The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund has announced an award of $65 million in New Markets Tax Credits (NMTC) to CSH as part of its 2015-16 round of allocations.
“With this opportunity, we can leverage even more resources to drive projects that will lead to new jobs and economic development in some of the most economically distressed communities 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 us fulfill our goal of expanding housing and healthcare services to hundreds who are struggling to improve their lives.”
CSH provides financial products to traditional supportive housing developers, as well as technical assistance and training to nonprofits that may not customarily work with housing providers such as mental health, substance use and medical service providers. CSH will use its new allocation with an eye toward mixed-use projects in highly-distressed, low-income communities that provide housing for vulnerable populations with space for onsite 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 third NMTC award. CSH has used its prior rounds of NMTCs to leverage other sources of capital to finance projects that have created hundreds of supportive housing units and at full capacity will serve nearly 65,000 new healthcare visits annually. In addition, CSH investments have poured millions of dollars into economically depressed communities and upon completion will generate close to 1,200 high-quality construction and permanent jobs.
With this new award, CSH will provide capital to projects that will add another 600 units of affordable housing, including supportive housing, and will create over 1,000 new 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.”