ST. LOUIS-Locally based US Bancorp Community Development Corp. has received a $135-million New Market Tax Credit allocation from the US Treasury's $4.1-billion Community Development Financial Institutions Fund. Equipped with the allocation, the company will provide equity and equity-like debt and favorable loan rates and terms to for-profit and nonprofit developers for new and renovated real estate across all sectors.

"It will be targeted to the revitalization of low- and moderate-income areas," a spokeswoman tells GlobeSt.com, "and can apply to office, industrial, retail, mixed-use and multifamily projects. It allows us to provide funding to developers who may be reluctant to invest in some areas. We get cents off the dollars we provide and can write off the extra amount on our income taxes at the end of the year." In many cases, the New Market credits are teamed with other incentives like historic preservation tax credits and TIFs.

The spokeswoman says US Bancorp's community development team expects the allotment will be utilized within a year. The aggregate development funding that might be leveraged from the allotment "can't be predicted ahead of funding because it will vary by project," she says.

The federal program has been in effect for five years. The institution has used previous allotments to fund several NMTC developments nationwide. Among the local projects is the renovation of the old post office and the Rudmann Building along Washington Avenue. The project targeted "a once-blighted area that is now bustling," the spokeswoman says.

US Bancorp's Community Development Corp. is a subsidiary of Minneapolis-based US Bancorp and one of 63 organizations selected for NMTC awards from among the 254 that applied. Locally based McCormack Baron Salazar also was selected to receive an NMTC award for $60 million. A call to the developer was not returned by deadline.