New Markets Tax Credit
CSH uses our New Markets Tax Credit (NMTC) allocations 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 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.
2015 Investments in Healthcare and Supportive Housing
CSH was awarded $40 million in NMTC allocation in 2015 to finance health centers and social service facilities that serve homeless and high-health needs patients and Supportive Housing residents. We have invested this NMTC allocation in four projects and have applied for additional NMTC to fund similar projects.
HealthRIGHT 360 (“HR360”) 1563 Mission (San Francisco, CA)
CSH provided $9.0 million of $51 million in NMTC financing to HR360, a Federally Qualified Health Center (“FQHC”) for its new 50,000-square-foot integrated health care facility. The new state-of-the-art facility will be LEED Gold Certified, and will replace two outdated facilities to serve an additional 5,300 homeless and high health need patients per year with integrated medical, mental health, and social services to be provided by HR360. CSH also provided free technical assistance to HR360 to help to strengthen connections with supportive housing providers in San Francisco. This transaction closed on 3/23/16 and is under construction.
Institute For Community (ICL) Integrated Health Hub (Brooklyn, NY)
CSH provided $11.0 million in NMTC allocation to ICL to help finance its $30 million project to expand its 9,300 SF building to 44,600 SF to consolidate and centralize its services to allow for more comprehensive and integrated care for its clients. The project will house a new 4,800 SF FQHC to be operated by Community Health Network, and will expand ICL’s mental and behavioral health clinic, life building programs for families and individuals, and care coordination services. Upon completion, it is estimated that the facility will serve an additional 5,400 people per year who currently suffer from mental illness, co-occurring medical conditions, and histories of substance use and housing instability. This project closed 6/3/2016 and is under construction.
NewCourtland LIFE Center (Philadelphia, PA)
CSH provided $11.0 million in NMTC allocation for the construction of a 15,000 SF LIFE Center to provide comprehensive medical services, adult daycare programs, therapy services, nutrition programs, social activities, and other supportive services to more than 200 low-income seniors to allow them to live independently for as long as possible as an alternative to nursing home care. The project is based on the national PACE (Program for All-inclusive Care for the Elderly) model, and will be built as part of a mixed-use building that will include 143 units of affordable housing for seniors, all of which are expected to be targeted to very-low income seniors. This project closed 9/13/16 and is under construction.
The Women's Home (TWH) WholeLife Service Center (Houston, TX)
CSH invested $9.0 million in NMTC allocation for a new 30,000 SF, LEED Silver Certified project to provide comprehensive supportive services to low-income women and families, including a FQHC operated by Spring Branch Community Health Center, after school/summer enrichment programs for children provided by the YMCA of Greater Houston, counseling provided by DePelchin Children’s Center, and adult education/workforce development programs provided by Memorial Assistance Ministries. It will directly serve 2,600 low-income residents, including those living in an 87-unit housing development completed by TWH in 2011 with 25 units dedicated to homeless individuals in Houston’s Coordinated Access System, and an 84-unit project for homeless families that TWH is developing down the street to include 40 units that are part of Houston’s Coordinated Access System. The project closed on 10/14/16 and is under construction.
2010 Investments in Mixed-Use Projects with Housing and Supportive Services
CSH was awarded $25 million in NMTC allocation in 2010 to finance community health centers and mixed-use projects that include support services and Permanent Supportive Housing to serve homeless and high health needs populations. We financed the following three projects with this NMTC award:
Bell Building (Detroit, MI)
CSH provided $7.0 million in NMTC allocation to Neighborhood Services Organization (NSO) for the historic rehabilitation of the 255,000 SF Bell Building in Detroit, MI. This project provides 79,000 SF of office space for NSO to operate its programs, which include mental health services, addiction treatment, case management, financial literacy, and nutrition classes, and space for an FQHC. The project is co-located with 155 units of supportive housing affordable to those at or below 50% of AMI financed with LIHTCs and NSO’s Supportive Housing program uses the “Housing First” approach to provide supportive housing services to the formerly homeless. Construction was complete in October 2013, and it has created 75 construction jobs that paid prevailing wages, and has created three and retained 142 full-time permanent jobs in this low income neighborhood. The project has allowed NSO to serve 200 additional homeless individuals with disabilities, mental illness, and addiction annually.
Paseo Verde (Philadelphia, PA)
CSH provided $7.0 million of $30 million in NMTC financing to Asociación de Puertorriqueños en Marcha (APM) and Jonathan Rose Companies to construct a mixed-use project consisting of 21,000 SF for APM’s offices, 7,600 SF for an FQHC operated by Public Health Management Corporation (PHMC), and 2,000 SF for a locally-owned and managed pharmacy co-located with 120 units of mixed-income housing. APM is a human service organization serving children and families in the foster care system to strengthen and unify families. The housing consists of 67 units financed with the NMTCs and 53 units financed with LIHTCs, including 12 Supportive Housing units. The project was completed in February 2014 and is the nation’s first LEED for Neighborhood Development Platinum Project. It has created 112 construction jobs paying Davis Bacon wages, and has created 121 and retained 33 full-time permanent jobs. APM serves over 500 families and 1,000 children annually, and PHMC serves 9,600 patient visits annually with primary medical and dental care.
Sugar Hill (Harlem, NY)
CSH provided $11.0 million in NMTC allocation to Broadway Housing Communities to help finance its $26 million mixed-use project consisting of a 9,800 SF Head Start early childhood education enter, 16,600 SF Children’s Museum of Art and Storytelling, 4,500 SF of office space for Broadway Housing, 4,300 SF for a health center, and a 72-space underground parking structure. The project is co-located with 123 units of affordable housing financed with LIHTCs, of which 25 are supportive housing units for the formerly homeless. Construction of the project was completed in October 2015 and is built to LEED Silver standards. It created 200 construction jobs paying prevailing wages, and 21 full time permanent jobs. At full capacity, the Head Start program is anticipated to serve 120 low-income children under the age of 5, and the museum will serve 25,000 visits per year.