The New York City Regional Center (“NYCRC”) announced the closing of $15 million in New Markets Tax Credit financing for the construction of the Nuasin Next Generation Charter School in the Bronx.
This is the twelfth public charter school in the city that has utilized funding from a NYCRC-managed entity and the ninth in the Bronx.
Nuasin Next Generation Charter School is one of the city’s growing charter school networks. The funding is helping finance construction of a six-story, K-12 public charter school in the Van Nest neighborhood of the Bronx that will be home to approximately 700 students. The new 59,000 square foot building will allow Nuasin to expand and meet the demand of the surrounding community. During its initial phase, the new school will utilize the upper four floors with the first two floors remaining temporarily unaccompanied until enrollment increases. Each year, Nuasin will add additional grades until capacity is met for grades K-12. Nuasin serves a predominately low-income student population with approximately 97% of students identified as economically disadvantaged.
The $15 million transaction utilized a portion of a $75 million New Markets Tax Credit award from the U.S. Department of Treasury to New York City Regional Community Development (“NYCR-CDE”), a community development entity managed by NYCRC. To receive a New Markets Tax Credit allocation award, NYCR-CDE was required to demonstrate a mission and track record of providing investment capital for low-income communities.
Since 2016, NYCR-CDE has received eight separate annual tax credit awards totaling $390 million. Examples of previous fundings include:
- Construction of the National Urban League’s new headquarters in Harlem
- Redevelopment of the Major Owens Community Center in Brooklyn
- Redevelopment of the Armory Track & Field Center in Washington Heights
- Expansion of St. John’s Episcopal Hospital Center in Far Rockaway
- Construction of seven Grand Street Settlement early childhood centers in Brooklyn and the Bronx
- Construction of four Community Healthcare Network clinics in Queens, Manhattan and the Bronx
The New Market Tax Credit Program was created by Congress in 2000 in an effort to stimulate private investment and economic growth in low-income neighborhoods and rural communities that lack access to capital. Historically, low-income communities often have difficulty attracting investment. The program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies. Private capital is incentivized by providing federal income tax credits to investors in exchange for making equity investments in low-income neighborhoods.
