Green Health Care Facility New Markets Allocation Financing Bronx Project
By Caitlin Jones
3 min read
Tax Credit Advisor, February 2010: Enterprise Community Investment, Inc., a national leader in affordable housing and community development, and National Community Fund I, LLC, an affiliate of United Fund Advisors, LLC, recently closed on a $22.3 million federal new markets tax credit (NMTC) transaction that will finance the green expansion of a health care center in New York City.
The transaction will fund construction of the Harrison Circle Building, a 48,700-square-foot addition at the Morris Heights Health Center (MHHC) in the Bronx. The expansion will serve an extra 18,000 patients per year, and provide local residents with access to new services such as physical therapy, mammography, orthopedics, and cardiology. The facility, to be completed by July 2010, will also include medical office space, a pharmacy, and a separate development with 70 affordable apartments for seniors. The project will create about 45 permanent jobs, plus construction and temporary jobs.
The Harrison Circle Building will be built to the U.S. Green Building Council’s LEED Silver standard. Enterprise, which operates a community development entity, is seeking to target its NMTC allocation authority to green developments as part of its Green Communities New Markets Tax Credit Program announced last year. This program is one of the first national financing vehicles for environmentally sustainable commercial and mixed-use developments in low-income areas.
“Our $95 million federal stimulus NMTC allocation is going a long way to provide local economic and community development opportunities nationwide,” said Joe Wesolowski, senior vice president, Structured Finance, Enterprise. “This is among our first three deals to close from the stimulus round and the NMTC program is the most effective way to bring much-needed services, retail and office space to low-income communities.”
Chase served as the investor for Enterprise’s $10 million NMTC allocation and for a $12.3 million NMTC allocation from United Fund Advisors. Enterprise also syndicated $8.3 million in federal low-income housing tax credits to help finance the senior housing units being built at Harrison Circle.
MHHC has provided quality care to low-income residents of the Bronx for nearly 30 years. The development is in a designated federal medically underserved area; more than 75% of MHHC’s patients are at or below the federal poverty level.
Seth W. Pinsky, president of the New York City Economic Development Corporation, said, “The Morris Heights Health Center will now be able to expand its medical services, create new jobs for residents and provide much-needed housing for seniors.”
MHHC CEO and President Verona Greenland said, “This innovative financing has helped us to realize our five-year dream of creating greater access to integrated primary health care services, and sorely needed housing for our lowest income seniors. “The Harrison Circle Project epitomizes our organization’s intrinsic value and unwavering commitment to transform the health, social and economic landscape to benefit all members of our community.”
Enterprise has received $610 million in NMTC allocation authority in the past six years, using it for developments in 18 states and Washington, D.C., including schools, community centers and retail, industrial and office space.
