Feds could help stimulate business in poor parts of San Francisco 

Tens of millions of dollars could be injected into businesses and construction and other projects in low-income parts of San Francisco if a proposal to take advantage of a federal program is approved.

The San Francisco Redevelopment Agency, a state agency, is preparing to apply to participate in a federal program which provides investors with tax breaks if they pump capital into low-income communities.

The U.S. Community Development Financial Institutions Fund has helped stimulate billions of dollars worth of investments in business projects in economically distressed neighborhoods under the New Markets Tax Credit Program.

San Francisco’s redevelopment agency plans to apply for the maximum amount of tax credits available under the program in the hope of securing $22 million worth of equity to promote economic activity in poor parts of The City, agency commissioners will hear during a meeting on Tuesday.

The application is expected to be filed in April by consultants working for a new city-run nonprofit founded by the agency to help administer the program. The nonprofit is expected to file similar applications in future years.

“The [new nonprofit San Francisco Community Investment Fund] will act as a bridge between the capital markets and low-income communities by taking the investment capital it receives and lending it to qualified projects,” Agency Deputy Executive Director Stephen Maduli-Williams wrote in a memo to commissioners.

“The Agency is keenly interested in finding new funding sources to accelerate the implementation of its Southeast redevelopment plans, particularly for the Bayview, Hunters Point Shipyard and Visitation Valley project areas,” he wrote.

 

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A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
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