California Insurance Commissioner Dave Jones on Thursday paid homage to the insurance industry for “tens of millions” of charitable dollars that came from the insurance industry as part of the California Organized Investment Network.
Jones made his remarks at the COIN summit in Sacramento, which was also broadcast to the media via conference call.
Each year the California Department of Insurance allocates $10 million in tax credits to support $50 million in community development investments.
Under the program the investors earn a tax credit worth 20 percent of their investment, which can be applied to their state personal income tax, corporation tax or insurer premium tax.
Jones noted that many of the investments were in low income communities and would help create more jobs, affordable housing, community centers, schools, health clinics and generate revitalization of neighborhoods and communities.
In total there were 14 projects funded through the state’s COIN program.
“The department has approved the first round of tax credit investments,” Jones said, before rambling off a list of large investments from insurers and their beneficiaries.
He called out two insurers for particularly large investments.
The California State Automobile Association Insurance Group and MetLife Insurance Co. totaled $15.3 million in community investments through the COIN program in the first half of 2015.
- $4.8 million ($960,000 tax credit) into Enterprise Community Investment to be used to rehabilitate 96 affordable rental housing developments in Morgan Hill, creating 16 permanent and 132 temporary jobs for California workers.
- A $3 million loan at 0 percent interest ($600,000 tax credit) to Nehemiah Community Reinvestment Fund to purchase, renovate and sell single-family homes to low income buyers in 10 counties through Nehemiah’s Neighborhood Restoration Program.
- 1,029 temporary jobs are expected to be created over its five-year term.
- $7.5 million ($1.5 million tax credit) into the Enterprise Community Loan Fund to be used to refinance the acquisition of an affordable rental housing property located in San Francisco, to acquire and develop 100 units of affordable housing in the Korea Town area of Los Angeles, and to finance Rocketship 5, an educational facility in San Jose.
- The projects will create 45 permanent and 743 temporary jobs in the first three years.
“The department’s tax credit program encourages insurance company investment in our communities, which helps create more jobs, more affordable housing and funds other projects that improves the quality of life in communities and neighborhoods throughout the state,” Jones said.
For the next round of funding for the year there is $9.3 available to support $46.5 million in private investments.
The second round is scheduled to run from Aug. 3 through Oct. 2.
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