Rapoza Associates brings a unique perspective to its work on the New Markets Tax Credit (NMTC) in that it is the only firm to have been involved in every aspect of the program from the very beginning. It has played a vital role in the design of the NMTC, the program's consideration by Congress, rulemaking, federal implementation, and the awarding of allocations. In fact, the firm has been able to accomplish this work because of its long track record in federal housing and community development policies and programs, its considerable record of success dealing with Congress on these issues, its strong understanding of the ways in which federal agencies work, and its longstanding relationship with local, regional and national organizations working to improve America's urban and rural communities.
Rapoza Associates worked closely with the Clinton Administration to develop the NMTC – the largest new federal community development initiative in 15 years – and advocate for its enactment into law. Once the NMTC was enacted as part of the Community Renewal Act of 2000 , it has staffed the work of the Coalition to support mission-driven community development entities (CDEs) and their ability to effectively utilize the Credit to serve economically distressed communities. The Coalition has seen its membership grow to over 120 CDEs, investors, and professionals working with the NMTC. During the last six years, Rapoza Associates has worked with the Coalition and the Bush Administration to launch the program and develop implementation regulations and procedures.
Rapoza Associates has published a number of important manuals and documents on the NMTC. These publications include technical assistance binders on the Credit and a series of case studies on the use of the NMTC for community facilities. Most recently, the firm has published for the New Markets Tax Credit Coalition survey results of organizations receiving the first two rounds of Credit allocations. It has also conducted over a dozen workshops on the NMTC attended by more than one thousand people.
Round I Survey Results
Round II Survey Results
Round III Survey Results
Like all federal tax credit programs, the NMTC is extremely complex. Since Rapoza Associates has worked on behalf of the NMTC from its inception, we understand all the provisions of the law and regulations as well as their purpose. This experience has put the firm in a unique position to provide technical assistance in planning, developing, and managing a lending or investment program financed with the NMTC. We cannot only explain all the details of the New Markets Credit; we can also explain how they got there.
Rapoza Associates has also worked with a number of CDEs on preparing applications for Credits. With our assistance, clients of the firm have received hundreds of millions of dollars in NMTC allocations. Our clients work in urban areas and rural communities. They make small business loans and equity investments as well as provide real estate financing. Our assistance includes preparing and commenting on applications, advice on strategy in preparing applications, and project and product design.