Warrensville Heights, Ohio  – Congresswoman Marcia L. Fudge (D-OH11) is pleased to announce today a $53 million dollar allocation of tax credits to two Cleveland Community Development Entities (CDEs) by the U.S. Department of the Treasury. The Cleveland New Markets Investment Fund II LLC, controlled by Cleveland Development Advisors, Inc. has been selected to receive a $35,000,000 allocation.  The Northeast Ohio Development Fund, LLC, controlled by The Cleveland-Cuyahoga County Port Authority will receive an $18,000,000 allocation.

The tax credits are distributed through the New Markets Tax Credit (NMTC) Program administered by the Treasury Department.  This highly successful program creates jobs and stimulates economic and community development in the nation’s low income communities.  Private investors who invest equity in qualified CDEs are entitled to receive tax credits. The CDEs in turn must commit to using those investments in projects that benefit low income areas or by hiring low income employees. Institutions must adhere to all program requirements to receive the tax credits.

Congresswoman Fudge noted competition for New Market Tax credits is intense.  “Only 15% of applicants nationwide received an allocation. I am pleased that the Northeast Ohio Development Fund and the Cleveland New Markets Fund II have been found to be among the best of the best,” said Congresswoman Fudge. “Whether by helping new businesses grow or creatively investing in “clean technology”, our community ventures are building a brighter economic future for the entire region.”

Cleveland New Markets Investment Fund plans to use its 2010 NMTC allocation to invest in real estate and business development projects that will serve as anchor investments to attract further growth. The Northeast Ohio Development Fund plans to utilize its NMTC allocation to finance industrial job creation in the local International Trade District Area of Cleveland, renewable energy projects and business sector “clean technology.”

Click here and here for the award notifications. 

Background on the NMTC program can be viewed here.

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