How Do I Stay Compliant Throughout the Lifecycle of a NMTC Project?
Receiving a New Markets Tax Credit (NMTC) allocation is a tremendous accomplishment for a Community Development Entity (CDE). But that is just the beginning of the journey. Some of the most challenging work to maintain that funding stems from its successful deployment. That is achieved through compliance and asset management, and meticulous accounting and bookkeeping.
Cherry Bekaert is one of the few firms in the industry to provide a full suite of NMTC Management Services. Our team of industry experts focus on the following:
Capital Deployment
The NMTC Application is the guiding document that allows a CDE to receive NMTC allocation. Our Management Services team supports the NMTC allocation process through a series of services. These activities include borrower application procedures, pipeline management, collection of due diligence documents, securing NMTC investors, developing CDE closing documents, and leading the CDE through successful transaction closings.
CDE Compliance and Asset Management
Utilizing a meticulous process, our team ensures all information is accurately maintained and recorded on time and in adherence to transaction documents and Treasury’s strict guidelines. Our team can provide compliance services to fund, CDEs, lenders, Qualified Active Community Low-Income Business (QALICB), borrowers and investors.
Servicing
Our team manages the billing and collection of debt service and fees as required per the transaction documents and directs and manages the transfer of funds between the transaction accounts.
Accounting and Bookkeeping
TAG provides accounting services such as bookkeeping and financial statement preparation and interacts with external accounting resources on all related tax and audit issues.
Policies and Procedures (P&P)
Cherry Bekaert creates policies and procedures tailored to your organization’s needs, including:
- Governance
- Deployment
- Compliance
- Asset Management
- Servicing
Learn more about our additional strategic financing capabilities:
Case Studies
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Revitalizing a Mixed-Use Real Estate Development
The Landing
The Landing used the New Markets Tax Credit program to revitalize a mixed-use real estate development in downtown Fort Wayne, IN. NMTCs supported the historic restoration of seven buildings and one additional new construction building with apartments, commercial and retail space.
- NMTC Allocation: $12,000,000
- 579 Direct Jobs Created
- 14 Affordable Housing Units
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Creating a Mixed-Use Medical Office Facility
River District Tower
The Dan River Research Building underwent a major renovation with the support of NMTCs, creating a mixed-use medical office facility in Danville, VA. River District Tower utilized NMTCs and additional sources of funding including Federal and State Historic Tax Credits, creating jobs, and providing the community to an array of health services.
- NMTC Allocation: $20,000,000
- 130 Direct Jobs Created
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Developing a Multi-Faceted Agribusiness
Limehouse Produce
Limehouse Produce developed a multi-faceted agribusiness project in North Charleston, SC. The Innovate Fund provided NMTC allocation to Limehouse produce. The project will provide residents with accessibility to jobs and an apprenticeship program. Limehouse Produce will also provide support to local food banks.
- NMTC Allocation: $9,000,000
- 145 Direct Jobs
- 70 Induced/Indirect Jobs
“Cherry Bekaert is one of the few firms in the industry to provide a full suite of NMTC Management Services to CDEs.” – Lisa Gibson, Director, Strategic Financing Services
