Qualification Criteria: Severely Distressed Census Tracts

CY 2024-25 Allocation Agreement Targeted Distressed

Areas that are (1) characterized by at least one of items (i) – (vii) on the list below for each QLICI, or (2) characterized by at least two of items (viii) – (xiv)

i. Census tracts with poverty rates greater than 30 percent.  

Poverty rate provided on NMTC map

ii. If located within a non-metro area, median family income (MFI) does not exceed 60 percent of statewide MFI or if located within a metro area, MFI does not exceed 60 percent of the greater of statewide MFI or the metro area MFI. 

MFI provided on NMTC map 

iii. Census tracts with unemployment rates or least 1.5 times the national average.

Unemployment ratio provided on NMTC map

iv. Census tracts that are located in counties not contained within a MSA. Non-metro designation provided on NMTC map

v. For projects serving Targeted Populations – 

(a) Such projects are 60% owned by LIPs; or

(b) At least 60% of employees are LIPs; or

(c) At least 60% of projects gross income is derived from sales, rentals, services, or other transactions to customers who are LIPs.

vi. Federally designated as Indian Reservations, Off-Reservation Trust Lands(Opens a new window), Native American or Alaskan Native Village Statistical Areas(Opens a new window),  or Hawaiian Home Lands(Opens a new window)

vii. Island Areas of the United States as determined by the United States Census Bureau including Puerto Rico, U.S. Virgin Islands, Guam, the Commonwealth of Northern Mariana Islands and American Samoa 

viii. Census tracts with one of the following (information provided on NMTC map):

(a) Poverty rates greater than 25%

(b) MFI less than 70% of state or metro area 

(c) Unemployment rates at least 1.25 national average

ix. Brownfield sites as defined under 42 U.S.C. 9601(39)(Opens a new window). Documentation should come from the developer showing remediation is needed and will be completed as part of the project.

x. Areas designated as distressed by the Appalachian Regional Commission(Opens a new window) or Delta Regional Authority(Opens a new window)

xi. Colonias areas as designated by the US Dept. of Housing and Urban Development in Arizona, California, New Mexico and Texas.

xii. Medically underserved area (MUA) or geographic Health Professional Shortage Area (HPSA) as designated by HRSA, to the extent QLICI activities will result in the support of health-related services(Opens a new window).                     

xiii. Counties for which FEMA has (a) issued a “major disaster declaration” AND (b) made a determination that such county(Opens a new window) is eligible for both “individual AND public assistance;” provided that the initial project investment was made within 36 months of the disaster declaration.

xiv. A Census tract designated as Low-Income and Low-Access (LILA) to supermarkets, supercenters, or large grocery stores(Opens a new window) in the Food Access Research Atlas (FARA) by the U.S. Department of Agriculture Economic Research Service (USDA-ERS), to the extent QLICI activities will increase access to healthy food.

Deep Distress

xv. Census tracts with poverty rates greater than 40%; OR Census tracts with a median family income that does not exceed 40%; OR Census tracts with unemployment rates at least 2.5 times the national average (provided on NMTC map)

xvi. Federal Indian Reservations, Off-Reservation Trust Lands, Hawaiian Home Lands, and Alaska Native Village Statistical Areas (see vi. Above)

xvii. Census tracts in High Migration Rural Counties with a median family income at or below 85% of the applicable area median family income(Opens a new window). A High Migration Rural County is any county which, during the 20-year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10% of the population of the county at the beginning of such period

xviii. Island Areas of the United States (see vii. Above)

Identified States

Puerto Rico, Arizona, California, Colorado, Connecticut, Florida, Kansas, North Carolina, Texas, Virginia, and West Virginia

Note: Census data for tracts located in the Island Areas of the United States (American Samoa, Guam, Northern Mariana Islands and the US Virgin Islands) utilize 2006-2010 ACS Survey data and were not updated for the 2011-2015 survey. This eligibility data has been added to the “New Markets Tax Credit Low-Income Community Census Tracts - American Community Survey 2011-2015” file on the CDFI Fund’s website.