Many local community-based organizations are unfamiliar with the significant impact that New Markets Tax Credit (NMTC) investments have on revitalizing the face of local distressed communities. This session of the Asset Building Coalition of Greater Los Angeles is designed to help practitioners and the financial institutions who invest in L.A. communities to better understand what the tax credit program is and what it can do to benefit the lives of low-income residents.

The Local Initiatives Support Corporation (LISC) has long been a leader in innovative financing strategies to improve the condition of neighborhoods suffering from financial disinvestment. NMTC is but one example. A pioneer in the creation and use of this new federal program, LISC has focused its efforts on financing the development of commercial and community space and housing to generate jobs, provide needed goods and services, and reverse physical deterioration in struggling communities.

LISC also focuses on transactions that lead to revitalization beyond the particular project being financed, such as shopping centers, which can stimulate the redevelopment of commercial strips. Another strategic approach has involved financing several arts-related projects that represent components of broader efforts to transform neighborhoods. Similarly, LISC has financed significant amounts of incubator space for local entrepreneurs. In addition to commercial space, LISC provides NMTC financing for charter schools, day care centers, and other community facilities.