Ymca SF NMTC

Ymca sf nmtc, inc. Under the nmtc program, taxpayers receive a 39% tax credit on qeis that are made in a cde. In revenue ruling 2003-20, the internal revenue service ruled that a taxpayer is permitted to borrow money to make an investment in a cde. Ymca sf nmtc, inc. was formed for the purpose of serving as the leverage lender for both the bayview project and the chinatown project. In connection with the bayview project, ymca sf nmtc, inc. Loaned $3,498,500 to bayview fund. These loan proceeds were combined with $1,151,500 contributed to bayview fund by an equity investor and permitted bayview fund to make an aggregate qei in bayview cde) of $4,650,000. With respect to the chinatown project, ymca sf nmtc, inc. Agreed to loan $11,903,500 to chinatown fund. These loan proceeds were combined with equity investment in the chinatown fund of $5,596, 500 to permit chinatown fund to make a qei in chinatown cde in the amount of $17,500,000.