In what is being described as an innovative use of the New Markets Tax Credit Program, theUrban League of Greater Madison has announced the launch of a new, $5 million initiative to increase homeownership among Black Madisonians.
The Urban League is already in the process of purchasing between 15 and 17 homes in economically distressed census tracts and plans to perform extensive renovation work on these homes over the next 12 months. The renovated homes will be resold to low- and moderate-income families seeking to become first-time homeowners, and the Urban League will offer a no-down payment, interest-only program with a saving and wealth building component, plus other favorable terms and benefits. Those benefits include ongoing homeownership readiness training and individual financial-empowerment counseling.
The project will utilize the federal New Markets Tax Credit Program as the financing mechanism. The tax credits are being allocated by National Community Investment Fund (NCIF), a community development financial institution (CDFI) headquartered in Chicago but investing in low- and moderate-income communities all across the country.
