Dykema Client Receives CDE Certification For NMTC

Bloomfield Hills

The Community Development Financial Institutions (CDFI) announced that it has awarded Dykema client, Invest Detroit, with an allocation of New Markets Tax Credits. The CDFI Fund was created in 1994 by the U.S. Treasury for the purpose of promoting economic revitalization and community development. The CDFI provides an allocation of tax credits to community development entities (CDEs) which enable them to attract investment from the private-sector and reinvest these amounts in low-income communities. Invest Detroit, an affiliate of the Detroit Investment Fund, will use the allocation of NMTC for economic development projects in Detroit.

Dykema attorney Anthony Ilardi was instrumental in assisting Invest Detroit with their CDE (Community Development Entity) application, which was a requirement in order to receive the NMTC allocation. To become certified as a CDE, an organization must submit a CDE Certification Application to the Fund for review. The application must demonstrate that the applicant meets each of the following requirements to become certified:

• Be a legal entity at the time of application;
• Have a primary mission of serving LICs; and
• Maintain accountability to the residents of is targeted LICs

In 2009 there have been 249 NMTC applications received by the CDFI fund requesting $22.5 billion. A total of $5 billion of allocation authority is available this round including the $1.5 billion in additional allocation authority authorized through the American Recovery and Reinvestment Act of 2009 (the Recovery Act).

"The Detroit Investment Fund is extremely pleased that its Invest Detroit CDE has been selected to receive a New Markets Tax Credit allocation of $40 Million," said Dave Blaszkiewicz, president, Detroit Investment Fund. "Anthony Ilardi guided us through the CDE requirement and application process and provided ongoing support that helped to make our NMTC application a success.We greatly appreciate his assistance and expertise and look forward to working with Tony, Joel Kellman and their team at Dykema to implement Invest Detroit CDE’s strategy and to achieve its goals."