NEW YORK CITY REGIONAL CENTER-MANAGED ENTITY PROVIDES FUNDING FOR CONSTRUCTION OF A FIFTH CHARTER SCHOOL
Closed transaction will help fund construction of a new 45,979 square foot school for Comp Sci High serving 505 students in the Bronx
NEW YORK, April 17, 2023 /PRNewswire/ -- The New York City Regional Center is pleased to announce the closing of $15,000,000 in New Market Tax Credit financing to assist the construction of a new 45,979 square foot charter school in the Bronx. This is the fifth charter school that has utilized New Market Tax Credit ("NMTC") funding from a New York City Regional Center-managed entity and the third in the Bronx. The tenant of the new state-of-the-art facility will be Urban Assembly Charter School for Computer Science (d/b/a Comp Sci High), a not-for-profit corporation offering quality education to students in the Bronx.
The transaction utilized a portion of the $45 million in NMTC awarded in 2022 from the U.S. Department of Treasury to NYCR-CDE, a Community Development Entity managed by the New York City Regional Center. To receive a NMTC allocation award, the New York City Regional Center was required to demonstrate a mission and track record of providing investment capital for low-income communities.
The project will allow Comp Sci High, currently operating in a temporary split campus space co-located with the New York City Department of Education, to relocate to a permanent, unified home by Summer 2024. The new facility will be home to 505 students in grades 9-12 and feature 18 classrooms, small breakout rooms, computer science labs, a gym, cafeteria, and admin space. Of the 505 students, 90% will qualify for free or reduced lunch, 99% are minority, and 100% are anticipated to live within the surrounding low-income community whose poverty rate is 36.3%. The project will further contribute to the community through the creation and retention of 81 direct jobs and the creation of more than 100 new construction jobs.
Comp Sci High (www.compscihigh.org) is a computer science-focused high school that opened its doors in 2018. Its model involves a work-based learning program where students receive direct instruction on professional skills ranging from basic email etiquette to advanced presentation skills. Designated counselors help students participate in summer internships with leading tech and financial firms in New York City.
As mentioned above, this is the fifth charter school whose construction the New York City Regional Center-managed entity has help fund. Previous NMTC fundings include:
- $23 million for the DREAM Charter School in the South Bronx
- $18 million for Neighborhood Charter School in the Bronx
- $18 million for Promise Academy II in East Harlem
- $20 million for Achievement First Linden Middle School in Brooklyn
"We take great pride in supporting institutions that promote equitable and high-quality education to underserved students," said New York City Regional Center Co-Managing Principal George Olsen. "We are excited to continue our efforts to support the construction of new charter schools throughout the city and are looking forward to seeing Comp Sci High expand its footprint in the Bronx."
The NMTC Program was created by Congress in 2000 in an effort to stimulate private investment and economic growth in low-income neighborhoods and rural communities that lack access to capital. Historically, low-income communities often have difficulty attracting investment. The NMTC Program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies. Private capital is incentivized by providing federal income tax credits to investors in exchange for making equity investments in low-income neighborhoods.
Since 2016, a New York City Regional Center-managed entity has received five separate NMTC awards from the U.S. Department of Treasury totaling $210 million. These allocations have provided a unique opportunity for the New York City Regional Center to continue its mission of providing financing that creates jobs and stimulates community revitalization in underserved areas of New York City. Previous NMTC capital has gone towards development projects that typically face financing challenges, such as health care centers, schools, and community facilities. These allocations are among the first managed by an EB-5 regional center.
About the New York City Regional Center
The New York City Regional Center ("NYCRC") was approved by the United States Citizenship and Immigration Services in 2008 to secure foreign investment for real estate and infrastructure projects under the EB-5 Immigrant Investor Program. Congress created the EB-5 program to stimulate economic development through foreign investment. The program's mandate is to use foreign investment to spur job creation while simultaneously affording eligible foreign investors the opportunity to become lawful permanent residents of the United States. The NYCRC was the first EB-5 regional center approved in New York City.
Over the past 15 years, the NYCRC has put over $1.5 billion of EB-5 capital to work across a broad spectrum of infrastructure and real estate projects in New York City. Much of this capital has been invested in underserved areas in need of long-term economic growth. Examples include:
- $811 million to finance ground-up, redevelopment, and infrastructure projects in Brooklyn, including eight projects totaling $383 million in the Brooklyn Navy Yard;
- $108.5 million to finance ground-up and redevelopment projects in Washington Heights (an Upper Manhattan Empowerment Zone);
- $232.5 million to finance the construction of a public high-speed wireless infrastructure network in New York City subway stations and along city streets; and,
- $220 million to finance ground-up construction in the Bronx.
Twenty-two projects have utilized NYCRC EB-5 financing to assist in the construction of over 3.8 million square feet of new development and renovation as well as infrastructure upgrades.
In addition to fueling economic development, NYCRC offerings have enabled over 5,300 individuals to become permanent residents of the United States through the EB-5 Immigrant Investor Program.
About the New Markets Tax Credit Program
Established by Congress in 2000, the NMTC Program assists economically distressed communities attract private investment capital. This federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. Communities benefit from the jobs associated with investments in manufacturing, retail, and technology. Communities also benefit from greater access to housing and public facilities in health, education, and childcare.
Through the NMTC Program, the U.S. Department of Treasury allocates tax credit authority to Community Development Entities ("CDEs") through a competitive application process. CDEs are financial intermediaries through which investment capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. With these capital investments, CDEs can make loans and investments to businesses operating in distressed areas that have better rates, terms, and flexibility than the market.
Since 2001, the NMTC Program has generated $60.4 billion in investments in low-income communities and businesses, resulting in the construction of 77 million square feet of manufacturing space, 118 million square feet of office space, and 77 million square feet of retail space.
NYCR-CDE, LLC is an Equal Opportunity Provider.
SOURCE NYCRC
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