Revitalizing communities through new markets tax credits
Capital One invests in community development projects in economically distressed communities through this federal initiative.
May 26, 2023
Capital One participates in the New Markets Tax Credit (NMTC) program — a federal initiative that provides incentives for private investment and development in economically distressed communities through federal tax credits.
The company’s efforts come to life as a lender, investor and as an allocatee through its community development entity (CDE), Capital One Community Renewal Fund (COCRF).
In 2022, Capital One financed 27 NMTC projects and invested nearly $439 million of capital in projects that increased access to food and shelter, provided more equitable health and education facilities and created quality jobs.
Since establishing its CDE in 2005, Capital One has helped shape the impact of the federal NMTC program through supporting organizations such as the Historic District Development Corporation (HDDC).
Founded by Coretta Scott King, her sister-in-law Christine King Farris and civil rights advocate John Cox in 1980, HDDC pioneered the “block- by-block” redevelopment strategy in the 1990s by building new properties adjacent to where they were rehabilitating existing structures to avoid displacing residents.
In 2022, COCRF provided $3 million in federal allocation towards a $30.5 million New Markets Tax Credit transaction towards the development of The Front Porch – a 100,000 square foot development of a mixed-use space in Atlanta.
“The Sweet Auburn neighborhood historically had been a beacon of activity and inspiration in Atlanta, where African American entertainers, civic leaders and businesspeople once established their careers, found success and advocated for equity," says Chenee Joseph, President and CEO of HDCC. "With this new investment, we are hopeful that it will once again be restored to its original status as a bustling hub for the next generation to build wealth, live, work and enjoy arts and entertainment.”
As HDDC moves into commercial development, it will focus on sustaining local businesses integral to the historic culture of the area, providing technical assistance for entrepreneurs and the incorporation of sustainability, urban agriculture and community wealth building initiatives. Additionally, it will include 31 units of affordable rental housing, as well as 16 for-sale condominium units to encourage asset building.
The development will serve as the signature early stage project in what will be known as the SAGE (Sweet Auburn Green and Equitable) District, located in a severely distressed census tract with a poverty rate of nearly 33 percent and a median-family income at 29 percent of the national average.
Read more about our community impact in the 2022 ESG report.