Investing in communities with new $55M allocation
Accion Opportunity Fund receives $55 million New Markets Tax Credit Allocation to continue supporting job creation and nonprofit neighborhood facilities
Accion Opportunity Fund is pleased to announce it was awarded a $55 million allocation under the U.S. Treasury Department’s New Markets Tax Credit (NMTC) program. Accion Opportunity Fund leverages federal tax credits to invest in high-impact community projects that provide safety-net services for low-income communities, as well as local jobs, in the western United States. A total of $5 billion in NMTC allocations were recently awarded to 107 organizations nationwide through a highly competitive application process.
“With this allocation award, Accion Opportunity Fund will be able to raise $55 million from lenders and investors to finance the expansion of nonprofit service providers, through construction of community health clinics, youth centers, homeless shelters, and other types of community facilities that provide substantial benefits to low-income communities,” said Chris Huang, Senior Director, New Markets Tax Credits at Accion Opportunity Fund.
AOF’s impact through the New Markets Tax Credit Program
Accion Opportunity Fund has received a total of thirteen allocations, totaling $498 million. In turn, Accion Opportunity Fund has provided financing for 35 projects, generating $423.5 million in investment for nonprofit facilities and Native American community projects. The projects AOF has invested in have, in turn, created approximately 9,000 construction and permanent jobs.
Accion Opportunity Fund’s New Markets Tax Credit projects serve approximately 874,000 unique individuals annually, including 470,000 low-income individuals, 350,000 people of color, and 179,000 youth.
Recent Accion Opportunity Fund New Markets Tax Credit Projects
Youth lead the way at RYSE Commons
RYSE Commons, which opened in 2022, provides a safe space for youth in Richmond, California. Its programming includes direct services, education, leadership building, and organizing across issues that affect youth. After temporarily closing due to COVID, RYSE aims to serve 6,750 youth annually—92% low income and 94% youth of color—through services provided, events, and community outreach.
One of RYSE’s members is DC* (name changed per individual’s request), a formerly incarcerated youth. He was recently elected to the Contra Costa County Juvenile Justice Coordinating Council. As a member of that Council, DC advocates for youth who have been systems-impacted and helps push policies that better ensure safe returns and positive outcomes for youth re-entering community after incarceration.
Reimagining health care at Clinicas Blythe
Accion Opportunity Fund provided $10.08 million in financing to help Innercare, a Federally Qualified Health Center, purchase an old retail center and rehab it into a 16,000 square feet health clinic in Blythe, California. This clinic will provide primary care, dental, radiology and behavioral health to low-income individuals, homeless, and migrant workers, and children in an area where the poverty rate is 41%.
Once completed, this facility will serve over 8,000 individuals annually, including 81% low-income individuals: 91% people of color. The facility will also create or retain 48 permanent jobs.
Converting an old hospital into community housing in Fresno
Accion Opportunity Fund provided $14.4 million in financing to the Fresno Mission to purchase an old 160,000 sq. ft. hospital campus and rehab it into a services campus for unhoused community members. The center will create a community for children, families, and individuals facing life insecurities related to homelessness and poverty. The new campus will provide space for many community partners to provide a holistic array of supportive services such as education, healthy food, job training, and substance abuse treatment.
The new facility will serve 5,800 unique individuals (91% low-income and 61% people of color) annually and create or retain 60 permanent jobs, in an area where the poverty rate is 35%.
Expanding support services in Chico
Accion Opportunity Fund provided $9.6 million in financing to the Jesus Center to build the Renewal Center, a 47,000 square foot, multi-agency homeless services campus that will provide flexible shelter options, medical and mental health services, and other supportive services. Shelter beds will be accessible to vulnerable individuals who may have trouble accessing housing elsewhere. The new homeless services facility will serve 848 clients (100% low-income and 35% people of color) annually and create or retain 60 permanent jobs, in an area where the poverty rate is 45%.
This most recent $55 million allocation ensures that we will continue to support low-income communities through critical investments in community. Accion Opportunity Fund is currently lining up prospective projects for Fall 2022 and beyond. Learn more about our New Markets Tax Credits program.