Feds provide $45 million for economic development projects

Staff report

WASHINGTON

The federal government is providing $45 million to 18 counties in Northeast Ohio – including Mahoning, Trumbull and Columbiana counties – for economic- development projects.

U.S. Rep. Tim Ryan of Howland, D-13th, announced the allocation Monday to the Development Fund of Western Reserve.

The initial focus of the funding will go toward projects in Youngstown, Warren and Akron, according to Ryan’s office.

“This funding will be instrumental in forming strong public-private partnerships that will spur economic development and growth in underserved, low-income urban and rural communities throughout Northeast Ohio,” Ryan said. “These business and real-estate investments will bring jobs and opportunities to our communities most in need.”

The Development Fund provides subsidies to a variety of projects, including health care, housing, industrial, commercial retail, office buildings, hospitality and community facilities.

The fund seeks projects that have significant economic and community impacts, will have efficient turnaround of taxpayer dollars, put funding to work as quickly as possible and reduce energy costs, according to its website.

This award is funded through the U.S. Department of Treasury’s New Markets Tax Credit Program, established by Congress in 2000 to spur new or increased investments into operating businesses and real-estate projects in low-income communities.

The program attracts investment capital to low- income communities by permitting individual and corporate investors to receive a tax credit against their federal income-tax return in exchange for making equity investments in specific projects, according to Ryan’s office.