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New Markets Tax Credits News Briefs - November 2016

The Community Development Financial Institutions (CDFI) Fund on Sept. 28 announced two bonds, totaling $265 million, were issued on behalf of four CDFIs in fiscal year (FY) 2016. Community Reinvestment Fund, USA, issued a $165 million bond on behalf of three eligible CDFIs. Capital Impact Partners in Arlington, Va., received a $40 million bond loan to finance licensed senior living and long-term care facilities, commercial real estate, rental housing, health care facilities and charter schools. Low Income Investment Fund in San Francisco received a $50 million bond loan to finance day care centers, licensed senior living and long-term care facilities, commercial real estate, rental housing, health care facilities and charter schools. The Reinvestment Fund in Philadelphia received a $75 million bond loan to finance small businesses, day care centers, commercial real estate, rental housing and health care facilities. Bank of America issued a $100 million bond on behalf of Self-Help Ventures Fund in Durham, N.C., which will use the bond loan to finance commercial real estate and charter schools. A total of $1.11 billion has been guaranteed by the CDFI Bond Guarantee program since its inception. 

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Lisa M. Jones, manager of the CDFI Fund Bond Guarantee program, received the Samuel J. Heyman Service to America Medal Sept. 20 at a ceremony held in Washington, D.C. Jones received  one of eight Samuel J. Heyman Service to America Medals for her pioneering work to launch the CDFI Bond Guarantee program. Also known as “Sammies,” these awards are presented by the nonprofit, nonpartisan Partnership for Public Service to honor civil servants. Jones was one of 32 federal employees named as finalists for the 2016 Sammies.

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On Sept. 7, U.S Bancorp Community Development Corporation (USBCDC) announced the closing of financing for a $27 million expansion of the Lowell Community Health Center (Lowell CHC). A total of $21.5 million in new markets tax credit (NMTC) allocations were provided by Primary Care Development Corporation (PCDC) ($13 million) and Community Health Center Capital Fund ($8.5 million). USBCDC provided $7.9 million in tax credit equity, with additional debt financing provided by Eastern Bank ($12.3 million) and PCDC ($4.3 million). Boston Community Capital’s Loan Fund provided $4.7 million and The Property and Casualty Initiative provided $3 million in financing. Expansion plans include renovating 65,000 square feet of space to provide new dental and vision services and expand existing medical services. This plan is expected to nearly double the health center’s capacity to provide urgently needed primary health care to Lowell’s underserved residents. 

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Border Communities Capital Company LLC (BCCC), an affiliated entity of Chelsea Investment Corporation, announced Sept. 18 the closing of $7.7 million in NMTC allocation for One World Beef’s (OWB) acquisition and rehabilitation of the former National Beef processing plant in Brawley, Calif. The property includes a 337,000-square-foot beef processing facility on approximately 100 acres. Eric Brandt, chief executive officer of OWB, said in a press release that he anticipates hiring approximately 200 employees initially and growing to approximately 600 people as the facility increases production over a four-year period. Jerry Hannon, chief financial officer for Chelsea, said in a press release that when the beef processing plant was closed in April 2014, it had a tremendous negative impact on Imperial County, which has one of the highest unemployment rates in the nation at 23.7 percent as of June. Additional financing came from Cityscape Capital Group LLC, which provided an additional $6.6 million in NMTC loans, while JPMorgan Chase was the equity investor for the full NMTC allocation. Imperial County and the Imperial Irrigation District each provided $2.5 million loans. Clearinghouse Community Development Financial Institution and Bank of Southern California each provided $5 million loans. 

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The grand opening for the Lac Vieux Desert Health Center in Watersmeet, Mich., was Sept. 7. The Lac Vieux Desert Band of Lake Superior Chippewa Indians partnered with Chickasaw Nation Community Development Endeavor on the $13.5 million, 33,000-square-foot facility. The new health center has 12 exam rooms with two procedure rooms and a care team area, a nine-chair dental suite with lab services, a retail pharmacy, imaging suite, clinical lab, chiropractic and physical therapy department, an optical department with sales area and two patient exams, behavior health and family services, administrative suite and a community gathering room. NMTC financing for the health center was provided by the Chickasaw Nation Community Development Endeavor LLC (CNCDE). The NMTCs were part of the $20 million in NMTCs allocated to CNCDE in June 2015. Additional financing was provided by the Shakopee community, the Lac Vieux Desert Band of Lake Superior Chippewa Indians community.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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