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NEWPORT BEACH, CA-CT/KDF Community Development Partners, a new entity formed by locally based Ct Realty Corp. and KDF Communities, received a $90-million allocation from the US Treasury Department's New Markets Tax Credits (NMTC) Program. The partners will principally use the funds to provide discounted equity to create infill mixed-use communities near transit-oriented sites in distressed areas.

"Because Southern California remains the nation's least affordable area, it is becoming increasingly difficult for hardworking families and residents to find affordable housing options," says Bob Campbell, managing member of CT/KDF. "By offering inexpensive equity, we can lower the developer's risk thus encouraging the development of affordable for-sale housing in low income communities that are closer to where people work or near public transportation."

The new entity's business strategy in disbursing their allocation is to primarily provide equity at a discount of up to 50% of the market rate for developments that combine affordable for-sale workplace condominium with retail and offices. CT/KDF believes that equity and mezzanine debt are the highest risk components of a project's financial structure, which is why equity is nearly non-existent for projects in distressed and low income areas.