Phoenix Community Development & Investment Corp. recently received a $45 million from a U.S. Department of Treasury fund aimed at boosting private investment in economically distressed areas.
The award came as a New Markets Tax Credit allocation from the Treasury’s Community Development Financial Institutions Fund.
It is the third consecutive year the Phoenix organization has received the funding. In 2021, it received $55 million to go along with a previous allocation of $35 million.
The funding is aimed to fill financing gaps and help to lure invesors into making larger investments in certain areas.
“This funding allocation will be a tremendous asset to economically disadvantaged areas across Phoenix and the county,” said Phoenix Mayor Kate Gallego. “For every $1 invested by the federal government, the New Markets Tax Credit program generates over $8 of private investment.”
PCDIC is one of 107 Community Development Entities to receive funding for the 2021 calendar year allocation application. Qualified areas for the federal program are based on census tracts where the individual poverty rate is at least 20%, or where median family income does not exceed 80% of the area’s median income.
PCDIC intends to focus its funding on the development of community facilities within Maricopa County that will bridge the skills gap for the county’s workforce, increase access to education and healthcare, and provide relief for the homeless.
“Over the past three years, we’ve been awarded a total of $135 million that goes back into our local community in areas that need it the most and will greatly benefit our community,” said Ginger Spencer, deputy city manager for the city of Phoenix and chair of the PCDIC Board of Directors.
The development corporation was formed in 2002 as a nonprofit to take advantage of funding for projects. The organization is managed by the Phoenix Industrial Development Authority.
U.S. Department of the Treasury