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New Market Tax Credits Allocations Launches Phoenix CDC
The Phoenix Community Development and Investment Corporation (PCDIC) received a $170 million allocation of new markets tax credits during the first round of funding in 2002. The organization was formed by the city of Phoenix. PCDIC intends to develop and rehabilitate blighted areas of the city to stimulate economic development and jobs. PCDIC plans to use the funds in all of the city's distressed urban areas. Development will be funded with below-market rate loans and equity investments, using a $133 million commercial real estate fund, a $30 million equity fund, and a $7 million small business fund. The real estate fund emphasizes the development of commercial real estate projects, including retail developments, hotels, and office buildings located in low-income areas. The equity fund is targeted primarily at Phoenix's burgeoning biotechnology sector. The small business fund will provide start-up and expansion loans for working capital and equipment purchase and will provide borrowers with 40 hours of free technical assistance.

Contact Roberto Franco, assistant director of Phoenix's Community and Economic Development Department, at roberto.franco@phoenix.gov.
[Published in News from the Districts, Community Developments, Fall 2004]

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