Will Assist Attracting Investors to Low Income Distressed Communities
The United States Department of the Treasury Community Development Financial Institutions Fund announced June 13 that it has awarded Harbor Bankshares Corp., parent of The Harbor Bank of Maryland, a total of $33 million in New Market Tax Credits.
The tax credits will allow Harbor Bank to offer loans with incentives that attract investors to low-income and distressed communities, the bank said in a statement.
“The New Markets Tax Credit Program creates jobs and critical investments in low-income neighborhoods and rural communities across the nation,” Amias Gerety, acting assistant secretary for financial institutions, said in the statement. “Often the New Markets Tax Credit is the most critical piece of the puzzle when trying to finance important economic development projects across the country. It’s ability to attract private-sector capital into some of the most economically distressed and underserved communities is a hallmark of this important economic development program.”
Harbor Bank was founded in 1982 as a vehicle to provide commercial banking products to the largely unbanked urban community in Greater Baltimore. Community dedication helped Harbor win coveted New Market Tax Credits previously, awards which are now engaged in several major developments.
Harbor provided $25.5 million of its New Market Tax Credit allocation to the Life Sciences and Technology Park in East Baltimore, the $1.8 billion project revitalizing 88 acres near Johns Hopkins Hospital. The investment allows developer Forest City Enterprises and East Baltimore Development, Inc. to provide community services such as housing relocation, workforce development, and family support to those impacted by the redevelopment.
On the West side of Baltimore, Harbor provided $14.5 million in New Market Tax Credit funding for the $77 million University of Maryland, Baltimore Biotech building. This investment allows developer Wexford Science and Technology to create economic benefits including new jobs while offering reduced cost space to small businesses in the deprived surrounding area.