Main Street Hanover and Neighborhood Assistance Programs (NAP)

submitted by Justine Trucksess, Manager, Main Street Hanover

2017 has the potential to be an important year for the Main Street Hanover program.  Our group is completing the application to become a 501c3 organization and looking to create financial sustainability for the revitalization movement in Hanover.  Part of that sustainability will come from a diversification of fundraising opportunities for the program.  The operations of Main Street Hanover are funded by a partnership of the Hanover Area Chamber of Commerce, the Hanover Borough and the York County Economic Alliance.  These groups see value in increasing the economic capacity of the downtown to improve the tax base, business climate, and quality of life in Hanover.  While their support funds the operation of Main Street, all of the other events and initiatives for the downtown (Christmas decorations, Santa’s Cabin, flower planters and special events) rely on donors and sponsors in the community.  These programs will always serve as great fundraising opportunities for the downtown, but relying on our current funding partners and generous donors so heavily can limit how much our program is able to do and impact.

One of the ways Main Street Hanover is looking to create this financial sustainability is to create a Neighborhood Assistance Program (NAP).  There a few forms of NAP. The 2016-17 state budget maintains $18 million in NAP funding within the tax code. The Neighborhood Assistance Program includes five main components:

  • Neighborhood Assistance Program (NAP) includes projects serving distressed areas or that support neighborhood conservation, which fall under one of the following categories: affordable housing programs, community services, crime prevention, education, job training, or neighborhood assistance. A tax credit of up to 55% can be given.
  • Special Program Priorities (SPP)targets specific problems and projects which the state has designated as priorities in a distressed area.
  • Neighborhood Partnership Program (NPP)is comprised of long-term collaborations (five years or more) of business, government, and community leaders to produce a comprehensive, asset-based and relationship-driven approach to community development. A tax credit of 75% or 80% can be given based on the length of the program (Please refer to the guidelines for more information).
  • Charitable Food Program (CFP)is designed to help regional food banks and emergency food providers. CFP funding is supplied through tax credits given to businesses making contributions to an approved provider.
  • Enterprise Zone Program (EZP) is an incentive program that provides tax credits to companies investing in the rehabilitation, expansion, or improvement of buildings or land located within designated enterprise zones.

NAP provides tax credits to encourage community organizations to invest in projects that support economic development.  These programs are like the much more familiar EITC credits many participate in locally. Based on the Community/Strategic Plan, a neighborhood organization working holistically on multiple projects, form collaborations for success. Businesses commit to the project for five years (75% tax credit) or six years (80% tax credit), with a minimum contribution of $50,000.

“We continually see strong participation in the Neighborhood Assistance Program, and that’s exciting to us because it means that organizations in our community are taking a proactive approach to offering important resources, combating adverse impacts on health, safety and welfare, and ensuring that blighted areas get back on the right track to good fiscal well-being,” Department of Community and Economic Development Secretary Dennis Davin said. “We anticipate a robust response to the program again this year and look forward to the positive impacts it will create across the commonwealth.”

Main Street Hanover will continue to work towards creating a more vibrant downtown and programs like NAP are just one of the ways we could be able to support our initiative.  If you are interested in learning more about the Neighborhood Partnership Program and how you can invest in your community’s economic development, please contact Justine Trucksess, Manager, Main Street Hanover.

Learn More:

Learn more about the NAP program here.  Examples of successful NAP programs can be found here (Allentown) and here (Bethlehem).