New York City Regional Center (NYCRC) announced the closing of $15 million in New Market Tax Credit (NMTC) financing for the Charter School for Law and Social Justice in the Bronx. This is the 11th charter school in New York City and the eighth in the Bronx to receive funding from an NYCRC-managed entity. The financing will support the renovation of a six-story, 39,417-square-foot building to house a new middle school and a community daycare center.
The middle school will accommodate 330 students and include classrooms, a cafeteria, and double-height ceilings on part of the fifth and sixth floors for a multi-purpose gymnasium. The daycare center, spanning 8,916 square feet, will be leased to Sunshine Learning Center and serve approximately 160 children from infancy through kindergarten. Additionally, the financing will provide working capital reimbursements for an existing 47,300-square-foot high school serving 505 students, furthering the charter school’s mission to address the needs of underserved communities in the Morris Heights section of the Bronx.
Founded in 2015, the Charter School for Law and Social Justice offers an inclusive educational program that prepares students academically and empowers them to engage in social issues. The school was inspired by initiatives at New York Law School led by Professor Richard Marsico, whose work on the school-to-prison pipeline and the Street Law Program highlighted the need for a school focused on law and social justice. The school emphasizes community engagement, partnering with local groups to provide real-world experiences, including mentoring programs with law students and attorneys, community service projects, and extended support for English language learners and students with special needs.
The $15 million transaction utilized a portion of a previous $45 million NMTC award from the U.S. Department of Treasury to NYCR-CDE, a Community Development Entity managed by NYCRC. Since 2016, NYCR-CDE has received seven annual tax credit awards totaling $315 million. Previous fundings include the construction of the National Urban League’s new headquarters in Harlem, redevelopment of the Major Owens Community Center in Brooklyn, and expansions of charter schools such as DREAM in the South Bronx and Achievement First Linden Middle School in Brooklyn.
The New Market Tax Credit Program, established by Congress in 2000, aims to stimulate private investment and economic growth in low-income communities. The program provides federal income tax credits to investors who make equity investments in low-income neighborhoods, helping to break the cycle of disinvestment. According to NYCRC, for every $1 invested by the federal government, the program generates $8 of private investment. Since 2001, $81 billion in NMTCs have been invested, resulting in the construction or rehabilitation of approximately 259 million square feet of commercial real estate.
