Opportunity Fund Receives $40 Million New Markets Tax Credit Allocation and Expands Across the Western U.S.Posted on May 23, 2019 by Chris Huang
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. The organization will also expand its NMTC Service Area from California to an additional 12 states across the Western portion of the country. Opportunity Fund leverages federal tax credits to invest in high-impact community projects that advance economic well-being across communities. Out of a total of 214 applicants, $3.5 billion in NMTC allocations were 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 Chris Huang, Director, New Markets Tax Credits.
The CDFI Fund has granted Opportunity Fund permission to expand to the entire Western portion of the U.S., dramatically increasing our ability to impact the lives of even more families. In addition to California, future investments will be evaluated in Oregon, Washington, Nevada, New Mexico, Arizona, Utah, Colorado, Wyoming, Idaho, Montana, Texas, and Hawaii.
Opportunity Fund has received a total of eleven allocations, totaling $388 million, to support our community investments. In turn, Opportunity Fund has provided financing for 27 projects throughout the Western United States, which have leveraged $331 million in capital for nonprofit facilities and Native American projects that have supported more than 6,200 construction and permanent jobs.
Last fiscal year, Opportunity Fund’s projects served more than 777,000 unique individuals, which includes 397,000 low-income people and 166,000 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 2018, Opportunity Fund supported the following projects:
In Little Tokyo, Los Angeles, Opportunity Fund’s NMTC allocation supported the construction of the Terasaki Budokan which, when completed, will be a 61,000 square foot multi-purpose community facility that will include a gymnasium, community room, and outdoor green space for low-income youth, families, and seniors. The facility is projected to serve 10,000 unique individuals annually and support 152 construction and full-time equivalent jobs in an area that has a poverty rate of 31%.
Opportunity Fund provided $15.9 million in financing to the Yurok Tribe for the purchase of 4,420 acres that is part of the Tribe’s ancestral land. This is the third tranche of a $40.95 million project that is focused on sustainable forestry (including a carbon sequestration project), fisheries habitat restoration, and ecosystem services that will serve 5,000 unique individuals annually and support 685 full-time equivalent and construction jobs, in an area where the poverty rate is 33% and unemployment is 31%.
Opportunity Fund provided $13.6 million in financing to Compass Family Services, San Francisco’s largest provider of support services to homeless families, to facilitate the rehabilitation of the 18,000 square foot building that houses the mental health services and administrative offices of the organization. The programs housed by this facility will combine to help an estimated 3,700 unique families and children each year to achieve housing stability, economic self-sufficiency, and family well-being.
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. Unfortunately, the recently enacted Tax Cuts and Jobs Act that authorizes NMTC allocations expires this year. 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 Credits program and the projects we have been a part of, click here.