Community Affairs:
Article Archive > New York

New Incentives for Banks to Open Branches in Underserved Communities
In order to encourage new bank branches in areas with a demonstrated need for banking services, the New York State Banking Department created the Banking Development Districts (BDD) program. The program was recently expanded to provide additional incentives for banks to branch in underserved communities. The Enriched Banking Development District is open to both national and state-chartered banks. Banks receive state and local incentives, including more than $100 million in public funds available for deposits in new BDD branches, real property tax breaks for the branch, and assistance in locating suitable commercial space. In order to receive the BDD designation, a bank, in partnership with a local government sponsor, must submit an application to the New York State Banking Department. The goal of the Enriched BDD Initiative is to expand the program in unbanked communities across the state. There are currently 11 areas of New York City designated as prospective new BDDs.

For further information, please contact Daniel Delehanty at the NYS Banking Department at (212) 709-3574 or daniel.delehanty@banking.state.ny.us.
[Published in News from the Districts, Community Developments, Spring 2006]

Investing in Sustainable Forestry
Rural banks in northern New England and upstate New York now have the opportunity to invest in a vital industry sustaining their communities: forestry. Under a new investment fund introduced by Coastal Enterprises, Inc., banks can receive tax credits for their participation in a program providing long term working capital for sustainable timber harvesting and forest management across the northern regions of Maine, New Hampshire, Vermont and New York. The project has received an allocation of New Markets Tax Credits, and investors purchasing these tax credits will be capitalizing a fund supporting forest-based businesses such as paper mills while helping to sustain jobs and maintain working forests and receiving a direct credit to federal taxes at the same time. Last year, Coastal Enterprises celebrated its 25th year of providing critical support to community development initiatives in Maine, and is now expanding its market to encompass all of the northern New England and upstate New York.

For further information about this and other funds in these rural geographies, contact Coastal Enterprises, Inc, at (207) 882-7552.
[Published in News from the Districts, Community Developments Investments, Summer 2004]

Lower Manhattan Gets Affordable Housing
HUD, the state and city of New York, and Lower Manhattan Development Corp., are working together on affordable housing in Lower Manhattan to revitalize the area effected by the September 11th terrorist attacks. The agencies will implement a $50 million affordable housing initiative in Lower Manhattan that will fund 300 residential units for working families. The program will provide subsidies for affordable housing tied to the New York Liberty Bond program, which is a joint city/state partnership that provides tax-exempt bonds for the construction and renovation of commercial and residential facilities. The bonds are an incentive for developers operating in the residential market in Lower Manhattan by making construction and/or permanent mortgage loans for residential rental projects located in the area. This affordable housing initiative compliments the plan by Mayor Michael Bloomberg, "New Housing Marketplace: Creating Housing for the Next Generation." The Mayor's plan dedicates $3 billion in funds over the next five years, creating or preserving 65,000 units of affordable housing in NYC.

Contact: Lower Manhattan Development Corp. (212) 962-2300.
[Published in News from the Districts, Community Developments, Winter 2003]

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