Municipalities across the country continue to explore innovative financing tools to support economic growth, community revitalization, healthcare access, workforce development and catalytic investment in underserved areas. One increasingly effective model is the use of municipally sponsored Community Development Entities (CDEs) to deploy New Markets Tax Credits (NMTCs) in alignment with local priorities. Ft. Wayne’s CDE is a partnership between the City of Ft. Wayne, Indiana and the Summit Development Corp.
FWNMRF, a certified CDE, provides one example of how municipalities can successfully utilize the NMTC program to drive measurable community impact while supporting broader economic development goals.
Leveraging New Markets Tax Credits To Advance Community and Economic Development
In January 2026, the U.S. Treasury Department awarded FWNMRF $50 million in New Markets Tax Credit allocation authority, marking the organization’s seventh allocation award and fourth consecutive allocation round success. Since inception, FWNMRF has received a total of $283 million in NMTC allocation authority.
The sale of these tax credits is expected to generate approximately $10 million in additional project financing capacity, helping support projects that may otherwise face funding gaps or limited access to traditional capital sources. The revenue from FWNMRF’s investments is reinvested in other impactful projects for the city, including affordable housing, health care, child and community centers, as well as a source of matching grants for a small business loan fund.
A Municipal Approach to Community Investment
As a city-sponsored CDE, FWNMRF demonstrates how municipalities can strategically participate in the NMTC program to support projects aligned with long-term community and economic development objectives. P.L. 119-21, commonly known as “The One Big Beautiful Bill Act,” made the New Markets Tax Credit permanent, and the program receives $5 billion annually in allocation authority to award to CDEs to support investments in underserved communities.
FWNMRF’s portfolio reflects a broad range of impact-driven investments, including:
- Downtown revitalization projects
- Workforce training and education facilities
- Community healthcare infrastructure
- Homeless services and supportive housing initiatives
- Domestic manufacturing and job retention efforts
Projects supported through previous allocations include:
- The Landing revitalization project in downtown Fort Wayne
- Marshall County Career Innovation Center in Plymouth, Indiana
- YMCA Community Center in Muncie, Indiana
- A packaging facility in Defiance, Ohio
- Vincent Village Homeless Shelter in southeast Fort Wayne
- Neighborhood Health Oxford Neighborhood Center in southeast Fort Wayne
These investments illustrate the flexibility municipalities can achieve through a CDE structure while directing capital toward projects that generate both economic and social impact.
Catalytic Impact Beyond Financing
In addition to providing direct financing support, municipal CDE participation can help projects attract additional investment and strengthen broader community revitalization efforts.
“For many people, the closing of Charity Hospital and other facilities changed the way they received healthcare. We are committed to being an integral part of filling the primary care void those closures created. We offer people a community-based medical home — one team in one location. We will soon provide more services and more professionals in a new building that triples the facility we have now.”
– Angie Zaegel Hannon
Neighborhood Health President and CEO
This type of catalytic impact is often a key advantage of municipally aligned CDEs. By combining local knowledge, strategic priorities, and financing tools, municipalities may be better positioned to identify transformational projects and support long-term community outcomes.
Spotlight Impact
Over the last five years, Fort Wayne has created approximately 1,454 construction jobs and 1,611 permanent jobs, built or rehabilitated more than 1.6 million square feet of facilities, and invested $128 million in low-income communities in its service area.
Considerations for Municipalities Exploring a CDE Structure
For municipalities considering the development or expansion of a CDE strategy, the Fort Wayne model demonstrates several potential advantages:
- Alignment of NMTC deployment with local development priorities
- Increased access to flexible financing tools
- Ability to support projects with significant community impact
- Enhanced credibility with additional funding sources and investors
- Long-term platform for economic and community development initiatives
As communities continue seeking innovative approaches to redevelopment and investment, municipally sponsored CDEs may provide a scalable framework for advancing strategic economic development goals while delivering measurable community outcomes.
Strategic Support in Action
Since 2021, Cherry Bekaert’s Strategic Financing Services team has served as an integral advisor to FWNMRF, helping raise and manage $180M of the CDE’s NMTC allocation through application writing, compliance and asset management services.
