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Enterprise Leverages $515 Million in New Markets Tax Credit Allocations to Finance Low-Income Community Revitalization

Posted on: Friday, 27 February 2009, 08:58 CST

COLUMBIA, Md., Feb. 27 /PRNewswire/ -- Enterprise Community Investment, Inc. (Enterprise) has utilized all $515 million of its New Markets Tax Credit (NMTC) allocations from the U.S. Treasury Department's Community Development Financial Institutions Fund (CDFI) to help finance real estate projects and business opportunities in low-income communities across the country.

As one of the largest recipients in the NMTC program, Enterprise has used its five rounds of allocations to catalyze more than $3 billion in commercial and mixed-use development in urban centers and rural communities in 18 states and Washington, D.C., resulting in six million square feet of new or rehabilitated real estate, 10,000 permanent jobs and more than 3,500 housing units.

"Enterprise is proud of its work helping to finance developments that create commercial, housing and job opportunities in distressed neighborhoods, and importantly, offer essential services to vulnerable populations," said Joe Wesolowski, senior vice president, Structured Finance, Enterprise Community Investment, Inc. "Our 2008 New Markets Tax Credit allocation was used to finance nine developments, seven of which are environmentally sustainable and extend our Green Communities(R) affordable housing initiative into commercial and mixed-use properties in low-income communities."

2008 additions to Enterprise's NMTC portfolio include:

• Miller's Court in Baltimore, Md., where a $9.4 million NMTC and historic tax credit investment will help redevelop a former tin box manufacturing plant into affordable housing targeted toward new teachers, retail space and offices for nonprofit organizations focused on education. Miller's Court is being developed to the U.S. Green Building Council LEED Silver standards by Seawall Development. U.S. Bancorp Community Development Corporation is the tax credit investor in Enterprise's community development entity (CDE) and SunTrust Community Capital, LLC is the tax credit investor through its CDE. SunTrust Bank is the senior leverage lender to the entire project.
• The expansion of the YWCA of Salt Lake City, Utah, in which $15 million in NMTC financing will help create a new shelter and residence for women and children who have experienced domestic violence. The new buildings will increase the YWCA's program and outreach capacity and in addition will be built to U.S. Green Building Council LEED Silver standards for sustainability. JPMorgan Chase Bank, N.A. is the NMTC investor and also provided the YWCA with a line of credit facility for the project.
• The CASA Multicultural Center in Langley Park, Md., which has received $7.9 million in NMTC financing from Enterprise, will help CASA de Maryland, an advocacy organization serving immigrants, redevelop the historic 84-year-old McCormick-Goodhart Mansion into new self-help program space. CASA provides educational and vocational services to thousands of local immigrants and will share its space with four other nonprofit organizations. The historic rehab will create operating and sustainable design efficiencies by building to the U.S. Green Building Council LEED Gold standards. Bank of America and Bank of America CDE is the tax credit investor through both Enterprise and its CDE and, in addition, is the project's bridge lender.

Over the last five years, Enterprise has deployed an average of $103 million per year of its NMTC allocation. In addition, Enterprise has recently launched a consulting services practice to offer its NMTC expertise to other industry participants. Enterprise works with investors and other CDEs to select NMTC investment opportunities, and with developers and sponsors to source much needed NMTC allocations and capital. Enterprise's consulting services also include compliance and investment fund management.

"Only because of New Market Tax Credits were we able to move Miller's Court forward. As a result, more than half of the apartments have been committed to by teachers at the city school system and 90 percent of the office space has been pre-leased to the nonprofits that are underpinning the success of the school system and health and human service needs of Baltimore's residents," said Thibault Manekin, founding partner, Seawall Development Company.

The NMTC program, enacted into law by the Community Renewal Tax Relief Act of 2000, was created to attract private capital investment into the nation's low-income communities to help finance community development projects, stimulate economic growth and create jobs. Considered an innovative financing tool for community development and revitalization, the NMTC program has been extended through 2009.

Enterprise Community Investment, Inc. is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. Enterprise leverages low-income housing, new markets and historic rehabilitation tax credits, short and long-term debt, and development services to capitalize projects that make a catalytic difference in communities. Enterprise has privately raised $9.6 billion to finance more than 255,000 affordable rental and for-sale homes, create vital communities and help transform the lives of low-income Americans, particularly those at the lowest end of the economic scale. Currently, Enterprise is investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.com to learn more about Enterprise's efforts to build communities and opportunity.

SOURCE Enterprise Community Investment, Inc.

Source: PR Newswire

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