The St. Louis Development Corp. has been awarded $80 million — the largest allocation in its history — from a federal program that gives tax credits to investors who help fund projects in low-income neighborhoods.
The funding is offered through the U.S. Treasury Department’s New Markets Tax Credit Program, which offers tax breaks to private investors in exchange for helping finance projects in distressed communities, often helping close funding gaps for developments that struggle to attract traditional financing.
“We are thankful for this award since there will be numerous programs and projects that we will be able to support now,” said Otis Williams, SLDC’s interim president and CEO.
Congress created the New Markets Tax Credit Program in 2000. The credit covers 39% of an investor’s total investment and is paid out over seven years.
St. Louis Development Corp. applies each year for these credits. Over time, the agency has received $648 million and says it has “financed at least 117 real estate projects and created at least 7,350 jobs.” Past projects include Delmar Stage and Studios, Stock Legal and ArchCity Defenders.
Agency officials said the newest allocation will help support local developments including renovation in the Cortex innovation district and a new residential facility for Doorways, a nonprofit that serves people living with HIV.
Some St. Louis Development Corp. beneficiaries since 2022 include:
- Tabernacle Community Development Corp.’s Hebert Homes Project — for 26 affordable for-sale housing units.
- Habitat for Humanity — $7 million to support affordable housing production.
- Ronald McDonald House — up to $6 million to build a new 72-room facility.
- St. Louis Symphony Orchestra — up to $7 million for its new Education & Learning Center.
- Urban League of Metropolitan St. Louis — $10 million for redevelopment and expansion of its North Kingshighway headquarters.
- Doorways — $8 million to help fund housing services for people living with HIV/AIDS on Jefferson Avenue in the JeffVanderLou neighborhood.
SLDC spokesman Deion Broxton said $4 million from a previous allocation was approved for Module Building Systems to build homes in the Greater Ville area. Future proposals from the tornado zone are also welcome because it is “comprised of highly distressed tracts that qualify,” Broxton said.
Sylvester Brown Jr. is the Deaconess Foundation Community Advocacy Fellow.