Opportunity Fund Receives $40 Million New Markets Tax Credit Allocation Benefiting Low-Income CommunitiesPosted on Feb 23, 2018 by Jacqueline Heinrich
Opportunity Fund is pleased to announce it was awarded a new $40 million allocation under the U.S. Treasury Department's New Markets Tax Credit (NMTC) program. Opportunity Fund leverages federal tax credits to invest in high-impact community projects that advance economic well-being across communities. A total of $3.5 billion in NMTC allocations were recently awarded to 73 organizations nationwide through a highly competitive application process.
“With this $40 million allocation, Opportunity Fund will be able to raise $40 million from lenders and investors to fund new commercial, non-residential real estate projects that provide substantial benefits to low-income communities, like health clinics, youth centers, and homeless shelters,” said Jeff Wells, Vice President, New Markets Fund Director.
Opportunity Fund has received a total of ten allocations, totaling $348 million, to support our community investments. In turn, Opportunity Fund has provided financing for 22 projects throughout the Western United States, which have leveraged $254.2 million in capital for nonprofit facilities and Native American projects that have supported more than 5,800 construction and permanent jobs
Last fiscal year, Opportunity Fund’s projects served more than 390,000 unduplicated low-income people, including 280,000 people of color and 158,000 at-risk youth. For example, Gina and her children moved into LA Family Housing after experiencing homelessness when meningitis rendered Gina blind and she couldn’t pay rent. With safe and secure housing, Gina learned new mobility and life skills for future independence. Opportunity Fund facilitated $28.4 million in financing to help LA Family Housing build an 80,000 square foot, multi-service facility that hosts housing and supportive services all on site.
In 2017, Opportunity Fund supported the following projects:
St. John’s Well Child & Family Center
In South Los Angeles, Opportunity Fund’s New Markets allocation supported the St. John’s Well Child & Family Center, which, when completed, will provide quality and accessible patient-centered comprehensive health services for more than 7300 low-income individuals and families from the adjacent Rolland Curtis Gardens affordable housing project and the surrounding low-income community.
Opportunity Fund provided $16.1 million for the construction of a non-profit primary and preventive health care facility for the farmworkers and low-income service workers of Napa and Sonoma counties.
Logan Heights Family Health Counseling Center
Opportunity Fund provided $8 million in financing for the newly-opened Logan Heights Family Health Counseling Center which offers a comprehensive range of behavioral health services to more than 7300 individuals and families of Barrio Logan, a low-income area south of downtown San Diego.
The recently enacted Tax Cuts and Jobs Act preserved funding for the NMTC program through 2019. This most recent $40 million allocation ensures that we will continue to impact low-income communities through critical investments in community facilities in the coming years. Opportunity Fund is advocating for the NMTC program to be funded on a permanent basis.
Opportunity Fund is currently lining up prospective projects for 2019 and beyond. To learn more about our New Markets Tax Credit program and the projects we have been a part of, contact Jeff Wells: firstname.lastname@example.org.