This is a new feature of the Ballard Spahr Housing Plus blog. We’d like to feature housing projects around the country that use the NMTC for a piece of the finance strategy. This installment finds us in Moss Point, Mississippi.
Hope Enterprise Corporation and Hope Credit Union (HOPE) – an affiliate of NeighborWorks – and Habitat for Humanity of the Mississippi Gulf Coast (Habitat) recently announced a partnership to build 41 affordable homes for low-income families in Moss Point, Mississippi. The announcement was made at the construction site of the home of Ms. Ednearl Epps, a formerly homeless retiree, whose dream to own a home became possible thanks to this project and the creative use of New Markets Tax Credits. Bill Bynum, the CEO of HOPE, praised NeighborWorks for its investments that “positioned HOPE to help more than 10,000 people rebuild their homes and businesses.” The homes are expected to be built by the fall of 2014.The project is supported by $5,000,000 in New Markets Tax Credits, which are to be purchased by Capital One.
This is not the first time Hope and Habitat have partnered to create affordable homes using New Markets Tax Credits. As Bill Bynum, the CEO of HOPE, said, “New Markets Tax Credits have proven to be a critical recourse for our organization in meeting community needs and revitalizing neighborhoods historically underserved.”
HOPE is a community development financial institution, community developer and policy center that provides financial services to low income communities and individuals. It serves various groups throughout the South and is one of the affiliates of NeighborWorks, a network that helps individuals and families with affordable housing and counseling.
The New Markets Tax Credit program was created by Congress and is managed by the CDFI Fund of the Treasury Department to increase investments in operating businesses and real estate projects in targeted, low income areas around the country. Since its establishment in 2000, the program has generated $40 billion in tax credit authority for loans for business and real estate projects.
Have a question about the New Markets Tax Credit program? Ballard Spahr has a dynamic practice representing CDEs, QALICBs, investors, and syndicators. Give us a call or look up any of our professionals.
Join us next time for “Get to Know a NMTC Housing Deal.”