICIs based on the 2000 census data. As a result, the CDFI Fund will allow current NMTC allocatees to use either 2000 census data or 2006-2010 ACS data applied to the 2010 census tracts to qualify QLICIs closed between May 1, 2012 and June 30, 2013.