In 2011 the Service released final regulations which provide how \u201ctargeted populations\u201d may be treated as \u201clow income communities\u201d where projects are eligible for the New Markets Tax Credit. Similarly the CDFI Fund amended the form of its allocation agreement to elevate the \u201ctargeted populations\u201d criteria to one of its four primary criteria. The result is that satisfaction of the \u201ctargeted population\u201d requirements under the Code may alternatively qualify a project as located in a \u201clow-income community\u201d and the satisfaction of the requirements under the allocation agreement may elevate the project to \u201chighly distressed\u201d status. Historically \u201ctargeted population\u201d transactions have been challenging because of the added requirements of initially qualifying individuals as \u201clow-income individuals\u201d and insuring that future individuals will qualify as \u201clow-income individuals\u201d during the 7 year tax credit compliance period. While the final Treasury regulations and the revision to the allocation agreement will encourage the use of the \u201ctargeted population\u201d criteria, the qualification and compliance requirements of using the \u201ctargeted populations\u201d criteria will continue to be a hurdle for both community development entities and tax credit investors for all but the most compelling projects.<\/p>\n","protected":false},"excerpt":{"rendered":"
In 2011 the Service released final regulations which provide how \u201ctargeted populations\u201d may be treated as \u201clow income communities\u201d where projects are eligible for the New Markets Tax Credit. Similarly the CDFI Fund amended the form of its allocation agreement to elevate the \u201ctargeted populations\u201d criteria to one of its four primary criteria. The result … <\/p>\n
Continue reading “The Future of NMTC Targeted Population Transactions”<\/span><\/a><\/p>\n","protected":false},"author":168,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[32,12,23,41],"ppma_author":[89],"class_list":["post-47","post","type-post","status-publish","format-standard","hentry","category-new-markets-tax-credit-program","tag-community-development-entities","tag-momjian","tag-new-markets-tax-credits","tag-targeted-populations"],"authors":[{"term_id":89,"user_id":168,"is_guest":0,"slug":"ajmomjian","display_name":"Arthur J. Momjian","avatar_url":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-content\/uploads\/sites\/9\/2014\/07\/momjianart-125x150.jpg","author_category":"","last_name":"Momjian","first_name":"Arthur J.","job_title":"","user_url":"http:\/\/www.duanemorris.com\/attorneys\/arthurjmomjian.html","description":"Read Art's bio.<\/a>"}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/posts\/47","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/users\/168"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/comments?post=47"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/posts\/47\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/media?parent=47"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/categories?post=47"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/tags?post=47"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/newmarketslaw\/wp-json\/wp\/v2\/ppma_author?post=47"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}