New Markets Tax Credits

McCormack Baron Salazar's MBS Urban Initiatives CDE ("UI") is an allocatee of the Treasury’s CDFI fund’s New Markets Tax Credit (NMTC) program. MBS has learned that targeted investments in specific areas of commercial and community need, identified through community engagement and/or evidenced-based research, can significantly aid in changing the economic trajectory of a community. UI deploys New Markets Tax Credit (NMTC) allocation in highly-distressed, urban communities to positively change outcomes and create opportunities for sustainable economic growth.

  • Investment Strategy: We make NMTC investments in projects and businesses that demonstrate the following impacts: increase economic activity by creating quality, accessible jobs and training; improve educational opportunities with a focus on early childhood and K-8 to impact children earlier in their development; bring affordable, accessible fresh food into communities that lack access; and increase the capacity of non-profit service providers through improved facilities, expanded services, and delivering an expectation of a “market-rate product." Through all our strategies, UI emphasizes finding new approaches to solving ingrained systemic problems by investing in innovative (and therefore, riskier) solutions.
  • Investment Priorities: UI prioritizes the following criteria for investment opportunities:
    • Holistic Development: The impacts of the above-outlined investment strategies are magnified when paired with separately-financed affordable and mixed-income housing investments. Transactions that are part of a larger affordable housing master plan or holistic community redevelopment effort are prioritized. However, we do not finance housing developments.
    • Community Engagement: Projects that grow out of or are supported by local residents and meet an identified community need.
    • MBS Partner Cities (see map below): UI aims to provide capital where we have established community relationships that can confirm the need, demand, and transformational potential of an investment.
    • Sustainability: Equity extends to environmental resiliency. UI prefers projects that address environmental inequities through sustainable design and works with potential borrowers to help them understand the importance of green design.
    • Distressed Urban Areas: UI invests in the urban core of cities in areas that meet the qualification for highly distressed.
    • Underserved States: A portion of all UI’s allocations are set aside for underserved states.

A map showing MBS Urban Initiative's targeted cities, which include San Francisco, Sacramento, East Bay, Los Angeles, Phoenix, Kansas City, Minneapolis, St. Louis, East St. Louis, Fort Worth, Dallas, San Antonio, Houston, Galveston, New Orleans, Fort Myers, Miami, Homestead, Puerto Rico, Atlanta, Memphis, Durham, Winston-Salem, Louisville, Baltimore, Washington D.C., Pittsburgh, Cleveland, Columbus, Gary

  • Products:  Our highly-experienced and accomplished team uses our NMTC allocations to provide below-market debt financing with flexible terms to real estate developments and businesses that can demonstrate significant impact, both in their own right and as catalysts for others to follow.
  • Track Record: Our work speaks for itself. Our track record of 70 NMTC transactions illustrates the impact our investments have made on communities across the country.
NMTC Awards
First Award
$525 Million
Total Allocation
$477.5 Million
Total Funded
NMTC Transactions
Third Party Allocations
$2 Billion
Financial Impact
Allocation City Locations


In accordance with federal law and the U.S. Department of the Treasury policy, MBS Urban Initiatives CDE, LLC is prohibited from discriminating on the basis of race, color, national origin, sex, age or disability.  To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington D.C., 20220 or call (202) 622-1160.