New Market Tax Credits
CSH was awarded a New Markets Tax Credit (NMTC) allocation for $25 million in the 2010 funding round to support the innovative financing of supportive housing projects throughout the country and is currently seeking future allocation. Use of this program allows CSH to finance non-residential uses, such as community health facilities, which are either co-located with or linked to supportive housing projects or populations.
The NMTC permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in investment vehicles known as Community Development Entities (CDEs). CDEs must apply to the Treasury Department’s CDFI Fund to compete for this allocation authority.
CSH used its allocation to finance three mixed use projects which combined permanent supportive housing units with other uses, including Federally Qualified Health Centers (FQHCs), on-site services space, and sponsor offices. CSH will use future allocations to finance permanent supportive housing developments with an eye toward multi-use projects with space for on-site support services, community health centers, and retail or commercial uses.
CSH is also a partner in the innovative Healthy Futures Fund, a debt-equity financing facility which finances affordable housing with Low Income Housing Tax Credits and supports community health centers with New Markets Tax Credits.