CAHEC RECEIVES $30 MILLION IN
NEW MARKETS TAX CREDITS

CAHEC New Markets, LLC, a for-profit subsidiary of CAHEC, has received an allocation of $30 million in New Markets Tax Credits (NMTC). CAHEC New Markets is one of 99 community development entities (CDEs) that received $5 billion in 2009 NMTC awards announced on October 30 by Treasury Secretary Tim Geithner.

Created by Congress and signed into law in 2000, the New Markets Tax Credits program is designed to stimulate economic and community development and job creation in low-income communities by attracting investment capital from the private sector. Taxpayers invest equity capital in qualified CDEs in exchange for a credit against their federal income taxes. In turn, CDEs are required to invest the proceeds in low-income communities, areas that traditionally have not attracted the attention of venture capitalists.

CAHEC New Markets, LLC (CNM) will support the development and redevelopment of commercial and mixed-use real estate primarily through the rehabilitation of historic buildings in distressed communities and in localities that have difficulty attracting revitalization investment capital, with a particular emphasis on rural areas. CNM's investments will offer a range of real estate financing throughout the Southeast and mid-Atlantic region, combining NMTC with historical rehabilitation credits to render feasible otherwise uneconomical projects. Both senior debt and subordinated debt will have lower interest rates and more flexible underwriting terms, including higher loan-to-value ratios, lower debt coverage ratios and non-traditional forms of collateral.

To learn more about CAHEC New Markets, LLC, contact Chuck Newcomer at (919) 788-1802 or cnewcomer@cahec.com.
To learn more about New Markets Tax Credits, click here.