The Midwest's Top Rated CDFI, Nonprofit Lender IFF, Receives $25 Million in New Markets Tax Credit Allocation

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Feb 24, 2012, 06:06 ET

Achieves Organizational Milestone of Over $1 Billion Leveraged in Community Investment Since 1988

CHICAGO, Feb. 24, 2012 /PRNewswire-USNewswire/ -- On February 23, the U.S. Treasury Department's Community Development Financial Institution (CDFI) Fund announced that nonprofit lender, IFF, has been awarded $25 Million in New Market Tax Credit (NMTC) allocations. The NMTC program works to stimulate equity investment from the private sector in low-income communities by providing a 35% tax credit to investors over a period of 7 years. The allocation was part of $3.6 billion in NMTC awarded to 70 Community Development Entities nationwide. IFF was previously awarded $10 million in NMTC allocation in 2002.

"We are thrilled to be chosen to participate in the New Market's Tax Credit program this year," said Joe Neri, CEO of IFF. "The New Market's program is an absolutely vital tool for channeling investment from private sector into low-income communities."

The $25 million in NMTC will allow IFF to leverage an additional $35 million over and above the value of the credits, yielding approximately $60 million in investment to nonprofits serving low-income communities in Illinois, Wisconsin, Missouri, and Indiana. The tax credit award will also allow IFF to offer larger loans with increased flexibility of terms. Projects prioritized for tax credit investment are charter schools, community health centers and healthy foods projects in low access food areas and USDA food desserts. To date IFF has closed 24 NMTC loans.

IFF is also celebrating significant achievement this year as it surpassed the $1 billion mark in community investment leveraged by its loans to nonprofits since being founded in 1988. This important milestone highlights 23 years of facilities and equipment investment in low income and special needs communities across Illinois, Wisconsin, Missouri, Indiana and Iowa—representing nearly one thousand loans totaling over $248 million for nonprofit programs and services.

"IFF is extremely proud of reaching this milestone," said Joe Neri, CEO of IFF. "The $1 billion leveraged mark represents exactly what makes CDFIs such powerful instruments of community development —the ability to effectively leverage public-private investments and recycle them into the communities that need them most."

Founded in 1988 with a $1.7 million grant from the Chicago Community Trust and certified by the U.S. Treasury as a Community Development Finance Institution (CDFI) in 1996, IFF's lending has leveraged over $1 billion into child care and primary health care centers, supportive housing, charter schools, shelters and affordable housing—creating over 4,615 child care slots, 22,145 student seats, 2,580 units of affordable housing, 171,155 health care visits and 46,501 jobs.

IFF's strong financial performance and wide reaching community impact has earned it the highest rating from the CDFI Assessment and Rating System (CARS), making it one of only four CDFIs nationwide – and the only in the Midwest – to earn CARS' highest rating of "1" for Financial Strength and Performance, "AAA" for Impact Performance and a "Policy Plus" for leadership in policy changes impacting disadvantaged people and communities. IFF will celebrate its 25th anniversary in 2014.

About IFF
IFF is a nonprofit lender and real estate consultant dedicated to strengthening nonprofits and the communities they serve. It helps nonprofits plan, finance, and build facilities that are critical to their mission and success. Founded in 1988, IFF has total assets of more than $235 million and serves nonprofits working with low-income communities and special needs populations in Illinois, Indiana, Iowa, Missouri, and Wisconsin. To learn more about IFF, visit www.iff.org.

SOURCE IFF