Community Housing Capital (CHC) is excited to announce the close of its first New Markets Tax Credit (NMTC) Allocation of $30 million, enabling five NeighborWorks organizations to scale their homeownership programs. CHC supports the NeighborWorks® network's commitment to homeownership as a method to create equity for families and communities by providing the missing capital these critical projects require.
In anticipation of an award, many NWOS submitted highly impactful, shovel-ready for-sale housing projects pipelines to CHC, hoping to be among the final few selected for an allocation. Final allocatees were selected using CHC's Impact Measurement and Management System (IMM), overlaid with its NMTC Scoring Criteria and a BIPOC lens.
In an article by the Novogradac Journal of Tax Credits, when asked about his process of choosing from among so many worthy projects, Dana Chestnut, CHC’s Chief Loan Officer, said, “We’re assessing how important an allocation will be for any selected town. How many jobs will the project create? We have a unique challenge of stepping back and looking at all of these things while also considering the overall community and network impact.”
With a financial structure developed by Smith NMTC Associates, LLC, our partner in the technical work of leveraging New Market Tax Credits, and US Bank CDC, our tax credit investor, on February 17, 2022, the following five organizations closed with CHC on an injection of NMTC equity through its $30 million allocation. An additional $12 million in construction loans were originated on CHC’s balance sheet, providing further leverage.
NHS of Baltimore, Baltimore, MD
A $6M allocation will rehab 27 severely blighted single-family rowhomes, with more than half reserved for low-income buyers.
Piedmont Housing Alliance, Charlottesville, VA
A $6 million allocation will help rehab and build 17 homes in two separate neighborhoods. All the homes will be sold to low-income buyers, many of whom are BIPOC applicants.
Dayton's Bluff Neighborhood Housing Services, Saint Paul, MN
A $7 million allocation will enable infrastructure on 32 lots and will rehab and construct 15 homes with 80% reserved for low-income buyers.
NeighborWorks Columbus, Columbus, GA
A $6 million allocation will build 20 new homes in South Columbus, with 60% reserved for low-income buyers.
Avenue Community Development Corporation
A $5 million allocation will create approximately 18 homes for low-income buyers with median incomes averaging $36,000 per year.
"Our NeighborWorks customers face huge financing gaps for affordable homeownership projects in every state. We hope to expand the success of this first NMTC allocation with a second award from the CDFI Fund," said Cindy Holler, President and CEO of CHC. "No matter the outcome of our 2nd application (to be announced this fall), we will relentlessly continue our quest to get capital into the neighborhoods where it is needed most."