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CHICAGO-The Urban Development Fund, an affiliate of locallybased Aries Capital, has received an allocation of $60 million withthe New Markets Tax Credit program by the US Department of theTreasury's Community Development Financial Institutions Fund. TheTreasury awarded the Urban Development Fund (UDF) the tax creditfor use in low-income communities. The UDF will provide financingfor projects for the recovery and redevelopment of low-income areasthroughout the US, says Neil Freeman, president of the fund. "Weleverage our money with other money or subsidies," Freeman says."That $60-million allocation probably will be $100 million to $300million worth of projects."

UDF will focus on providing debt and equity financing for theredevelopment of hotel, retail, industrial and office space. Thefinancing UDF provides has to be for redevelopments or newdevelopments that will improve the community and create jobs,Freeman says. A portion of the allocation will be used for projectsin the Hurricane Katrina Gulf Opportunity Zone and will also likelybe used for projects here, he says. With previous allocations,financing was provided for projects in Louisiana, Mississippi,Illinois, Kentucky, Ohio, California, Minnesota, Florida, NewHampshire, South Carolina and Texas, Freeman says.

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