N.Y. Starts New Financing Entity for Nonprofits
June 20, 2011 | Read Time: 1 minute
New York Mayor Michael R. Bloomberg unveiled plans last week for a new financing mechanism to help city charities jumpstart expansion and modernization plans, Crain’s New York Business reports.
A new local development corporation set to launch in four to six months will offer low-cost, tax-exempt financing for nonprofit groups’ capital projects, filling a gap left three years ago when the New York City Industrial Development Agency lost its authority to issue tax-exempt bonds on behalf of charities. That forced many organizations to seek out-of-state financing.
The Bloomberg administration estimates that New York charities have at least 20 capital projects collectively worth more than $400-million that are shovel-ready but stalled due to financing issues.
