$10 million in tax credits awarded on $50 million of investments in underserved communities through final COIN CDFI Tax Credit Program
News: 2016 Press Release
SACRAMENTO, Calif. — California Insurance Commissioner Dave Jones today announced $10 million in tax credits awarded to 15 insurance companies and other investors that made more than $50 million in capital investments into California’s underserved communities through the 2016 California Organized Investment Network (COIN) Community Development Financial Institution (CDFI) tax credit cycle, which marks the end of the tax credit program with the expiration of its authorization. Legislation to extend the tax credit program (AB 2128 by Speaker Emeritus Toni Atkins) was vetoed. The Department, the insurance industry and stakeholders are discussing options for 2017 reauthorization.
“While the COIN CDFI tax credit program has enjoyed significant success in attracting needed investments into California’s underserved communities, this marks the final tax credit cycle with the lack of a reauthorization,” said Commissioner Jones. “This one-of-a-kind program has blazed an extraordinary path over the past two decades in creating innovative public-private partnerships between communities and the insurance marketplace.”
This year, CDFIs submitted 116 applications to COIN requesting tax credits of $36.7 million on $183.3 million of investment supporting the creation of more than 7,000 jobs. Demand exceeded the $10 million in available tax credits, which supported $50 million or more in capital from insurance companies and other investors for community development.
Additionally, the annual Community Investment Survey Data Call, which provided a transparency mechanism enabling the public to see how insurers were investing in communities and projects serving them will also cease.
Over the past 20 years, the COIN CDFI tax credit program provided tax credits to investors and helped CDFIs raise funds for projects creating social and environmental benefits to low-to-moderate income households or areas, as well as rural communities in California.
Since the inception of the COIN CDFI tax credit program in 1997, more than $335 million has been invested in COIN Certified CDFIs throughout California.
For this award cycle, a total of 15 insurers and four banks made investments in 11 CDFIs supporting a wide range of programs. The 15 insurance companies were awarded a total of $8.45 million in tax credits supporting $42.3 million in investments representing 85 percent of the total award allocation.
Highlights of tax credit allocations awarded to:
- CSAA Insurance Group for a $2.5 million investment in the Northern California Community Loan Fund (NNCLF) and a $2.5 million investment in Clearinghouse CDFI. NCCLF partnered with Livingston Community Health to acquire land to build a consolidated one-step health and wellness center providing an additional 4,000 people primary and wellness care and creating 110 jobs in high unemployment areas. Clearinghouse CDFI will provide low cost loans for an anticipated aggregate benefit of $47 million for low to moderate income areas and 300 jobs;
- Multiple insurer investors including: American Bankers Insurance Company, American Security Insurance Company, Mutual of Omaha Insurance Company, United of Omaha Life Insurance, CSAA Insurance Group and MetLife for a $2.8 million investment in Enterprise Community Investment, Inc. for multiple affordable housing developments across California that will provide housing opportunities and create 879 jobs;
- Nationwide Life Insurance and Nationwide Mutual Insurance Companies for a $2.7 million investment in WNC & Associates Inc. that will fund 101 affordable apartments in Garden Grove and Davis and create 200 jobs;
- Rabobank for its investment of $1.5 million in California FarmLink to provide loans to farmers who are first time borrowers or have limited access to capital. This investment will create 129 jobs; and
- Tri Counties Bank for its investment of $1 million to NeighborWorks HomeOwnership Center Sacramento Region to support affordable home ownership in 11 Northern California counties, produce 150 homes with Rural Self Help Housing through the USDA 502 program, and create 1,092 jobs.
- Established in 1996, COIN is a collaborative effort between the California Department of Insurance, insurance industry, community affordable housing and economic development organizations, and community advocates to support investments benefitting California's environment and low-to-moderate (LMI) income and rural communities. For more information, visit www.insurance.ca.gov/0250-insurers/0700-coin
- List of the 2016 CDR Tax Credit Awardees.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.