The NMTC is a great tool to finance temporary housing shelters and related facilities to combat chronic homelessness around the county.
Blanchet House of Hospitality – Portland, Oregon
In 2011, USBCDC, one of the largest New Markets Tax Credit investors, used the credit to finance a facility for Blanchet House of Hospitality, a social services nonprofit that provides three-meals-per-day, clothing and temporary shelter to the homeless and recovering addicts located in Portland, Oregon. Blanchet House of Hospitality received commercial loans from U.S. Bank, investor equity from USBCDC, grants from the Portland Housing Bureau, and equity from a capital campaign to construct a $13,000,000 facility consisting of a commercial kitchen, dining facilities and transitional shelter and housing space for men with addictions, problems with unemployment or home and family problems. To learn more about Blanchet House of Hospitality and to view photos of the finished product, please visit the Blanchet House website or this article.
Neighborhood Services Organization Bell Building – Detroit, Michigan
Neighborhood Services Organization of Detroit, Michigan used the New Markets Tax Credit and other sources of financing to renovate the historic Bell Building in Detroit in order to provide the NSO with an award-winning building that serves as its headquarters and 155 fully furnished, one-bedroom apartments for formerly chronically homeless adults. The Bell Building also houses a health care clinic and facilities to provide mental health, addiction treatment, nutrition, financial literacy and other services for the needy and chronically homeless. NSO estimates that the facility saves Detroit-area taxpayers more than $5,000,000 annually in costs of treatment for the chronically homeless. The financing combined Low Income Housing Tax Credits, federal and state Historic and Brownfield tax credits, nearly $2,000,000 in NMTC allocation provided by CSH, and other sources of funds to contribute to the rehabilitation of the building. Details about the Bell Building are avaialable on the NSO website.