NOTE: UDF is an affiliate of Aries Capital, LLC.
Established in 2001 and qualified as a Community Development Entity (CDE) by the US Treasury, UDF has been awarded $392.5 million in Federal and State New Markets Tax Credits and has syndicated over $500 million in New Markets Tax Credits and Historic Tax Credits. Projects include the rehabilitation of historic hotels in New Orleans and Louisville, regional malls in Minneapolis and Dallas, the redevelopment of a retail center in San Diego and the new construction of a medical office building in Chicago.
On December 21, 2000, the Community Renewal Tax Relief Act of 2000 was signed into law. This landmark legislation included the New Markets Tax Credit, which will spur the investment of $15 billion in new private capital into a range of privately managed investment vehicles that make loans and equity investments in New Markets businesses. By making an equity investment in an eligible “community development entity” (CDE), individual and corporate investors can receive a New Markets Tax Credit worth 39 percent of the amount invested over the life of the credit. By increasing their capital base, this tax credit enables CDEs to lend and invest more, to attract additional outside capital, and to bring even more private sector engagement to their market-priming activities.
UDF was formed in 2002 with the primary mission of serving low-income persons and low-income communities by utilizing the New Markets Tax Credit to spur private investment in underserved neighborhoods around the country. In that same year, UDF was certified as a Community Development Entity by the CDFI Fund, a department of the U. S. Treasury Department.
To date, UDF has received seven allocations of federal New Markets Tax Credits totaling $337.5 million. UDF most recently received a $45 million allocation as part of the 2011 round of allocation authority. Additionally, UDF has received allocations of Illinois State NMTC totaling $25 million and Florida State NMTC totaling $30 million.
UDF utilizes the subsidy afforded by the New Market Tax Credit to offer more favorable rates and terms than would have been available to these projects in the marketplace. All of the UDF’s loans are flexible or non-traditional in some form including: below market interest rates, non-traditional forms of collateral, longer than typical amortization periods, or more flexible borrower credit standards.
Email Michael | 847.748.8331 (W)