A new local development corporation for New York City nonprofits is starting to accept applications for tax-exempt capital financing. Build NYC Resource Corp. is part of the New York City Economic Development Corp. It held its first organizational meeting Tuesday.
A portion of New York law allowing industrial development agencies to financially assist nonprofits expired in early 2008. Since then, at least 16 city nonprofits have sought assistance from out-of-state or out-of-city bond issuers to finance or refinance projects totaling more than $489 million, the EDC said.
There are now an estimated 20 nonprofit capital projects in the pipeline, which since 2008 have been unable to identify a source for access to tax-exempt financing, according to the corporation.
Build NYC financing is subject to approval by the board of directors, which is appointed by the mayor’s office, all five borough presidents, and the comptroller.
The inability of New York City government to assist nonprofits seeking to sell tax-exempt bonds has sometimes needlessly raised the nonprofits’ costs, the agency said. It has also sometimes forced them to forgo projects that would have created jobs or offered educational, health or artistic resources to New Yorkers. About 470,000 people are employed at more than 42,000 health, human services and cultural nonprofits in the city.
Build NYC can be contacted at 212- 312-3600 or email@example.com.