The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund has announced an award of $55 million in New Markets Tax Credits (NMTC) to CSH (Corporation for Supportive Housing) as part of the federal government’s 2018 round of allocations.
“With this opportunity, we can leverage even more resources to drive projects leading to new jobs and economic development in some of the most economically distressed neighborhoods in our country,” said CSH President and CEO Deborah De Santis. “Not only will we be able to spur economic revival in places where it’s needed most, this new NMTC allocation will help forge new partnerships and fulfill our goals of expanding housing and healthcare services to hundreds who are struggling to improve their lives.”
CSH provides financial products to supportive housing developers, as well as technical assistance and training to nonprofits that may not customarily work with agencies such as mental health, substance use and medical services providers. CSH will use its new allocation for mixed-use projects in highly-distressed, low-income communities. The NMTC investments will lead to more housing opportunities for those experiencing homelessness, struggling with disabilities, the elderly, families, veterans and formerly institutionalized individuals. The housing and community facilities developed will incorporate conveniently accessible support services including: primary healthcare; behavioral and mental health services; health and wellness programs; case management services; and educational and job training.
This is CSH’s fifth NMTC award. CSH has used its prior rounds to leverage other sources of capital to finance projects that have created hundreds of supportive housing units and set the stage for nearly 150,000 new healthcare visits annually by people who most likely lacked care in the past. In addition, CSH investments have poured millions of dollars into economically depressed areas and generated close to 3,000 high-quality construction and permanent jobs.
“CSH provides tailored, below-market rate financing for projects that have a limited ability to carry market rate debt, especially since they involve nonprofits and are planned for areas that are struggling economically,” said CSH’s Chief Lending Officer, Brigitt Jandreau. “Our funding is a catalyst for new projects and jobs that might not otherwise come to fruition, and this new allocation will go a long way toward expanding our work nationally.”