icon Blueprint for December

Everybody Wins

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4 min read

At a stage where criticizing government as being dysfunctional and posting opinions have become our national pastimes, it is palliative to take a comprehensive look at the New Markets Tax Credits program as an antidote to cynicism and self-celebration. NMTC is a grand coming together of federal and local government agencies, private sector for profit and not for profit developers, and an array of financiers for the good of communities both large and small. It is a program that has inspired the creation of health centers, schools, food markets, training centers, arts centers and much more in areas in which they would not exist but for this initiative. It is not just a win-win; it is a win-win-win-win-win. Communities win by gaining new facilities; cities and citizens win by gaining new jobs; governments win by gaining new tax revenue from the newly employed; investors win from gaining tax credits against income; developers win from gaining new assets; and we as a society win by gaining new pride in these accomplishments.

And yet, NMTC is not without its own irony: despite its paramount success in improving lives all across the country, it is a temporary program that, to date, requires annual renewal. Sometimes you are just forced to say, “What the hell?”

This year is the 15th year since implementation of the program, an idea inspired by Robert Kennedy, promoted by Jack Kemp and finally established via a compromise between President Bill Clinton and lawmakers. (And, by the way, that’s another win: a government program that evolved out of bipartisanship.) So we asked our staff writer Joel L. Swerdlow to go back and trace the history of the program, the effect it has had on American cities and its current statutory status. (Proven But Not Yet Permanent).

As examples of how creatively and beneficently that program is being utilized, our other regular contributors look at case studies of two new projects funded by NMTC. Bendix Anderson reports on the development of the Muller Center in the Bronx, New York that will provide both housing for the homeless and job training to try to end their battle with homelessness. (Building a New Life). And Mark Olshaker reports on the development of the Lucille Ball Comedy Center in Jamestown, New York, the beloved comedienne’s hometown, that will not only be a training ground for new talent, but also attract attention to a community in need of growth (We All Love Lucy).

In addition to all the proponents of NMTC who have used this program and its tax credits to fund construction and are interviewed in Joel Swerdlow’s historical overview, Darryl Hicks sits down for a Talking Heads interview session with Michael Rubinger, who will be stepping down next June after 35 years with and 16 years as President and CEO of the Local Initiatives Support Corporation (LISC), which invested $1 Billion in community development projects in the past year alone.

History is a force in the present that propels us into the future. While we chronicle the emergence of a vital program, we also want to look ahead at those who will be responsible for sustaining and building on its legacy. At NH&RA’s Fall Forum in Boston in November, our Next Gen group of future company leaders had the privilege of hearing about the direction of affordable housing from David A. Smith. We share that presentation with you in both a report from team member Lauren Anderson (Learning to Lead) and another straight from the guru’s pen (David Smith: The guru is in)

So if you are in need of encouragement about what government and business can accomplish together (and who isn’t), please read on and enjoy.

Marty Bell, Editor