The Los Angeles Development Fund provides investment capital for low-income communities to promote economic growth. By generating private investment capital through New Markets Tax Credits, the LADF is able to fund development projects in low-income areas, helping these communities out of their economic distress. Investment in depressed areas promotes business development, local commerce, and creates jobs.
There are three parts to the LADF application process:
Step 1 - Is Your Project Eligible?
The New Markets Tax Credit Program is a federal tax credit that incentivizes business and real estate developers to invest in lower-income areas. A major part of the application determines whether the area served by the development is low-income, or under-served in certain specific ways.
Basic eligibility for NMTC requires a development to be in a census tract with income at or lower than 80% area median income, or poverty to be greater than 20%. LADF requires that their NMTC allocation must be invested in projects located within the limits of the City of Los Angeles AND in census tracts that meet the CDFI Fund’s distressed community criteria.
Basic eligibility for NMTC requires a development to be in a census tract with income at or lower than 80% area median income, or poverty to be greater than 20%. LADF requires that their NMTC allocation must be invested in projects located within the limits of the City of Los Angeles AND in census tracts that meet the CDFI Fund’s distressed community criteria.
Before applying:
- check that your project zip code is within the City of Los Angeles using geohub.lacity.org, enter the address using the search function on the map
- use the New Markets Tax Credit Eligibility Status Policy Map to see if your project is in an eligible census tract
Step 2 - Is an LADF Investment Feasible?
Selection criteria includes your development team capacity, targeted project type, size of the needed allocation, project feasibility and readiness and the impact on the community.
