(Photo Courtesy of Our House)
Our House announced on Aug. 17 that it has closed on a $10 million NMTC (New Markets Tax Credit) financing package to expand its services for families and individuals who are homeless in central Arkansas.
The financing will enable Our House to double its transitional housing capacity with apartment style units dedicated to families, double its childcare development and youth programming, create dedicated space for physical and mental health services and expand Our House’s workforce training services.
The 27,300 square-foot expansion is the first in over 14 years and will enable Our House to serve an additional 250 low-income adults and children daily. The expansion is expected to open in the fall of 2023 and is part of the non-profit’s $16 million development plan for its 7 acre campus.
Our House will also be able to expand childhood programming, which currently has a waiting list of over 200 children, and to expand its mental health services by 50%. The project will create 43 permanent full-time jobs over the next few years.
The new facility qualified for the federal NMTC program because it is in a highly distressed census tract with a 26.50% poverty rate (over 2.3 times the national rate), an unemployment rate of 14.3% (1.72 times national average) and area median income that is 48.79% of the median family income. The NMTC investment will result in a $2 million net benefit for Our House in support of this expansion plan.
“The $10 million tax credit allocation from Heartland Renaissance Fund will enable Our House to address the growing need for our services in central Arkansas,” said Ben Goodwin, executive director of Our House. “Our House has seen total volume served increase by 83% in just two years, to more than 600 people per day served. Our board and staff have worked together to develop a solid plan for expanding to meet this need, and the NMTC investment is playing a huge role in making our expansion plan a reality.”
NMTC financing is provided by Little Rock based Arkansas Capital Corporation, which has invested $375 million of NMTC allocation supporting over 40 projects throughout the states of Arkansas, Mississippi, Missouri and Oklahoma.
“ACC is excited to be a financing partner supporting the mission of Our House,” said Arkansas Capital Corporation CEO Sam Walls. “Our House is an important asset for the communities’ efforts to address homelessness, as well as connecting formerly incarcerated people with the workforce and helping them navigate the legal system.”
Heartland Renaissance Fund is the sole community development entity (CDE) for the project. First Horizon served as the tax credit investor, providing $3,159,000 in tax credit equity.
“First Horizon is excited to be involved in the Our House transaction as it provides much-needed housing support for the homeless community in central Arkansas,” said David Shindler, executive vice president for First Horizon Bank. “At First Horizon, we believe that our company is only as successful as the communities in which we operate, so it is imperative that we help strengthen our communities through strategic partnerships and investments.”
New Markets Tax Credits (NMTCs) were established by Congress in 2000 to stimulate investment and economic growth in designated low-income communities. The NMTC Program is administered by the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund).
Arkansas Capital Corporation invests in projects that foster job creation and overall economic/social development in targeted low-income communities throughout Arkansas, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee, and Texas. To date, ACC has received $375 million in New Markets Tax Credit (NMTC) allocation.
First Horizon is a leading regional financial services company headquartered in Memphis, TN.
Our House is a private non-profit formed in 1987 that empowers homeless and near-homeless families and individuals in central Arkansas. Located in Little Rock, Our House offers comprehensive services to build a pathway out of homelessness.
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