Form 990 for tax year 2022

Totals

Total revenue

$13,208,840

Total expenses

$11,761,090

Contributions and grants received

$600,000

Grants paid

$5,517,803

Program service revenue

$12,602,470

Investment income

$10,903

Other revenue

-$4,533

Total assets, end of year

$30,272,835

Total liabilities, end of year

$13,466,760

Net assets or fund balances, end of year

$16,806,075

Program services expenses (Part IX)

$10,294,200

Management and general expenses

$1,466,890

Fundraising expenses

$0

Program service expenses (Part III)

$10,294,200

Program services were 87.5% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Mission and programs · 2022

• LOW INCOME HOUSING:HEDC IS A NATIONAL LEADER IN LOW-INCOME HOUSING THROUGH BOTH DEVELOPMENT AND INVESTMENT. WORKING IN PARTNERSHIP WITH NONPROFIT ORGANIZATIONS AND SERVICE PROVIDERS AROUND THE NATION, HEDC HAS DEVELOPED, FINANCED, OPERATED, AND/OR MANAGED OVER 14,000 UNITS OF QUALITY, SAFE, ADEQUATE, AND AFFORDABLE LOW-INCOME HOUSING TOTALING MORE THAN $2.5 BILLION OF INVESTMENT IN LOW-INCOME COMMUNITIES IN MORE THAN 30 STATES.(CONT. SEE SCHEDULE O)

  Expenses $8,974,368 · Grants $4,855,335 · Revenue $11,007,618

• LESSENING THE BURDENS OF GOVERNMENT: HEDC ALSO PARTNERS WITH UNITS OF LOCAL GOVERNMENT TO ERECT AND MAINTAIN PUBLIC BUILDINGS, MONUMENTS, AND FACILITIES; AND TO PROMOTE SOCIAL WELFARE. THE UNDERLYING MISSION IS TO "LESSEN THE BURDEN OF GOVERNMENT". IN TOTAL, HEDC HAS DEVELOPED AND FINANCED MORE THAN THIRTY-ONE PROPERTIES AT A COST OF MORE THAN $2.5 BILLION ON BEHALF OF LOCAL GOVERNMENT. PROJECTS INCLUDE PUBLIC BUILDINGS AND CITY HALLS, EDUCATIONAL AND MEDICAL RESEARCH FACILITIES, STUDENT HOUSING, PARKING FACILITIES AND OTHER PUBLIC INFRASTRUCTURE. (CONT. SEE SCHEDULE O) DURING 2022, IN ADDITION TO PROVIDING PRE-DEVELOPMENT SERVICES TO SELECT CLIENTS HEDC BEGAN PRE-CONSTRUCTION WORK ON 1 PROJECT AS THE OWNER/DEVELOPER UNDER THE MISSION OF LESSENING THE BURDENS OF GOVERNMENT, AND ANOTHER WHERE IT WILL SERVE AS THE OWNER/DEVELOPER. THE FIRST IS A PARKING GARAGE FOR THE TOWN OF RIVERHEAD, NEW YORK AND IT IS EXPECTED TO CLOSING FINANCING AND BEGIN CONSTRUCTION IN 2024. THE SECOND PROJECT IS A MIXED USE MIXED IN THE CITY OF HARTFORD WHICH WILL PROVIDE SPACE FOR THE CITY'S DEPARTMENT OF HEALTH AS WELL AS SOME ADDITIONAL RETAIL USES. THE TRANSACTION WILL HAVE A FINAL CLOSING ON ALL FINANCING IN EARLY 2024.

  Expenses $814,802 · Grants $388,031 · Revenue $931,506

• STIMULATE ECONOMIC DEVELOPMENT IN ECONOMICALLY DEPRESSED AREAS: HEDC WORKS WITH NONPROFIT ORGANIZATIONS, SERVICE PROVIDERS AND UNITS OF LOCAL GOVERNMENT TO STIMULATE ECONOMIC DEVELOPMENT IN THE ECONOMICALLY DEPRESSED NEIGHBORHOODS ACROSS THE NATION. WORKING THROUGH THE NEW MARKETS TAX CREDIT PROGRAM ALONG WITH OTHER FINANCING TOOLS FOR SMALL BUSINESSES AND NONPROFITS, HEDC CREATES EMPLOYMENT AND ENTREPRENEURIAL OPPORTUNITIES FOR DISADVANTAGED GROUPS AND INDIVIDUALS, COMBATS COMMUNITY DETERIORATION, AND ELIMINATES SLUM AND BLIGHT THROUGH NEW INVESTMENT IN LOW INCOME COMMUNITIES TO REHABILITATE AND REVITALIZE NEIGHBORHOODS.(CONT. SEE SCHEDULE O) UNDER THE NEW MARKETS TAX CREDIT (NMTC) PROGRAM, HEDC HAS SPONSORED 102 PROJECTS THROUGH A $804 MILLION NMTC ALLOCATION, WHICH LEVERAGED PROJECT FINANCING TOTALING OVER $2.4 BILLION OF NEW INVESTMENT, CREATED/RETAINED OVER 17,000 PERMANENT JOBS AND OVER 10,000 CONSTRUCTION JOBS FOR DISADVANTAGED INDIVIDUALS, AND BROUGHT BADLY NEEDED GOODS AND SERVICES TO LOW-INCOME COMMUNITIES ACROSS AMERICA. ADDITIONALLY, THE 102 PROJECTS CONTAIN 9.1 MILLION SQUARE FEET (11.6 ACRES) OF SOLAR PANELS. IN 2021, HEDC RECEIVED A $50 MILLION NEW MARKETS TAX CREDIT ALLOCATION. HEDC THROUGH ITS AFFILIATE, HEDC NEW MARKETS, INVESTED IN SIX PROJECTS IN 2022, TOTALING $35.4 MILLION IN QUALIFIED EQUITY INVESTMENTS (QEIS). EXAMPLES OF NMTC PROJECT CLOSINGS: GRADY HEALTH SYSTEM PONCE INFECTIOUS DISEASE PROGRAM - ATLANTA, GAGRADY HEALTH SYSTEM IS A $41MM REDESIGN AND EXPANSION OF ITS AIDS/HIV CLINIC. THIS FACILITY PROVIDES THE MAJORITY OF AIDS/HIV TREATMENTS IN THE STATE OF GEORGIA. THE AIDS/HIV EPIDEMIC IS STILL ONGOING IN FULTON AND DEKALB COUNTIES AND DISPROPORTIONATELY AFFECTS THE AFRICAN AMERICAN MALE POPULATION. GRADY IS ALSO A CLOSE PARTNER WITH MOOREHOUSE COLLEGE'S MEDICAL SCHOOL, OFFERING RESIDENCY AND INTERNSHIP OPPORTUNITIES TO ALL OF THE MED STUDENTS AT THE SCHOOL. HEDC NEW MARKETS PROVIDED AN $8.0 MILLION QUALIFIED EQUITY INVESTMENT IN THE $41 MILLION PROJECT THAT RESULTED IN APPROXIMATELY 100 CONSTRUCTION JOBS, THE EXPECTED RETENTION OF 99 JOBS AND THE CREATION OF 22 PERMANENT JOBS. AGC LEARNING HUB - CHICAGO, ILTHE ACADEMY OF GLOBAL CITIZENSHIP'S (AGC) "CULTIVATE COLLECTIVE" IS A SUSTAINABILITY AND WELLNESS HUB LOCATED IN SOUTHWEST CHICAGO. THE HOLISTIC CAMPUS WILL UNITE EDUCATION, WELLNESS, SUSTAINABILITY, AND ECONOMIC VITALITY TO CULTIVATE A RESILIENT, EQUITABLE AND VIBRANT FUTURE FOR THE COMMUNITY. THE FIRST PHASE, ANCHORING A 40-ACRE FORMER PUBLIC HOUSING SITE WILL HOUSE AGC'S EXISTING K-8 SCHOOL, AN EARLY CHILDHOOD CENTER, COMMUNITY HEALTH CARE CENTER, THREE-ACRE URBAN FARM, NEIGHBORHOOD MARKETPLACE, SIX TEACHING KITCHENS AND A RANGE OF COMMUNITY WELLNESS PROGRAMS AND AMENITIES. COMMUNITY OUTCOMES INCLUDE 22 NEW K-8 SEATS, A NEW 120-SEAT HEAD START PROGRAM, ESPERANZA, A BIPOC CONTROLLED FQHC, WILL RUN AN ON-SITE COMMUNITY HEALTH CLINIC SERVING 1,200 PATIENTS ANNUALLY, REMEDIATION OF A BROWNFIELD, AND CONSTRUCT A NET ENERGY/WATER POSITIVE BUILDING THAT WILL GENERATE 105% OF ENERGY NEEDS FROM ROOFTOP SOLAR PANELS. AGC'S STUDENTS ARE 98% BIPOC AND 24% HAVE SPECIAL NEEDS. HEDC NEW MARKETS PROVIDED A $7.0 MILLION QUALIFIED EQUITY INVESTMENT INTO THE $53.1 MILLION PROJECT THAT RESULTED IN APPROXIMATELY 100 CONSTRUCTION JOBS AND THE CREATION OF 40 FULL-TIME QUALITY JOBS. CITY FRESH FOODS - ROXBURY, MACITY FRESH MAKES AND DELIVERS HEALTHY MEALS TO SCHOOLS, CHILDCARE CENTERS AND SENIOR CENTERS THROUGHOUT GREATER BOSTON. THE PROJECT PRODUCES OVER 15,000 MEALS PER DAY FOR A TOTAL OF OVER 3.5 MILLION MEALS PER YEAR. THE MEALS FEED APPROXIMATELY 25,000 LOW-INCOME INDIVIDUALS AND OVER 95% OF THE PEOPLE RECEIVING ITS MEALS ARE BIPOC. THE PROJECT WILL INCLUDE THE ACQUISITION OF AN 18,000 SF COMMERCIAL CONDOMINIUM PLUS 1/2+ ACRE OF LAND PROVIDING SPACE FOR EXPANSION. THE NEW PROPERTY CONSISTS OF A BUILDING SHELL THAT WILL REQUIRE A COMPLETE RENOVATION WITH ALL NEW SYSTEMS. THE NEW FACILITY WILL ENABLE CITY FRESH TO SECURE USDA CERTIFICATION AND PRODUCTION CAPACITY WILL INCREASE FROM 3.5 MILLION MEALS TO 8.4 MILLION. THE NMTC SUBSIDY WILL ALSO ENABLE MANAGEMENT TO EXPAND ADDITIONAL OWNERSHIP OPPORTUNITIES TO ITS EMPLOYEES, 98% OF WHICH IDENTIFY AS RACIAL OR ETHNIC MINORITIES. HEDC NEW MARKETS PROVIDED A $5.0 MILLION QUALIFIED EQUITY INVESTMENT INTO THE $15 MILLION PROJECT THAT RESULTED IN 37 CONSTRUCTION JOBS AND THE CREATION OF 226 PERMANENT JOBS. NDC COMMUNITY IMPACT LOAN FUND (CILF) FEDERAL HOME LOAN BANK MEMBERSHIP, NEW YORK FORWARD, SOAR, WASHINGTON SMALL BUSINESS FLEX FUND, DISCOVER/STATE OF DELAWARE EQ2, AND DELAWARE HISTORIC TAX CREDIT BRIDGE FUND NUMEROUS STUDIES HAVE DOCUMENTED THAT, EVEN AFTER CONTROLLING FOR DIFFERENCES IN CREDITWORTHINESS, BIPOC OWNED SMALL BUSINESSES EXPERIENCE HIGHER LOAN DENIAL RATES AND PAY HIGHER INTEREST RATES THAN WHITE-OWNED BUSINESSES. THIS TREND HAS ACCELERATED AS A RESULT OF THE COVID-19 INDUCED ECONOMIC DOWNTURN. BECAUSE OF THESE DENIAL RATES, BIPOC OWNED BUSINESS MUST RELY MORE UPON OWNER'S EQUITY AND LESS ON BANK DEBT. YET, BIPOC BUSINESSES HAVE LESS EQUITY AND LOWER HOUSEHOLD WEALTH TO DRAW FROM. AS A RESULT, BIPOC SMALL BUSINESSES LAUNCH WITH LESS TOTAL CAPITALIZATION THAN CONVENTIONAL BUSINESSES. WITH INADEQUATE CAPITALIZATION, THESE BUSINESSES SUFFER A HIGHER FAILURE RATE THAN WHITE-OWNED BUSINESSES. IN 2022, CILF, HEDC'S NATIONAL CDFI, OPERATED LOAN PROGRAMS AROUND THE COUNTRY, DEPLOYING MORE THAN $63 MILLION TO APPROXIMATELY 600 SMALL BUSINESSES THE VAST MAJORITY OF WHICH (87%) WERE OWNED BY PERSONS OF LOW INCOME AND IN TRADITIONALLY UNDERSERVED COMMUNITIES OF COLOR AND LOW INCOME. THOSE ENTREPRENEURS RETAINED MORE THAN 2,500 EXISTING JOBS AND PROJECTED ADDING ANOTHER 1,000+. IN DECEMBER OF 2021, NDC COMMUNITY IMPACT LOAN FUND (CILF) WAS GRANTED MEMBERSHIP INTO THE FEDERAL HOME LOAN BANK OF NEW YORK. AS A CDFI MEMBER, CILF WILL UTILIZE DRAWS FROM THE FHLB TO FUND UP TO SEVENTY PERCENT OF A LOAN MADE TO AN ELIGIBLE BUSINESS, HOUSING AND/OR NONPROFIT BORROWER. THE MEMBERSHIP WILL ALLOW CILF TO CONTINUE TO EXPAND ITS LENDING ACTIVITY, INCLUDING PRIORITY LENDING IN CDFI ELIGIBLE CENSUS TRACTS AND TO LOW INCOME BORROWERS. IN 2020, CILF RECEIVED A $38 MILLION EQ2 INVESTMENT COMMITMENT FROM DISCOVER BANK. CILF IN TURN MADE A LOAN TO THE UNIVERSITY OF DELAWARE SPONSORED FINTECH CENTER AND HAS BEEN FUNDING CONSTRUCTION PROGRESS PAYMENTS FOR THE FINTECH CENTER LOCATED ON THE STAR CAMPUS OF THE UNIVERSITY. WHEN FINISHED, THE BUILDING WILL HOUSE UNIVERSITY CLASSROOMS, OFFICES AND FINANCIAL LITERACY PROGRAMS DESIGNED TO SUPPORT THE GREATER DELAWARE SMALL BUSINESS COMMUNITY. THE LOAN PROVIDED BY CILF WILL BE USED TO PROVIDE LOW-COST, PATIENT, AND PERMANENT FIRST MORTGAGE FINANCING FOR THE CONSTRUCTION OF THE FACILITY. EXAMPLES OF THE LOANS MADE BY CILF IN 2022 INCLUDE: - AN $80,000 LOAN TO EZ DRYWALL AND CARPENTRY SERVICES CORP., AN AFRICAN AMERICAN-OWNED CONSTRUCTION COMPANY IN PORT ST. LUCIE, FLORIDA- A $300,000 LOAN TO CHEF K INC., AN AFRICAN AMERICAN AND WOMAN-OWNED JUICE MANUFACTURER AND DISTRIBUTOR IN WATERBURY, CT- A $55,000 LOAN TO LATINO EDUCATIONAL TRAINING INSTITUTE, A HISPANIC & WOMAN OWNED LOW-INCOME-OWNED NON-PROFIT THAT ASSISTS NEW IMMIGRANTS IN LYNWOOD, WASHINGTON

  Expenses $505,030 · Grants $274,437 · Revenue $658,813

As filed on the 2022 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

• NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT

  $5,500,000

  SUPPORT GENERAL OPERATIONS

• BSEL

  $10,920

  SUPPORT GENERAL OPERATIONS

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

• GROW AMERICA FUND INC

  501(C)(3) · LOANS AT BELOW-MARKET RATES FOR ECONOMIC DEVELOPMENT · DE

  Directly controlled by NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT INC

• KINGSBOROUGH HOUSING DEVELOPMENT FUND COMPANY INC

  501(C)(3) · HOUSING · NY

  Directly controlled by NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT INC

• NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT

  501(C)(3) · ECON DEV/ASSIST GOV'T/HOUSING · NY

• NDC GREEN RENEWABLE ENERGY ENTERPRISE NEXUS

  501(C)(3) · ECONOMIC DEVELOPMENT · NY

  Directly controlled by NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT INC

• NDC HOUSING & ECONOMIC DEVELOPMENT CORPORATION-GROUP RETURN

  501(C)(3) · ECON DEV/ASSIST GOV/HOUSING · VA

  Directly controlled by NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT INC

• NDC RESOURCES

  501(C)(3) · ECON DEV/HOUSING/ASSIST GOV'T · DC

  Directly controlled by NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT INC

• NDC SUPPORT I INC

  501(C)(3) · SUPPORT NDC · NY

  Directly controlled by NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT INC

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Provenance

Return type

form_990

Tax year

2022

Filed

10 November 2023

IRS schema version

2022v5.0

Source object

202303179349300940

Check it against the return as filed: the GivingTuesday Data Lake hosts a public copy of the original XML.

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