Capital Impact Partners Awarded $60 million in New Markets Tax Credits To Attract Private Capital and Advance Social Impact Efforts
[ad_1]
New Markets Tax Credits helps us to support projects that open up economic opportunities and cross-generational wealth creation.
Tweet that
Capital Impact Partners is now a 10-time NMTC award winner – totaling more than $ 687 million. To date, the organization has used NMTC grants to help fund more than 78 national-level transactions that provide access to health care, education, healthy food, affordable housing, and the ability for seniors to age gracefully in their communities , have improved.
“Building equitable and inclusive communities requires investment from a wide range of organizations,” said Diane Borradaile, Chief Lending Officer of Capital Impact Partners. “The New Markets Tax Credit Program helps us bring key partners together to support projects that unlock economic opportunity and build intergenerational wealth.”
With today’s announcement, the total amount awarded through the NMTC program increases to $ 66 billion. In the past, the awards generated by the NMTC program $ 8 private investment for everyone $ 1 invested by the federal government. By the end of the 2020 financial year, the winners of the NMTC program had almost $ 56 billion in investments for low-income communities and businesses, with implications such as creating or maintaining nearly 871,000 jobs and building or renovating nearly 231.5 million square feet of commercial real estate.
“These investments will create jobs and fuel economic growth in urban and rural communities across the country,” said the US Treasury Secretary Janet L. Yellen called. “Many of the communities that will receive these funds have faced economic challenges over many decades. Challenges made more difficult by a lack of investment. It is critical that Congress sustain these investments over time by making the New Markets Tax Credit Program permanent. “
Creation of high impact projects by NMTCs:
Capital Impact has provided a variety of NMTC grants to launch projects across the country. Examples of these highly effective projects are:
Co-Location Services: Healthcare & Housing
To better serve the homeless who live in The angel’ Skid Row, the new 23,468 square foot Joshua House Health Center, was built to replace a much smaller location nearby.
The federally qualified health center will provide basic care, dentistry, optometry and mental health services as well as a wide range of wellness services. The site will serve 7,000 patients, 2,200 more than the previous facility. Ninety-nine percent of the clientele live below 200 percent of the state poverty line, and expanding services is critical to the continued health of the community. In addition, the health center will be housed together with a supporting housing facility that provides 55 housing units for the homeless.
Skid Row has the largest concentration of people suffering from chronic homelessness in the country. Estimates of the population of Skid Row range from 8,000 to 11,000 people. It is a predominantly black male population, although the number of women and children has increased in recent years.
Capital Impact has teamed up with the Nonprofit Finance Fund, the Los Angeles Development Fund and the US Bank Community Development Corporation $ 25.9 million NMTC transaction.
To eat healthy food:
Build in San Francisco, California – one of the most expensive cities in the country – is a big challenge. However, access to affordable, healthy food is needed more than ever. The Meals on Wheels San Francisco (MOWSF) volunteers donate more than 20,000 hours and the employees look after almost 5,000 customers – offering wellness and safety checks at home, nutritional advice and support. In response to increasing demand, MOWSF invested in a new 37,000 square meter kitchen facility that could prepare 10,000 meals in one shift while also having capacity for two [eight-hour] Shifts and maximum access seven days a week.
The MOWSF program is very inexpensive. It costs approx. $ 10 per day for food and two meal delivery and security checks for a senior home. Meals can be provided for a full year for about the same cost as a day in hospital. A 2013 study found that if each state increased the number of older Americans who were getting meals by just 1 percent, Medicaid more than. would save $ 109 million in medical costs annually.
Capital Impact has partnered with JPMorgan Chase, the San Francisco Community Investment Fund, Community Vision (formerly known as the Northern California Community Loan Fund) and First Republic Bank $ 41 million NMTC project.
Education:
Marygrove Conservancy is a not for profit organization that was formed to operate and manage the 53 acre area Marygrove College Campus in Detroit after its closure in 2019. The primary goal of Marygrove Conservancy is to facilitate the re-development of the campus as a cradle-to-career, pre-kindergarten through graduation “P-20” education campus.
The newly constructed single story building will cover approximately 29,000 square feet to support 144 children (infants through pre-K) from the socio-economic spectrum and provide comprehensive services. To ensure income diversity, half of the slots are subsidized by the federal government through Early Head Start and Head Start programs. The project will create 12 classrooms and have focused therapy rooms that will include play therapy, health therapy and sensory rooms.
Starfish Family Services, a respected social services agency and early childhood provider on the subway Detroit Market, will operate the site. Starfish is currently working with the University of Michigan Developing a year-round infant / toddler curriculum for the project specifically designed for a diverse group of children in an urban setting.
Capital Impact has teamed up with the Northern Trust Company and the Kresge Foundation $ 22 million NMTC project.
Community hubs:
Small nonprofits that support underinvested communities do not always have the resources to cover operating costs such as office space and legal advice. In Denton, Texas, Serve Denton is helping fill this void by enabling nonprofits to be financially self-sufficient and serve their communities while providing in-place services to community members.
With the construction of a new 48,000 square foot hub, Serve Denton will make room for a federally accredited health center, food bank, and many other nonprofit service providers in the area. The organizations will have affordable office space and share operating costs so everyone can focus more money on their customers.
Capital Impact has partnered with US Bank to support this $ 9.5 million NMTC project.
How do new markets tax credits work?
The NMTC allocations managed by the CDFI Fund enter the community through the following process:
- A Community Development Entity (CDE) submits an application to the CDFI Fund and requests the agency to allocate a certain dollar amount of tax credits.
- If his application is approved, the CDE is empowered to grant tax credits to an investor.
- The investor selected by the CDE receives a tax credit totaling 39 percent of the investment costs. The investor can take advantage of this tax credit over a period of seven years.
- In return for these tax credits, the investor makes a qualified equity investment (QEI) in the CDE.
- The CDE must use the QEIs received from the investor to fund businesses or real estate projects in low-income communities where the poverty rate is 20 percent or more or the median income is 80 percent or less than the Area Median Income. The CDE also has the option to invest in other CDEs that provide credit in low-income areas.
About Capital Impact Partner:
Through capital and commitment, Capital Impact Partners supports people in building communities of opportunity that overcome barriers to success. We advocate for key issues of equity and social and economic justice through the use of mission-driven finance, capacity-building programs and impact investing opportunities.
Capital Impact, a nonprofit financial institution dedicated to community development, has more than. paid off $ 2.5 billion since 1982. In 2020, Capital Impact founded CDC Small Business Finance, a new company under a leadership team and a national strategy to reinvent traditional and established financial systems. Our goal is to ensure these systems do justice to colored communities in order to advance community-led solutions that support economic mobility and wealth creation.
Our leadership in creating financial and social impact has resulted in Capital Impact being rated by S&P Global and recognized by Aeris for our performance. Headquarters in Arlington, Virginia, Capital Impact Partners operates nationally, with local offices in Austin, TX, Detroit, Michigan, New York, NY, and Oakland, California.
Learn more at www.capitalimpact.org and www.investedincommunities.org
SOURCE Capital Impact Partner
similar links
www.ncbcapitalimpact.org
[ad_2]