Transforming Healthcare Access: How New Markets Tax Credits Powered Ampla Health’s Expansion
The New Markets Tax Credit (NMTC) program played a pivotal role bringing essential services to Yuba City, CA improving access to critical services and fostering community development. Central States Development Partners, Inc. (Central States) allocated $15 million in federal NMTC allocation, along with additional support from other non-affiliated CDEs, financed the construction and equipping of a Federally Qualified Health Center (FQHC) in Yuba City, California. Located in a low-income community where the median family income is 59.5%, this project responded to an overwhelming demand for medical services.
Before Ampla Health, local residents faced up to six-week wait times for essential healthcare services, a clear indication of the gap in accessible providers. Now, with the facility up and running, wait times have been cut to just six days, dramatically improving access to healthcare for the underserved community.
Project Overview:
- Total Project Cost: $36.4 million
- Central States Development Partner’s Inc, NMTC Allocation: $15 million
- Co-CDEs: Clearinghouse CDFI, California Statewide Communities Development Corporation
- Investor: US Bank
The new FQHC provides comprehensive services, including:
- Primary medical care
- Dental care
- Behavioral health
- Pediatrics
- Chiropractic services
- Specialty care
The facility serves 36,904 patients annually, with 90% of patients classified as low-income persons (low-income peoples) and 70% as residents of low-income communities (LICRs).
The project aligns with the Sutter County Community Health Assessment 2022, which identified a critical need to increase healthcare providers in low-income areas, particularly for communities. By providing access to specialized healthcare services, the center helps combat high rates of chronic diseases and bridges the healthcare gap that previously existed.
The importance of NMTC investments cannot be overstated in making projects like this a reality. Ampla Health, a nonprofit organization, already maxing out its equity and traditional debt capabilities, required the NMTC to close the gap necessary and allowed the project to move forward with critical upfront capital, offering below-market interest rates and flexible lending features to ensure the project’s financial sustainability.
The Power of New Markets Tax Credits
Ampla Health’s success underscores the immense value of NMTCs in fostering economic growth and improving access to vital services in underserved areas. Without this investment, the Yuba City FQHC would not have been able to provide timely, comprehensive care to thousands of low-income individuals and families.
By leveraging NMTCs, Central States played a pivotal part in helping create a healthcare facility that will continue to serve as a cornerstone for the Yuba City community, improving lives and meeting critical healthcare needs for years to come.
For more information, visit: https://www.economicgrowthcorporation.com/central-states-development-partners-inc.html.
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