Selected NMTC Projects in Illinois 11th District

One Hope United’s Joliet Early Learning Center

One Hope United’s (OHU) Joliet Early Learning Center will open in March, thanks to an Illinois state grant and $15 million in new markets tax credits.

This new center is one of 12 One Hope United early childhood education programs in the Chicago metropolitan area offering a safe, nurturing, learning environment for children. Each center utilizes a unique “learn by doing” approach that allows children to explore and understand the world around them. All One Hope United centers are staffed by early childhood professionals who are passionate about developing lifelong learners.

Wayside Cross Ministries – Homeless Center

The NMTC provided financing to Wayside Cross Ministries for construction of a four story transitional housing, rescue mission and administrative office facility to be located at 215 E. New York Street, Aurora, Illinois.

Wayside Cross is a Section 501(c)(3) charitable organization. Its programs include: (i) the Master’s Touch Ministry which is a comprehensive 6-month residential, life transformation ministry for troubled men whose lives are out of control as a result of drugs, alcohol or some other destructive behavior pattern, (ii) the Lifespring Ministry which is a long term transitional living program for homeless women and women with children, who have lost their housing due to addiction, abuse or financial reasons, and (iii) the Urban Youth Ministry which is dedicated to empowering “at-risk” inner city youth, between the ages of 6 and 10, to reach their full God-given potential through focused educational, recreational, athletic, and other spiritual programs.

Arts center project to ‘help foster the arts in Aurora’

Work crews are beginning interior renovation this week of the former Waubonsee Community College building to remodel it into a downtown Aurora arts center.

The 80,000-square-foot building at Stolp Avenue and Galena Boulevard eventually will include a 25,000-square-foot school for performing arts, 8,000 square feet of rehearsal space for the Paramount Theatre, a 4,000-square-foot restaurant space, 38 apartments designed to support working artists and guest apartments for some Paramount Theater performers.

Supporting Hesed House’s Employment And Training Program

Hesed House is a 501c(3) under the Public Action to Deliver Shelter (PADS) program dedicated to alleviating the plight of poor and homeless persons. Its mission is to feed the hungry, clothe the naked, shelter the homeless, and give people a chance to hope again. Funds from the NMTC will allow 50 individuals to participate in the Hesed Employment And Training (HEAT) team, a job readiness and training program which provides trial jobs to homeless persons so they can master the “soft skills” needed in the workplace.

Recent NMTC Projects – January 2019 Update

Below are a few NMTC projects closing or holding a ribbon cutting over the last few weeks.

American SpiralWeld Pipe Breaks Ground in Rural East Texas

The HWH Group, a full-service engineering, construction and consulting firm that provides finance, community development opportunities, site selection and a specialized New Markets Tax Credit incentives group, announced that American SpiralWeld Pipe Company is breaking ground on a 140-acre site in Paris, Texas for the Company's new advanced manufacturing facility.

Responsive Surface Technology, LLC Receives Follow-On Funding Through Invest Atlanta Programs

Responsive Surface Technology, an Atlanta-based Smart Bed and sleep technology innovator, today announced the closing of $3.2 million of additional funding. The funding comes from two Invest Atlanta-affiliated programs, the Atlanta Advantage Loan Fund and New Markets Tax Credit financing. The capital will not only enable ReST to expand its marketing and research efforts, but also help it open its first company-owned store in West Midtown.

TD Community Development Company Supports Company Committed to Environmentally Friendly Expansion

TD Community Development Corporation, a subsidiary of TD Bank, recently allocated $15 million in New Markets Tax Credits (NMTC) to assist Phoenix Packaging Operations, LLC, a minority-owned packaging company located in Dublin, Virginia.

New State Fact Sheets

We’ve updated portions of our NMTC state fact sheets. They now have data and maps on investments through September 30, 2018. The jobs data still only goes through 2015, using data from our most recent Economic Impact report (December 2017). Each state page (click the map below) also includes videos and written profiles of NMTC success stories.

The NMTC, Business Financing, and Entrepreneurship

By Paul Anderson

Today, the White House released its annual Economic Report of the President. The report included a sidebar on "Distressed Communities and the Tax Cuts and Jobs Act that mentions the New Markets Tax Credit (see right) and then later goes on to describe the Invest in Opportunity Act (IOA).

While the IOA and New Markets Tax Credit (NMTC) target many of the same census tracts, no question that the NMTC and the IOA serve different but complementary purposes. Opportunity Funds will make equity investments in businesses. Community Development Entities mostly use the NMTC to provide debt to businesses and community facilities. That's why we are so excited see these programs working side by side. 

We appreciate the White House highlighting the NMTC's success, but I do feel the need to correct a couple of misconceptions about the NMTC, real estate, and entrepreneurship.

First of all, we should not be too quick to dismiss the value of construction and rehabilitation projects in creating jobs and opportunity. Construction jobs - while often temporary - typically provide good pay and benefits. The construction industry - perhaps more than any other industry - offers apprenticeship and on the job training, providing an avenue for advancement. Construction spurs secondary economic activity (down the supply chain) that is easy to identify and measure. While an increase in construction income and the resulting macroeconomic boost to the economy may be temporary, real estate investment creates or improves a tangible asset that will serve a community for decades to come.

White House Comment on Distressed Communities and the Tax Cuts and Jobs Act

"The Federal government has an active set of policies to encourage investment and job creation in distressed communities, including Empowerment Zones, Enterprise5 Communities, Renewal Communities, and New Market Tax Credits (NMTC). The NMTC—arguably, the most successful of these programs—is structured to induce “patient” capital, providing substantial investment incentives if assets are held over a full seven years. As a result, although the majority of NMTC recipients would not have otherwise invested in the benefiting community, real estate has been the investment of choice, both because real estate returns are naturally long-run and because these investments clearly complied with NMTC regulations (Bernstein and Hassett 2015). But real estate is likely not the most effective tool for job growth, and the program is reportedly difficult for entrepreneurs to navigate."

Purpose of NMTC-Financing (2003-2016)

Purpose of Loan or InvestmentTotal (2003-2016)Percentage (2003-2016)
Total$43,572,242,863
Real Estate$22,011,770,193 50.5%
Non-Real Estate$21,560,472,67049.5%

Secondly, it is a misconception that the NMTC almost exclusively finances construction. While a majority of NMTC projects (roughly 65%) involve some sort of construction or rehabilitation, most NMTC real estate projects also involve the provision of working capital, purchase of equipment, or other financing supporting for an operating business. When you look past the project level and trace NMTC transaction activity to the primary purpose of each financial note, the share of real estate vs non-real estate is about even (see table to the right).

Finally, while it is true that the NMTC does not often provide direct financing to entrepreneurs, the program has been used to capitalize small business loan pools supporting emerging businesses and startup. And increasingly, the NMTC is financing projects that support the entrepreneurial ecosystem. In 2016, according to NMTC Coalition survey data, about 6% of projects financed were business incubators, creative office space, and other physical infrastructure that helps accelerate the development of small businesses, support aspiring culinary entrepreneurs, or foster social enterprise. Below find a few of the many examples across the country. 

Supporting the Entrepreneurial Ecosystem

The Highlander Accelerator, Omaha, NE

The Highlander Accelerator in Omaha, Nebraska, rejuvenated the blighted former site of a failed 23-acre public housing complex demolished in 2009.

The Accelerator offers rents 50 percent below the market rate to facilitate a carefully selected mix of nonprofit and commercial tenants that maximize impact on the educational opportunities, health, and well-being of disadvantaged neighborhood residents. The facility includes over 17,500 SF for Whispering Roots (right), a nonprofit aquaponics organization that will produce fish and leafy greens in a high-tech “closed loop” system.

Studebaker Innovation Center/Renaissance District, South Bend, IN

Adaptive reuse of a former Studebaker automobile manufacturing facility (built between 1923 and 1946) into office, education, incubator, advanced manufacturing and training space. Created 634 full-time equivalent jobs and 131 construction jobs.

An Interview with Andrew Wiand, Executive Director of enFocus, at the Renaissance District

Rocky Mountain Innosphere, Fort Collins, CO

Supporting Culinary Entrepreneurs

The Findlay Kitchen, an Incubator in Cincinnati

Union Hall – A Dynamic Center of Gravity for Entrepreneurs in Cincinnati, OH

LA Prep Commercial Kitchen Incubator

NMTCs Serve Up New Space for Food Business Entrepreneurs

Ivy Tech Culinary School

R House: Baltimore's Emerging Chefs

FareStart Culinary Academy Puts Homeless on Path to Success

BOOM! Health Project Includes Workforce Training Cafe

Enterprise Community Partners and Chase financed a mixed-use project in the Bronx that includes, among other things, a café called BOOM!Café, which will double as a community space and workforce training center on the ground floor. BOOM is working with Catalyst Kitchen, an incubator of food service social enterprises based in Seattle, to establish a training program and business model for the café.

Learn more about the project.

Twenty-Seven House Republicans Send NMTC/HTC Support Letter to Brady and Ryan

Late last week, Congressman Smucker (R-PA) took the lead on a letter urging Speaker Paul Ryan and Chairman Kevin Brady to preserve the Historic Tax Credit (HTC) and make the New Markets Tax Credit (NMTC) permanent. The letter was open to House Republicans and 26 of his colleagues signed on. Here is the full list:
  • Don Young (R-AK)
  • Bradley Byrne (R-AL)
  • Ted Yoho (R-FL)
  • Adam Kinzinger (R-IL)
  • Susan Brooks (R-IN)
  • Ralph Abraham (R-LA)
  • Bruce Poliquin (R-ME)
  • Fred Upton (R-MI)
  • Ann Wagner (R-MO)
  • John Fason (R-NY)
  • Steve Chabot (R-OH)
  • Bob Gibbs (R-OH)
  • Bill Johnson (R-OH)
  • David Joyce (R-OH)
  • Steve Stivers (R-OH)
  • Michael Turner (R-OH)
  • Brad Wenstrup (R-OH)
  • Lou Barletta (R-PA)
  • Ryan Costello (R-PA)
  • Brian Fitzpatrick (R-PA)
  • Lloyd Smucker (R-PA)
  • Glenn Thompson (R-PA)
  • Louie Gohmert (R-TX)
  • Barbara Comstock (R-VA)
  • Mike Gallagher (R-WI)
  • Evan Jenkins (R-WV)
  • David McKinley (R-WV)

Helping Meet Housing Needs After Katrina

Housing damaged by Katrina

After Katrina and Rita, the New Markets Tax Credit (NMTC) served an important role in rebuilding community facilities including hospitals and schools, helping businesses replace damaged furniture and equipment, and bringing life back to devastated areas. Disasters isolate low-income areas that already lag far behind affluent communities in the availability of basic services like healthcare as well as the physical infrastructure needed to grow businesses and create economic opportunity. The construction of facilities and infrastructure is important, but economic recovery is difficult - if not impossible - if residents have no where to live. Katrina and Rita collectively displaced 1.3 million people and caused severe or major damage to tens of thousands of owner-occupied homes in areas struggling with high poverty and unemployment before the storm.

The NMTC played an underappreciated role in financing new or renovated homes for displaced families after the storm. NMTC financing supported more than 1,000 single-family homes for displaced residents of disaster areas. One example is a groundbreaking, scalable project supported by Greenline Ventures, a community development organization that finances projects that provide returns for investors and create positive impact in communities.

A Model for Rebuilding Homes

Hurricanes - like thunderstorms - often create damage that looks scattered or convective on a map. One neighborhood be severely damaged while an adjacent neighborhood sits remarkably untouched. Displaced residents wait in shelters or stay with family and friends, but their luckier neighbors see their economic prospects suffer as well. A community cannot fully recover until its residents return to their homes, making it whole again. 

"Housing really is the most immediate concern after a hurricane," said Kermit Billups of Greenline Ventures.

While programs like LIHTC are very effective in financing large-scale rental developments, federal affordable housing policy does leave some gaps, and Greenline Ventures saw an opportunity to use the NMTC's flexibility to meet scattered, single-family housing needs and put people back to work. Greenline provided $700,000 in NMTC financing to a small, local developer to support 13 new affordable single-family houses in Louisiana.

To expedite the project, Greenline coordinated with local housing agencies and helped first-time developers understand the scope and desired outcomes of the rebuilding effort while helping them navigate red tape. They engaged local, minority and woman-owned contractors for most of the work, and eighty-five percent of the workers hired for construction were local. To finance the project, Greenline provided a clustered site redevelopment loan product that was not available on the conventional market and only possible thanks to subsidy from the NMTC.

"We followed the General Patton model of development: GET IT DONE." said Billups. "Housing kits and materials were shipped directly to construction sites so that building could begin as quickly as possible."

The project served as a scalable model for GO-Zone Housing development through public-private partnerships. It also provided the developer with credentials to receive an award for $75 million in FEMA and New Orleans funds to build similar housing in the region. Ultimately, they financed 450 units in New Orleans, Baton Rouge, and Lake Charles, creating an additional 540 construction jobs.

Before and After

Learn about other disaster recovery efforts supported by the NMTC

NMTC Supporting Culinary Entrepreneurs

Kitchen incubators provide shared space for local chefs to grow their restaurants or turn a small food truck business into a bricks and mortar establishment. Below is a collection of stories about how the NMTC has supported culinary entrepreneurs.

Amped Kitchens cooking up first Chicago location

The LA-based “apartment building for food companies” bought a Galewood industrial complex as first facility outside California.

From left: Amped Kitchens’ Brian Albert and Mott Smith

A Los Angeles company that rents dedicated food-production spaces to tenants ranging from startups to national companies is opening on Chicago’s Northwest Side, its first location outside California, thanks in part to financing from the New Markets Tax Credit.

LA Prep Commercial Kitchen Incubator

NMTCs Serve Up New Space for Food Business Entrepreneurs

Ivy Tech Culinary School

R House: Baltimore's Emerging Chefs

BOOM! Health Project Includes Workforce Training Cafe

Enterprise Community Partners and Chase financed a mixed-use project in the Bronx that includes, among other things, a café called BOOM!Café, which will double as a community space and workforce training center on the ground floor. BOOM is working with Catalyst Kitchen, an incubator of food service social enterprises based in Seattle, to establish a training program and business model for the café.

Learn more about the project.

FareStart Culinary Academy Puts Homeless on Path to Success

The Findlay Kitchen, an Incubator in Cincinnati

Recent NMTC projects in Akron, OH and Bellows Falls, VT

Chroma Technology, Bellows Falls, VT: The growth of Chroma Technology, a leading manufacturer of optical filters and related products, has far exceed their existing production capacity. Financing from MHIC will increase the company’s manufacturing and research and development facility by over 150%. The prosperity of this company is extraordinarily vital to this very low-income community because it is employee-owned and, with profit sharing, most of the employees can earn approximately $100,000/year. This expansion project will result in 28 new hires within the next 5 years. Akron Community Revitalization Fund: Akron, OH The Akron Community Revitalization Loan Fund, which will be overseen by the Development Finance Authority of Summit County (DFA), is designed to provide small loans to help launch projects — everything from rehabbing buildings to opening new businesses — in distressed census tracts. The DFA created the fund with support from a NMTC allocation.  Learn more.

New Report: NMTC: At Work in Communities Across America

Today, the NMTC Coalition is excited to release a new report showcasing NMTC success stories from every state and the District of Columbia. These profiles from each state show the flexibility of the NMTC and demonstrate its ability to drive and leverage capital in investment-starved communities, creating economic opportunities and jobs in our country’s poorest rural communities and urban neighborhoods. Every four years, the Coalition releases this report, which serves as an important tool for educating new Administrations and new Members of Congress. The 2016 edition of the NMTC at Work report features 89 NMTC projects, ranging from rural to urban, from grocery stores, health care centers and community centers to manufacturing businesses and schools, as well as many other important projects identified by community leaders. These profiles from each state show the flexibility of the NMTC and demonstrate its ability to drive and leverage capital in investment-starved communities, creating economic opportunities and jobs in our country’s poorest rural communities and urban neighborhoods. The report includes NMTC success stories and maps of NMTC activity.

Sen. Roberts visits Children’s Campus of KC to discuss strategies that help close the achievement gap

Local health and education center highlights importance of high-quality facilities to the success of at-risk children

KANSAS CITY, Kan., Aug. 8, 2016 — When Sen. Pat Roberts sat down with preschoolers today at the Children’s Campus of Kansas City (CCKC), he was focused on much more than story time and snacks. The senior senator from Kansas dropped in on the first day of school to learn more about CCKC’s model for closing the achievement gap among low-income kids—starting with a unique community facility designed specifically for young learners. CCKC is home to three non-profit organizations that provide a continuum of services focused on the health and wellness of children from birth to age five. That includes nearly 150 preschool students participating in CCKC’s Educare program, which lays a strong educational foundation for children who might otherwise be derailed by the deep and lasting implications of poverty.
Sen. Pat Roberts (R-KS) reads to preschoolers at Children's Campus of Kansas City (CCKC), where nonprofits offer a continuum of education, family and health services focused on kids from birth to age five. Sen. Roberts met with CCKC staff to learn why facilities tailored to young learners are so important to their future, and why programs like the federal New Markets Tax Credit are so critical to building them.
Sen. Pat Roberts (R-KS) reads to preschoolers at Children’s Campus of Kansas City (CCKC), where nonprofits offer a continuum of education, family and health services focused on kids from birth to age five. Sen. Roberts met with CCKC staff to learn why facilities tailored to young learners are so important to their future, and why programs like the federal New Markets Tax Credit are so critical to building them.
“I am pleased to visit Children’s Campus to see firsthand a local partnership trying new methods to teach and nurture low-income children in a facility specifically designed for their needs,” Sen. Roberts said. “These children are the most vulnerable in our society, and it is very encouraging to see a community harness the resources it has, like the University of Kansas Medical Center, LISC, Wyandotte County and other organizations by working together to meet the educational and developmental needs of at-risk children. Reading to these kids is a great way to start the day, and I hope they are off to a great start for the year.” Funding gaps almost derailed CCKC before the first brick was laid—even though expanding access to quality early education programs and services has been a local priority, notes Heather Schrotberger, director of Project Eagle, the University of Kansas Medical Center program that operates Educare Kansas City. “We know that quality early childhood education can make all the difference in a child’s future,” she said. “It is a powerful anti-poverty strategy. Young children flourish when we create early education settings designed for their needs, with classrooms and teachers that keep them safe and engaged. That’s why CCKC exists.” In other words, space matters. According to a report published by the National Institute for Early Education Research (NIEER), a facility’s layout, size, materials and design features can improve program quality and contribute positively to child development, while a poorly adapted and overcrowded environment undermines it. The physical configuration of early care and education spaces directly affect adult/child interaction and influence how children grow and learn. But financing high-quality, appropriate space for young learners – much less space that can also accommodate other family services, as is the case with CCKC – is not easy. Early fundraising and philanthropic support enabled the project to secure a conventional bank loan, but CCKC still faced a significant funding gap. The project utilized the federal New Markets Tax Credit (NMTC) program, which is designed to encourage private-sector investment in underserved communities, to fill that critical shortfall. CCKC highlights an important intersection between federal policy and local impact, said Matt Josephs, LISC senior vice president of policy, who joined Sen. Roberts on the CCKC tour. “The corner of 5th St. and Minnesota Ave. might seem like it’s a long way from Washington, but federal programs like the New Markets Tax Credit have a significant local impact,” said Josephs, who also serves on the board of the New Markets Tax Credit Coalition. “CCKC is illustrative of how NMTCs can be used to deliver private sector investments into distressed neighborhoods, helping to not only provide critical services to community residents, but also to revitalize the neighborhoods and fuel further growth.” Stephen Samuels, executive director with LISC’s Kansas City program office, notes that these kinds of investments also have significant economic benefits for the city at large. LISC helped finance CCKC as part of its comprehensive efforts to revitalize disadvantaged neighborhoods. “CCKC allows parents to go to work without worrying if their children are in a safe, nurturing place,” he said. “It has created more than 200 jobs in a community with high poverty and unemployment rates. And, it has transformed a vacant commercial corner into an active, vibrant space,” he explained. “By connecting so many critical local partners and institutions, this facility is not only an imperative for our children; it is a significant, lasting asset for our community.” Photo Gallery: About CCKC CCKC is a collaborative partnership aimed at improving outcomes for young children and their families. Three agencies representing the fields of early childhood education, parenting education, family support, health, education and research have co-located on the campus and collectively built a system of services that address the multiple needs of young children and their families, paying special attention to addressing the educational achievement gaps between low-income children and their higher income counterparts. These agencies are: Juniper Gardens Children’s Project – Juniper Gardens Children’s Project, of the University of Kansas, works to improve children’s developmental experiences and their academic and social achievements through research. Project Eagle – Project Eagle, of the University of Kansas Medical Center, directs multiple programs on site, including an Early Head Start program (Educare of Kansas City, serving 150 students), a Maternal Infant Early Childhood Home Visiting Program, and the Connections centralized screening and referral system for Wyandotte County. The Family Conservancy – The Family Conservancy provides mental health assessments and services, parenting education, crisis intervention, assistance to overcome poverty, and professional development to enhance the quality of early education across the community. About LISC LISC equips struggling communities with the capital, program strategy and know-how to become places where people can thrive. Since 1980, LISC has invested more than $16 billion to build or rehab 348,000 affordable homes and apartments and develop 56 million square feet of retail, community and educational space. For more on the importance of developing early childhood education facilities, read Building Early Childhood Facilities: What States Can Do to Create Supply and Promote Quality, published by NIEER and authored by LISC, or visit http://www.lisc.org/our-initiatives/education/early-childhood-facilities/. About New Markets Tax Credits The New Markets Tax Credit was enacted in 2000 in an effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities. Today due to NMTC, more than $75 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. Since its implementation, Congress has made several last-minute reauthorizations, making it difficult for practitioners and communities to rely on its availability. However, Congress passed a five-year extension of the NMTC in the PATH Act, which was passed in December 2015. Contact:
  • Kay Hawes, associate director of news and media relations, University of Kansas Medical Center, 913-617-8698 (cell) or [email protected]