PCDIC Deploys $13 Million in NMTC Allocation to Child Crisis Arizona
Phoenix Community Development & Investment Corp. (PCDIC) recently deployed $13 million in New Markets Tax Credit (NMTC) allocation to Child Crisis Arizona, a Mesa, Ariz.-based nonprofit focused on preventing child abuse and neglect. The deployment was part of PCDIC’s $60 million CY 2022 NMTC allocation from the U.S. Department of Treasury’s Community Development Financial Institutions Fund. The NMTC program is designed to stimulate private investment in projects that create substantial community impacts in economically distressed communities.
The NMTC allocation was provided to Child Crisis Arizona in order to enable the nonprofit to continue to provide and also expand its Early Childhood Education programs at three locations in the Valley. The nonprofit offers high-quality early childhood education through early Head Start and preschool programs provided to low-income families, addressing the needs of children ages birth to five years, and ensuring that children enter school prepared for success.
With this allocation, Child Crisis Arizona plans to increase its Early Childhood Education program capacity by 31%, serving an additional 96 children.
Child Crisis Arizona’s programs and services focus on prevention and intervention to break the cycles that lead to adverse childhood experiences and generational poverty, thus helping build strong families. This NMTC allocation will result in increased family engagement in the education of young children through parent teacher conferences, home visits, individualized screenings and assessments, parent workshops, community referrals and additional supports.
Another $30 Million in Funding Now Available to First-Time Homebuyers via Home in Five Platinum
The Home in Five Platinum program, a tax-exempt, bond-financed program that launched in late 2023, recently received an additional $30 million in bond funding for Series 2024A. The program is available to local mortgage lenders that are interested in offering below-market interest rates and down-payment assistance to first-time homebuyers and others who might qualify.
The interest rate for first mortgages for this series has been set at 5.95%. We expect to issue up to $200 million of bonds over the next two years, released to participating lenders in individual bond series.
The program was designed to complement the existing Home in Five Advantage program, which was established in 2012 by the Phoenix IDA and the Maricopa IDA, and has provided approximately $191 million in down-payment assistance to more than 25,000 low- and moderate-income homebuyers since its inception.
Interested lenders should note the unique characteristics of the Home in Five Platinum program compared to the Home in Five Advantage program (see detailed comparison chart).
For more information on either Home in Five Platinum or Home in Five Advantage, visit homein5advantage.com.
PCDIC-Funded Pilot Program Assists Small Businesses in Phoenix Impacted by Light Rail Construction
PCDIC, administered by the Phoenix IDA, invested $500,000 in a pilot program facilitated by Valley Metro and administered by Prestamos CDFI. The multi-year Small Business Financial Assistance Program (SBFAP) pilot provides financial assistance to Phoenix-based small and micro businesses directly impacted by construction along the light rail extension corridors.
PCDIC’s funding was designed to offer quicker and more direct access to offset operational costs for small and micro businesses that meet the eligibility criteria. PCDIC recently approved an increase in support level from $3,000 to $4,500, although the total investment remains the same at $500,000. The City of Phoenix provided additional funding for small businesses up to $9,000 through local transportation tax T2050.
During the second year of the SBFAP, 39 businesses received a total of $117,000 of funding, and a balance of $299,000 is carried over in the budget for the two years remaining in the program.
The Phoenix IDA Board of Directors is scheduled to meet at 3 p.m. Thursday, March 21, 2024.
