PITTSBURGH, PA (June 6, 2014) Mayor William Peduto announced today that Pittsburgh Urban Initiatives (PUI), a Community Development Entity (CDE), affiliated with the Urban Redevelopment Authority of Pittsburgh (URA) has been awarded $28 million in New Markets Tax Credits (NMTC) by the U.S. Treasury Department.
The NMTC program aims to aid in economic development, community revitalization and job creation by spurring private investment in low-income communities. The NMTC announcement builds on the Obama Administration’s commitment to increase economic opportunity in distressed areas of the United States.
The PUI is one of 87 entities to receive the competitive funding out of 310 applicants.
“This funding is critical to city efforts to give struggling communities ladders of opportunity to join in development success with their neighbors around Pittsburgh,” Mayor Peduto said. “Thank you to partners including Senator Casey, Senator Toomey and Congressman Doyle for assisting Pittsburgh’s efforts once again.”
Since February 2011, PUI has received $118 million in NMTC allocation. Those tax credits have helped to finance several Pittsburgh developments, including 201 Stanwix Street complex, East End Cooperative Ministry’s Community House, the Oak Hill office and retail space, the Energy Innovation Center, the Hill District Grocery Store and The Gardens at Market Square and Ace Hotel.
The URA is currently working on closing three NMTC deals - Eastside III transit-oriented development, the Oliver Building and Wood Street Commons. More than 2,000 permanent jobs, 1,500 construction jobs and $230 million in total project costs have been created through PUI projects funded with NMTC.
Pittsburgh Urban Initiatives LLC (PUI), a URA-sponsored CDE that invests in low-income communities as part of the NMTC program, applied for the latest funding in September 2013. The PUI Governing board and Advisory board, consisting of the URA executive director and staff, foundations, and community development professionals representative of low-income communities throughout the City, govern PUI’s NMTC funding. To learn more about how to qualify for NMTC funding, please visit http://ura.org/business_owners/pui.php.
“We knew that PUI had submitted its best application yet and this generous award is further validation that our economic development strategy is effective and highly regarded nationally,” said Robert Rubinstein, URA acting executive director. “We were able to achieve such a significant award in this round based upon three factors: our ability to deploy prior awards in impactful community developments; a skilled NMTC team with great partners; and a very robust pipeline of deserving projects."
“New Market Tax Credits have proven to be an effective tool for local governments to bring jobs and economic growth to struggling communities,” Congressman Doyle said. “Throughout my service in Congress, I have been a strong supporter of federal efforts to help redevelop economically distressed communities, including the New Market Tax Credit. The Credits announced today will enable the URA to leverage substantial private sector investment in redevelopment efforts in the City of Pittsburgh.”
Pittsburgh Urban Initiatives (PUI) is an LLC sponsored by the Urban Redevelopment Authority (URA) of Pittsburgh. PUI’s mission is to strategically invest in office, retail, mixed-use, and community facility developments designed to rehabilitate abandoned and blighted sites in the City of Pittsburgh. With continued success raising NMTC allocation available to Pittsburgh, PUI has helped drive increased investment activity in Pittsburgh’s neighborhoods to close deals that “but for” the NMTC would not be possible.
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC program provides tax credits to investors who make “qualified equity investments” in investment vehicles called Community Development Entities (CDEs) who are required to invest in low-income communities. Pittsburgh Urban Initiatives LLC (PUI) is a URA-sponsored CDE, which is governed by a board consisting of the URA executive director and staff, foundations and community development professionals that represent low-income communities throughout the City. The board vets projects as they are presented. In addition, the URA has a loan underwriting team with outside NMTC expertise as well as local experience.
ABOUT THE URA:
The Urban Redevelopment Authority of Pittsburgh (URA) is the City of Pittsburgh’s economic development agency, committed to creating jobs, expanding the City’s tax base and improving the vitality of businesses and neighborhoods. The URA achieves this mission by assembling, preparing and conveying sites for major mixed-use developments; and by providing a portfolio of programs that include financing for business location, relocation and expansion, housing construction and rehabilitation, and home purchases and improvements.