Leveraging Federal Funding for Philadelphia
Since 2007, PIDC has been awarded $148 million in New Markets Tax Credit (NMTC) allocation from the federal government, which is aimed at revitalizing low-income communities and increasing economic opportunity nationwide.
These federal tax credits are a critical element in PIDC’s economic development toolbox. PIDC has invested $110 million of our NMTC credits into nine development projects to eliminate blight, create jobs, and transform neighborhoods in Philadelphia from Mantua to Kensington to North Philadelphia. These credits leveraged an additional $239 million in private investment to create more than 950 jobs and stimulate investment in the City’s most distressed communities. PIDC’s most recent award of $38 million in credits will be deployed over the next year.
PIDC’s participation in the New Markets Tax Credit program follows a long history of success in leveraging federal programs and funding. In 1995, PIDC piloted the nation’s first loan-pool using HUD’s Section 108 Loan Guarantee Assistance program to provide low-cost debt on subordinated terms to capital projects. By obtaining HUD’s approval of our underwriting criteria, PIDC is able to borrow pools of $15-20 million at a time under the program and re-lend it on an expedited basis to businesses, developers, and non-profits undertaking projects that create jobs for low and moderate income people. In total, PIDC has provided over $240 million in nine loan pools to more than 60 projects throughout the city creating or retaining 8,804 jobs, and just celebrated full repayment of our first pool.
Taking advantage of the U.S. Department of Energy’s Energy Efficiency Conservation Block Grant Program, PIDC partnered with the City of Philadelphia and The Reinvestment Fund, a national leader in the CDFI industry based in Philadelphia, to create a loan fund with flexible terms to stimulate energy efficient retrofits throughout the city and greater Philadelphia region. This innovative public-private partnership has brought $18.9 million in capital to nine projects, creating construction jobs and making way for a more energy-sustainable future in Philadelphia.