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NDC ACT LAUNCHES STATE BY STATE ECONOMIC DEVELOPMENT AWARENESS CAMPAIGN STARTING WITH SOUTH CAROLINA

As we all know, the future of federal economic development programs is under serious threat as Congress targets them in their tax reform and deficit reduction proposals.  Over the last three decades, federal outlays for programs that support community and regional economic development have fallen by 75 percent as a share of Gross Domestic Product.  Now, in addition to this alarming statistic, the potential for Congressional Tax Reform puts Federal tax incentives for community revitalization, such as the Low Income Housing Tax Credit Program (LIHTC), the New Market Tax Credit (NMTC) Program, U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture programs, U.S. Department of Energy, Tax Exempt Bonds and Small Business Administration (SBA) lending programs, at risk.

NDC ACT, Advocating for Communities Together, was created as a Call to Action—a way to generate a dialog among community and economic development organizations across the United States to share the results of our collective work and to demonstrate to our elected officials the significant contributions of these community development tools to the national and local economies.  Together we can build awareness of the collective impact of these programs and advocate continued Congressional support for them.

As part of a focused effort, NDC ACT will select a specific state and profile the impact of federally funded economic development programs within that state and then share that impact with the states senators and congressmen and women.  The first states we have selected are states where the congressional leadership can have a great impact on preserving these programs.  In profiling a state, our goal is to focus on projects from Community Development Corporations, municipalities, Community Development Financial Institutions, NMTC Community Development Entities, housing organizations, LIHTC syndicators and local non-profits, and share these project with the state’s U.S. Senators and U.S. House of Representatives.

The month of April will highlight economic development projects completed with federal resources in South Carolina.  By using social media to communicate directly with Senator Graham and Senator Scott and South Carolina’s representatives in Congress, we will show the impact of federal economic development resources in their state.  Over the course of a month we hope to create a very clear image of the scale of impact South Carolina’s economic development community has had in their state.

We need your help!  Tell us about your projects: Email us, Connect with us on Twitter  and use #NDCACT and like us on Facebook.  We will re-post and re-tweet your story and do our best to communicate the impact of your work in South Carolina and across the Nation.

GROW AMERICA FUND = MONEY FOR SALINAS BUSINESSES

The National Development Council’s Grow America Fund is hard at work creating opportunity for small businesses in Salinas Valley, CA.  Check out the April Issue of The Salinas Valley Chamber of Commerce Business Journal to learn more about the Grow Salinas Fund- a partnership between GAF and the City of Salinas which created a $2.2 million revolving loan fund to assist eligible small businesses.

 

April Issue of Salinas Business Journal

3,267 Organizations Tell Congress To Grow The Pie

In a previous Blog Post we asked you to help our partners @ National Alliance of Community Economic Development Association by signing on to urge leaders of the House and Senate Appropriations Committees to allocate the highest possible levels of funding to the Transportation, Housing and Urban Development, and Related Agencies (THUD) Subcommittees.

3,267 organizations signed on in support- a full re-cap of the letter can be found on the NACEDA Blog . NACEDA and our DC coalition partners are sharing the letter with Members of Congress. We suggest you do the same. You worked hard to meet our 3,000 signer goal. Let us make sure it is seen and read.

City of Salinas and NDC’s Grow America Fund Close Their First Loan

Viajes America Inc. is the first recipient of a loan from the Grow Salinas Fund, a small business lending program that provides low-interest capital to successful small businesses in Salinas that are unable to attain conventional bank lending or are held back by higher interest rates.  The Grow Salinas loan fund is a partnership between the City of Salinas and the National Development Council’s small business lending arm, Grow America Fund.

Read the Full Release HERE! http://www.ci.salinas.ca.us/PressReleases/2014/20140317_NDCGrowSalinasFundClosesFirstLoan.pdf

NDC Announces Dates for NDC Academy 2015

The National Development Council is pleased to announce that the dates of the NDC Academy 2015 will be May 12-14, 2015 in Washington, DC.

 

With over 400 community development practitioners in attendance, NDC Academy 2013 was our best yet, and 2015 promises to be better!  Development finance programs are under attack in Washington and NDC Academy 2015 will bring together state and local officials, public and private policy makers and elected officials to better understand, utilize and advocate for critical tools like New Markets Tax Credits, Low-Income Housing Tax Credits, HUD 108 loan guarantees and more. NDC Academy 2015 will focus on how these program not only produce benefits to the communities where they are employed, but ultimately, by creating quality, long-lasting jobs, produce enough local, state and federal tax revenue to more than offset their costs.

 

The NDC Academy’s unique structure allows for a synergistic flow between attendees and government officials. We combine in-depth training for practitioners, indispensable networking events and a forum for attendees to have a voice on Capitol Hill. And again in 2015, our Project Awards Showcase will celebrate the important and innovative community development projects from our colleagues across the country, and introduce Academy participants to the deal-doers themselves.

 

Check back this summer for more information on the NDC Academy 2015. If you are interested in becoming a NDC Academy 2015 sponsor, please contact Brittani Coy at bcoy@nationaldevelopmentcouncil.org or 859-578-4850.

 

NDC CEF Project Residence at Washington Street TO CELEBRATE RIBBON CUTTING

NDC Corporate Equity Fund is proud to announce the Grand Opening and Ribbon Cutting of The Residents at Washington Street in Kokomo, IN! Find more information about the event here.

About The Residents at Washington Street: In Partnership with Miller Valentine, Saint Mary Development Corporation, Area Five Agency on Aging and the Corporate Equity Fund X,  Washington Street Senior Residences brings a new state into the CEF Portfolio. Located in Kokomo, Indiana this senior housing project will make use of low income housing tax credits in a new construction targeted to the senior population in the low- income community. The facility is located in close proximity to community services, and the Kokomo Senior Citizens Center which offers numerous programs for area senior residents.

The Residences at Washington Street E-Vite

Tell Congress to Fully Fund HUD and DOT Programs in Fiscal Year 2015

Our Partners @ National Alliance of Community Economic Development Associations have asked for your HELP!

Sign on HERE

The 2015 budget process is now in high gear. On March 4, President Obama submitted his formal budget request to Congress. Secretary Donovan unveiled HUD’s proposed FY 2015 budget. Now, it’s up to the House and Senate Committees on Appropriations to decide how much funding each of the 12 appropriations subcommittees will receive in Fiscal Year 2015.

This is a key opportunity to influence funding levels for the Department of Housing and Urban Development and the Department of Transportation. Please add your organization’s name to a sign-on letter that was very successful last year. With Rep. Frelinghuysen on the Appropriations Committee, having a good showing from New Jersey is particularly important.

Sign on to urge leaders of the House and Senate Appropriations Committees to allocate the highest possible levels of funding to the Transportation, Housing and Urban Development, and Related Agencies (THUD) Subcommittees, so they have the resources they need to fully fund all housing programs. Read the full letter.

Last year, more than 2,400 organizations signed the letter. Senator Susan Collins (R-ME) cited the letter and waved it in her hand when discussing funding allocations.

Sign on now!

Encourage your members and partners to sign on too. Reach out to transportation advocates in your community. Members of Congress expressed a particular interest in Chambers of Commerce last year. If you work with a local chamber or downtown business council that cares about Americans having a stable home and access to transportation and opportunity, please ask them to sign the letter.

The deadline to sign on is March 12. Let’s get more than 3,000 organizations to sign on to preserve housing and transportation funding!

NEW MARKET TAX CREDIT EQUITY CRITICAL IN COMPLETION OF WITTE MUSEUM EXPANSION

The Witte Museum in San Antonio, TX will celebrate the completion and Grand Opening of the East Wing of B. Naylor Morton Research and Collections Center with a private event this evening. Beginning March 3rd the East Wing will be open to the public Monday – Friday, 10am – 5pm.

The Witte Museum promotes lifelong learning through innovative exhibitions, programs and collections in natural history, science and South Texas heritage. NMTC financing allowed the completion of the first phase of their redevelopment project, the Witte Research Center. The Center provides a permanent home for the collection stories, programs and exhibits related to South Texas. The redevelopment will expand Witte’s already significant impact on the community by increasing display and program activity areas that are designated to engage participants in the social, cultural and economic history of the area. The new Center presents a significant, cutting-edge museum experience for visitors through a visible storage approach to viewing artifacts and places the Witte Museum at the forefront of innovative museums nationally. Using glass walled galleries and special transparent cabinetry, the Witte’s visible storage approach will transform how a visitor engages with the Witte’s collection.

NDC’s $8 million Qualified Equity Investment in the $11 million project was combined with financing and NMTC allocation from Chase Bank, resulting in the projected creation of 20 construction jobs and 22 permanent jobs.

 

NDC HAS SIGNED ON IN SUPPORT, HAVE YOU?

Sign ON  to support increased HUD funding in Fiscal Year 2015!

The House and Senate Committees on Appropriations will soon decide how much funding each of the 12 appropriations subcommittees will receive in FY15. It is critical that the Transportation, Housing and Urban Development, and Related Agencies (THUD) Subcommittees in the House and Senate receive allocations that are at the highest possible levels, so they have the resources they need to fully fund all housing programs. President Obama will submit his preliminary FY 2015 budget on March 4, which will included the president’s key proposals as well as top-line discretionary spending levels.

Join our friends at NACEDA and their effort by signing a letter to House and Senate Appropriations leaders urging the highest possible allocations!

Here’s how you can take action to support HUD funding:

  • Sign on for your organization.
  • Share the letter with your members and partners and encourage them to sign on. Members of Congress expressed a particular interest in Chambers of Commerce last year. If you work with a chamber or downtown business council, please ask them to sign on.

The deadline to sign the letter is March 12.

NDC Represented at Manufacturing Community Roundtable In Lowell, MA

NDC’s Dan Marsh will speak today on the Key Solutions Panel at the Manufacturing Community Roundtable in Lowell, MA. The panel will discuss potential resources available to address key challenges in the region, Dan will be joined by local and state officials as well as other Non-Profit and For-Profit organizations looking to promote manufacturing growth in Lowell.

The event will explore how to promote manufacturing reuse, primarily in two key areas of the city that are undergoing revitalization―the Hamilton Canal District at the gateway to downtown Lowell, and the Ayer’s City Industrial Park. Revitalization of the Hamilton Canal District will turn 15 acres of vacant and underutilized land into a new and vibrant mixed-use neighborhood. The Ayer’s City Industrial Park will focus on supporting and enhancing existing businesses, attracting new development, creating new jobs, creating attractive links between residences and the district, and enhancing connections to natural resources.

About the Manufacturing Community Roundtable:

The Obama Administration and the U.S. Environmental Protection Agency will partner with the City of Lowell, the State of Massachussetts, and regional economic development leaders, to hold a “Manufacturing Community Roundtable” on February 20. The Lowell Manufacturing Community Roundtable will promote public-private and intergovernmental partnerships focused on revitalization in the Hamilton Canal District and Ayer’s City Industrial Park for a resurgence of manufacturing jobs. It will address key issues including manufacturing site and brownfields reuse, infrastructure, workforce development and job training, and the improvement of community and housing conditions. The meeting will include a focus on implementation of priorities identified as the result of the recent EPA Brownfields Area-wide Planning project spearheaded by the City of Lowell, and other important planning efforts undertaken by the City of Lowell.

The Ayer’s City Industrial Park area was the focus of a 2010 U.S. EPA Brownfields Area-Wide Planning Pilot grant, which enabled the city to prepare a vision for the brownfields in the area that focuses on supporting and enhancing existing businesses, attracting new development, creating new jobs, creating attractive links between residences and the district, and enhancing connections to natural resources. – See more at: http://blogs.lowellsun.com/thecolumn/2014/02/18/manufacturing-to-take-center-stage-in-lowell/#sthash.O3YpJ3eP.d9fZcrto.dpuf

See more about the event from The Lowell Sun:  http://blogs.lowellsun.com/thecolumn/2014/02/18/manufacturing-to-take-center-stage-in-lowell/#sthash.O3YpJ3eP.dpuf

Event Agenda can be found here: http://www.trainex.org/moreinfo/class_attach/6554/Lowell%20Agenda_Inv.%20DFT_FNL.pdf

 

 

How Federal Community Development Investments Affect the Nation’s Bottom Line

National Development Council President Bob Davenport (@BobDavenportNDC) was recently interviewed by NACEDA highlighting the work of NDC ACT . We have found that federal incentives for community revializations produce enough local, state and federal tax revenue to more than offset their cost.

Click here to find the full interview.

Like NDC ACT on Facebook and Follow us on Twitter @NatlDevCouncil using #NDCACT

CONTINENTAL TIRE IN SUMTER SOUTH CAROLINA IS THE LARGEST ECONOMIC DEVELOPMENT AND JOB CREATION INITIATIVE IN AREA HISTORY

NMTC equity used to finance the new facility that will create over 1400 permanent jobs

Sumter, SC- U.S. operations and is the first Continental Tire production plant in the United States in over 40 years. The Sumter Continental Tire plant will create up to 1,600 new full-time jobs with wages 25 percent higher than the median income earned in Sumter. An additional 3,300 indirect full-time positions are projected after the plant is fully operational. The company also intends to offer comprehensive job training for new hires and ongoing training for employees through ReadySC, a division of South Carolina Technical College System. In addition, employees will receive numerous benefits, including medical, vision, and dental insurance; life insurance; paid time off and a 401 (K) retirement plan.

 
New Markets Tax Credit investments of over $58 million helped bridge a financing gap for the $542 million project, allowing plans for the production plant to move forward and begin on time. The one-million-square-foot production facility is located in a severely distressed, low-income community with an unemployment rate exceeding 1.5 times the national average.  National Development Council partnered with Chase New Markets Corporation, Community Reinvestment Fund, USA, People Inc. and UrbanAmerica Advisors to leverage the NMTC equity.

 
“In a county with 11.1 percent unemployment, these jobs couldn’t come at a better time,” said Bob Davenport, president of NDC. “It is also estimated to spur over $670 million in related economic activity in the area. We are profoundly honored to be a part of this project and would like to congratulate all of our partners, Continental Tire and, especially, Sumter, South Carolina.”

 

Continental Tire ranks as one of the most environmentally sensitive tire production facilities in the world. Their production includes incorporating pollution control and monitoring systems, eliminating the use of harmful solvents in the majority of production process and reducing energy consumption through use of innovative heat recovery energy reuse technology.

 

About National Development Council 

Founded in 1969, the National Development Council (NDC) is a national non-profit organization that has evolved into one of the most progressive and innovative community and economic development organizations in the country.  From a seminal role in the earliest days of the community development movement, NDC has grown into one of the most comprehensive providers of financing, development expertise, technical assistance and training for community revitalization efforts throughout the U.S.  www.NationalDevelopmentCouncil.org

National Development Council Will Provide Small Business Lending Through a JP Morgan Chase Foundation Grant

 
Innovative Collaborative Program Gives Leading CDFI Small Business Lenders $7 Million

JPMorgan Chase Foundation is providing a $7 million grant to four leading Community Development Finance Institutions (CDFIs). The grant is part of the foundation’s new CDFI Collaboratives program, a $33 million commitment to help CDFIs and small business lenders build capacity and to jumpstart job creation in low- and moderate-income communities, including New York City Metro, Buffalo and Seattle.

The Small and Medium Enterprises (SME) Collaborative is comprised of Community Reinvestment Fund, USA, (CRF), the National Development Council (NDC), CEI and the Calvert Foundation. The cooperative will work together to lend to small businesses in select areas including Detroit, Milwaukee, Denver, Chicago, Seattle, Buffalo and the New York City Metro area.

NDC will provide small business lending and technical assistance in the New York City Metro, Buffalo, NY and Seattle, WA portion of the Collaboratives program. Loans will be made to existing small businesses for a variety of business needs, with amounts ranging from $200,000 to $2 million. “NDC is a nationally recognized SBA lender, lending to small businesses at an interest rate below 4%,” said Bob Davenport, President of NDC. “The JPMorgan Chase Foundation’s Collaboratives Program will greatly improve our lending capacity in the New York City Metro, Buffalo and Seattle marketplace.”

“The JPMorgan Chase Foundation is proud to help CDFIs build capacity and increase collaboration in order to better support local economic growth, through its new CDFI Collaboratives program. This collaborative of four nonprofit lenders, led by The Community Reinvestment Fund, will support small businesses and create jobs across the U.S.,” said Janis Bowdler, Senior Program Director for Financial Capability and Affordable Housing, JPMorgan Chase Foundation.

During the three year grant period the collaborative will work together in their geographic regions to achieve the following goals:

  •         Provide $81 million in small business financing
  •         Create 5,000 new jobs
  •         Fund 200 small businesses
  •         Attract an additional $10 million in capital from 7,000 everyday investors to support small business in their own communities
  •         Empower local CDFI lending partners to become more efficient small business lenders
  •         Support community lending partners by providing the training, consultation, and resources necessary to effectively coach and advise small businesses
  •         Deploy a joint technology platform to streamline the loan application and underwriting process and empower local CDFI lender partners to become more efficient  small business lenders.

About the JPMorgan Chase Foundation
The JPMorgan Chase Foundation is the charitable arm of JPMorgan Chase & Co. a leading global financial services firm with assets of $2.4 trillion and operations worldwide. The Foundation focuses on driving economic growth and strengthening communities across the globe, by partnering with local efforts to advance skills-based training, help small businesses, create affordable housing and improve financial capability for underserved people. The Firm and its foundation give approximately $200 million annually to nonprofit organizations around the world and lead volunteer service activities for employees in local communities, utilizing its many resources, including access to capital, strength, global reach and expertise. More information is available at http://www.jpmorganchase.com

About Calvert Foundation
Calvert Foundation empowers investors to empower communities. Through the Community Investment Note, Calvert Foundation enables individuals and institutions to invest in helping low-income communities become healthy and prosperous. Our investors have facilitated the creation of thousands of jobs, classroom seats, affordable homes, and critical services in the U.S. and around the world. Learn more at http://www.calvertfoundation.org.

About National Development Council
Founded in 1969, the National Development Council (NDC) is a national non-profit organization that has evolved into one of the most progressive and innovative community and economic development organizations in the country. From a seminal role in the earliest days of the community development movement, NDC has grown into one of the most comprehensive providers of financing, development expertise, technical assistance and training for community revitalization efforts throughout the U.S.
http://www.NationalDevelopmentCouncil.org

About CEI
CEI, a 501(c)(3) private, nonprofit Community Development Corporation (CDC) and Community Development Financial Institution (CDFI), is among the leading rural finance entities in the Northeast. Founded in 1977, and headquartered in Maine, CEI has provided $1.05 billion in loans and investments, and business and housing counseling services to over 46,040 people, helping to create economically and environmentally healthy communities in New England, upstate New York, and throughout rural America. Learn more by visiting http://www.ceimaine.org.

About CRF
Community Reinvestment Fund, USA (CRF), a nonprofit organization and certified Community Development Financial Institution (CDFI), is a national leader in bringing capital to underserved areas. Formed in 1988, CRF has injected more than $1.5 billion into low-income and economically disadvantaged communities around the country to help stimulate job creation and economic development, provide affordable housing, and support community facilities. CRF is headquartered in Minneapolis, MN. For more information, visit http://www.crfusa.com.

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Riverside County Law Building Breaks Ground

NDC HEDC P3 Logo

Indio, CA – Last week, Riverside County in Southern California broke ground on a brand new LEED Gold designed Law building that is financed using tax-exempt bonds issued by NDC HEDC Public-Private Partnerships.  The building is adjacent to the County’s Larson Justice Center and is a necessary expansion of the Riverside justice complex after the passing of the California assembly bill that realigned the criminal justice services between the State and the counties

The Riverside County Law Building is a 90,363 square foot, three-story office building that will provide office space for the county’s District Attorney, Public Defender, and County Counsel.  The project will also include a 369-space surface parking lot.  A portion of those spaces will be covered with a solar power generation system that has the capacity to provide up to 30% of the building’s anticipated electrical usage.

Through a rigorous RFP Process, the County selected the Bond Issuer, NDC, and the Developer, Trammell Crow, to design, permit and construct the project.  The $44 Million project is expected to complete construction in mid-2015.

Riverside-Drawing

JUST RELEASED: FY14 Budget for the CDFI Fund

The following post was prepared by Mary Childs-Mayer, NDC Director of Government Relations

The CDFI Fund has fared considerably well in the last several rounds of budget negotiations, thankfully.  This is one of the only federal departments to receive a slight increase in budget authority. The details for the Fund’s programs include:

 

  • The FY ’14 omnibus provides $226 million for the CDFI Fund, an increase of $4 million over FY ’13
  • Native American CDFI Initiatives receives $15 million
  • Healthy Food Financing Initiative receives $22 million
  • Bank Enterprise Award receives $18 million
  • Capacity Building receives $1 million expand CDFI investments in underserves areas
  • Bond Guarantee program receives $750,000,000, a decrease of $250,000,000 from FY13
  • CDFI Fund administrative functions receives $24.6 million to support

 

 

 

Just Released: FY 2014 Budget for USDA Rural Housing Service/Rural Utilities Service Programs

The following post was prepared by Mary Childs- Mayer, NDC Director of Government Relations

Perhaps the federal department that took the biggest hit by the Administration, the House and the Senate in the proposed FY14 budgets was the USDA.   Thanks to the National Rural Housing Coalition staffed by Rapoza Associates, the members went to task to speak with members of congress to increase much needed funding for rural housing.  Below is a summary prepared by the NRHC and sent to its members.

 

  • The FY14 conference agreement increases Rural Housing spending by $140 million above the President’s Budget Request.
  • That number includes increases in Section 502 Direct Loans, Section 523 Mutual Self-Help Housing, Section 514/516 Farm Labor Housing, Section 515 Rural Rental Housing, Section 521 Rural Rental Assistance, and Rural Community Development Initiative.
  • Spending for Rural Water/Wastewater is also above the President’s Budget Request by $45 million.
  • As the table below indicates, the total available for Section 521 Rural Rental Assistance is $1.11 billion, which is $97 million above the President’s Budget Request and is higher than amount recommended in the House or Senate bill. This amount fully funds all expiring agreements in FY14.
  • The other achievement accomplished by the NRHC was effectively safeguarding the rural definition for fiscal year 2014 and prevents USDA from using any funds to implement changes to the definition. As a result, all communities that are currently eligible for Rural Housing programs will remain eligible through the end of the fiscal year.
  • The bill also includes an important provision impacting the Section 502 Direct Loan Intermediary Pilot program. Section 735 of the Omnibus bill requires that USDA expand the pilot program to include 5 additional Intermediaries within 90 days (around mid-April). The purpose of adding these intermediaries is to extend the pilot program to areas not currently served by existing intermediaries. The Appropriations bill also includes a $5 million set-aside of Section 502 Direct Loans for borrowers building their own homes under the Self-Help Housing program. This provision was also included in the FY13 budget, and was carried forward.

JUST RELEASED: Fiscal Year 2014 HUD Budget Summary

The following post was prepared by Mary Childs-Mayer, NDC Director of Government Relations.

As many of you know, the last few months for fiscal year 2014 budget negotiations have been frustrating to say the least. Remember the government shutdown for two and a half weeks in October?  I’m happy to share that this afternoon the House of Representatives voted and approved a $1 trillion omnibus spending bill sent over by the Senate that funds the government for the rest of fiscal 2014, and will let Congress avoid the risk of another ‘shutdown’ until the end of September.   This bill will be sent on to the President to sign into law this weekend.
We saw large cuts in fiscal year 2013 for programs dedicated to housing and community development investments in communities throughout the United State due to a variety of factors including sequestration.  Several of the HUD programs—including CDBG, HOME Investment Partnership program and SHOP—did somewhat better in the FY14 Appropriations bill than in the President’s Budget Request, but there is still significant improvement needed going forward.  Below you will find the details of the FY14 budget and comments on the status of several programs:

  • The total Community Development Fund is funded at $3.03 billion, down from the FY 2013 level of $3.078 billion after sequestration.
  • The CDBG formula funding is $82 million more than the FY13 rate ($2.95 billion) and $250 million more than the President’s Budget Request ($2.78 billion).
  • The Section 108 CDBG Loan program level was cut from $240 million to $150 million, and its Budget Authority was cut from $5.9 million in FY13 to $3 million. As you may recall, the President, House, and Senate sought to increase the program levels to $500 million and replace its Budget Authority with a user fee though HUD has not yet issued a rule outlining a fee structure for the program.
  • HOME Investment Partnerships program received $1 billion, an increase over the current post-sequestration level of $948 million.
  • Choice Neighborhoods funding is reduced from the current post-sequestration level of $114 million to $90 million under the omnibus bill, with at least $55 million guaranteed for PHAs.
  • Homeless assistance grant funding receives a modest increase under the agreement.
  • SHOP received $50 million, up from the President’s proposal of $10 million.
  • Section 8 Tenant-Based Rental Assistance is set to receive a $1 billion boost for the renewal of existing vouchers, and administrative fee funding will increase by approximately $195 million. Initial estimates indicate that this increase may raise the administrative fee from 69 percent to 75 percent.
  •  Section 8 Project-Based Rental Assistance is funded at $9.9 billion, an increase over the current $8.9 billion funding level.
  •  The Section 202 Housing for the Elderly program saw a modest increase from $375 million in FY13 to $383 million in FY14.

 

 

Healthy Futures Fund Finances First Community Health Center to Help Rural Washington Health System Expand to 70,000 Patient Visits Annually: Investment supported by Morgan Stanley, NDC, The Kresge Foundation and LISC

CHICAGO (Jan. 16, 2014)—The Healthy Futures Fund—a first-of-its-kind collaboration to support accessible health care and affordable housing in low-income communities—has made its initial investment in a Federally Qualified Health Center (FQHC), helping finance the construction of a new clinic in the underserved rural community of Omak, Wash.

The facility is being developed by Family Health Centers (FHC), a county-wide health system offering primary medical, dental and pharmacy services, in north-central Washington.  FHC is a critical resource in this area, serving more than 30 percent of residents in a county where poverty is nearly double the state rate.  The new clinic replaces FHC’s outdated health center in the neighboring town of Okanogan.  It will quadruple space for medical services and double the size of the existing pharmacy, helping the FHC system expand to more than 70,000 patient visits per year.

“FHC’s mission is to provide access to high-quality, affordable health care services regardless of race, income, or insurance status, and this investment will help to strengthen the area’s health care delivery system,” said Mike Hassing, CEO. “By locating our new clinic next door to Confluence Health Omak Clinic and Okanogan Behavioral Healthcare, we’re creating a ‘health care campus’ with a full range of services located immediately next to each other. “

The Healthy Futures Fund, co-founded by LISC, The Kresge Foundation and Morgan Stanley, invests in projects that finance new multifamily housing with on-site health services, new community health centers that serve nearby low-income housing residents, and supportive services that help connect the two.  In this case, the Fund is tapping more than $6.6 million in New Markets Tax Credits (NMTCs) from the National Development Council (NDC), with capital provided by Morgan Stanley and The Kresge Foundation.  All three are partners in the fund’s $100 million initial round of project investments and long-time supporters of efforts to revitalize low-income communities.

“In an area where a high percentage of the population lives below the poverty level, the new construction of the Family Health Center in Omak will substantially improve patients’ access to medical care,” said Robert W. Davenport, President of National Development Council. “NDC is proud to be a partner in this Healthy Futures Fund project that will bring jobs and health care to an area in need.”

“Reliable health care is a critical ingredient for long-term economic prosperity,” said Audrey Choi, Head of Global Sustainable Finance at Morgan Stanley.  “The Healthy Futures Fund is driving capital to areas that are in serious need of accessible, quality health care facilities.  The Fund’s investments to date, spanning three states, show that private capital, philanthropy and public programs can be harnessed in powerful ways to increase and expand the availability of vital services.”

“For Kresge, investing in the Fund is a way to help reduce health disparities and improve health outcomes,” said Kimberlee Cornett, who directs Kresge’s Social Investment Practice.  “Such investments allow the foundation to expand beyond grant-making and put more of its endowment to work.  We’re using multiple tools all aimed at creating opportunity for people who have faced disadvantage. ”

Already, the Healthy Futures Fund has invested in two affordable housing developments that are incorporating health services for residents, one each in Menominee, Mich., and St. Paul, Minn.  The FHC’s Omak health center is the first of up to eight health center investments that are expected to be made during the course of 2014 to help meet the needs of residents who do not currently have reasonable access to primary care.

“This is an important part of our national strategy to look at community development through a health lens,” said Emily Chen, Program Director for health care financing at the Local Initiatives Support Corporation (LISC), which provided loan capital to help move the project forward. “By expanding access to services for low-income people, we can make a marked difference in their quality of life.”

About Healthy Futures Fund
The Healthy Futures Fund (HFF) is a $100 million fund launched by the Local Initiatives Support Corporation (LISC) in partnership with Morgan Stanley and the Kresge Foundation. It supports new community health centers in disadvantaged neighborhoods, new low-income housing with incorporated health services and a range of social services that link the two to each other so that residents can live better.   The fund is managed by New Markets Support Company (NMSC) a Chicago-based LISC affiliate. For more information, visit www.healthyfuturesfund.org.

About NDC
Since 1969 the National Development Council has worked to create and implement economic and community development strategies that increase the flow of capital to urban and rural communities.  NDC offers a wide range of services, including development assistance, professional training, small-business financing, and debt and equity for residential, commercial, public, and nonprofit facilities. The National Development Council formed NDC HEDC New Markets, Inc. and has invested over $704 million in 81 NMTC projects across the country.  For more information, visit www.nationaldevelopmentcouncil.org

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 43 countries.  Since 2006, Morgan Stanley has committed more than $7.8 billion to strengthen underserved communities.  For further information about Morgan Stanley, please visit www.morganstanley.com.

About The Kresge Foundation
The Kresge Foundation is a $3 billion private, national foundation that works to expand opportunities in America’s cities through grantmaking and investing in arts and culture, education, environment, health, human services and community development efforts in Detroit. In 2012, the Board of Trustees approved 410 awards totaling $130.5 million; $150.3 million was paid out to grantees over the course of the year. For more information, visit kresge.org.

About LISC
LISC combines corporate, government and philanthropic resources to help nonprofit community development corporations revitalize distressed neighborhoods. Since 1980, LISC has invested $12.9 billion to build or rehab 298,300 affordable homes and apartments and develop 49 million square feet of retail, community and educational space. For more, visit www.lisc.org.

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NDCMorgan StanleyKresgeLiscNMTC Support
Contact:
Colleen Mulcahy, for NMSC
312-342-8244 or c.mulcahy@sbcglobal.net

ROSWELL PARK: NMTCs Close Funding Gap on Cancer Center Expansion- Novogradac Journal of Tax Credits January 2014

NDC’s project Roswell Park Cancer Institute was highlighted in the January 2014 issue of the Novogradac Journal of Tax Credits, See full article in link below.

Novogradac Journal of Tax Credits January 2014

NDC’s $8 million Qualified Equity Investment in the $46 million project was combined with financing and NMTC allocation from Chase Bank, Building America CDE and Dudley Ventures, resulting in the projected creation of 200 construction jobs and 340 permanent jobs.

Roswell Park Cancer Institute (RPCI), is America’s first cancer center founded in 1898 by Dr. Roswell Park. The non-profit institute has been providing hospital care to a medically underserved area in Buffalo, NY for over 100 years. With the assistance of the NMTC Program, RPCI will construct a 140,000 square foot Clinical Science Center (CSC) building on its campus. The 11-story CSC building will connect the Main Hospital to a new Research Center and expand the Institute’s Cancer Prevention program space by 100%. Benefits include space for administrative offices previously held in the Main Hospital and space for up to 10,000 additional community mammogram screenings to be performed each year. The institute also plans to work with several area nonprofit and governmental organizations to recruit low-income employees to fill jobs created by the project.

 

 

 

Beyond Housing, Neighborhoods and Jobs: How Federal Economic Development Tools pay back the Government

New York, New York- On December 11th Robert W. Davenport, President of NDC will announce NDC’s commitment to preserving federally funded economic development tools by creating NDC ACT- Advocating Communities Together. NDC ACT will serve as a call to action to preserve federally funded economic development tax programs.

Davenport will present a white paper  that details the benefits of federal economic development programs such as, New Markets Tax Credits, Low Income Housing Tax Credits, and Empowerment zone programs at the Federal Community Development Policy conference hosted by Rapoza Associates at the Monaco Hotel in Washington D.C.

The National Development Councils findings conclude that not only do these programs produce benefits to the communities where they are employed but ultimately, by creating quality, long lasting jobs, they produce enough local, state and federal tax revenue to more than offset the cost of these programs.

For more information about NDC ACT visit http://www.nationaldevelopmentcouncil.org/index.php/site/overview_content/category/work_with_ndc

We will be live-tweeting with the #NDCACT, follow us on Twitter @NatlDevCouncil and join the conversation!

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