Accion Opportunity Fund Receives $55 Million New Markets Tax Credit
Accion Opportunity Fund Receives $55 Million New Markets Tax Credit Allocation to Continue Investment in Nonprofit Community Facilities.
Accion Opportunity Fund is pleased to announce it was awarded a new $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 in the western United States. A total of $5 billion in NMTC allocations were recently awarded to 100 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 nonprofits service providers, through the new 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, Director, New Markets Tax Credits.
Accion Opportunity Fund has received a total of twelve allocations, totaling $443 million, to support our community investments. In turn, Accion Opportunity Fund has provided financing for 32 projects throughout the western United States, totaling $388 million in investment for nonprofit facilities and Native American projects that have supported approximately 8,300 construction and permanent jobs
Accion Opportunity Fund’s projects served more than 839,000 unique individuals, including:
- 450,747 low-income individuals
- 324,996 people of color
- 168,559 at-risk youth
For example: Gina and her children moved into LA Family Housing after experiencing homelessness when meningitis rendered Gina blind and she couldn’t pay rent. With safe and secure housing, Gina learned new mobility and life skills for future independence. Accion Opportunity Fund facilitated $28.4 million in financing to help LA Family Housing build an 80,000 square foot, multi-service facility that hosts housing and supportive services all on site.
Sustaining strong communities
2020 Accion Opportunity Fund New Market Tax Credit Programs
In 2020, Accion Opportunity Fund financed the following projects using NMTC:
Union Gospel Mission – Salem
Accion Opportunity Fund provided $11.52 million in financing to Union Gospel Mission – Salem (UGMS) to facilitate the construction of a 58,000 sq. ft. homeless services facility in Salem, OR. UGMS is the largest provider of meals and shelter to individuals experiencing homelessness in the Salem metro area. Its programming covers the continuum of services that aim to transition homeless individuals into housing and independent living.
Once completed, this facility will serve over 5,000 low-income individuals annually and create or retain 50 permanent, benefited, living-wage jobs.
Yakima Valley Farm Workers Clinic – Miramar Health Center
Accion Opportunity Fund provided $9.6 million in financing to the Yakima Valley Farm Workers Clinic (YVFWC) to construct a 40,000 sq. ft. community health center. YVFWC is a non-profit federally qualified health center (FQHC) that serves low income populations. A third of YVFWC’s patient population consists of migrant or seasonal workers.
The new facility will serve 12,362 unique individuals annually (80% low income) and create or retain 76 permanent jobs, all paying living wages and receiving benefits.
Tepeyac Community Health Center
Accion Opportunity Fund provided $10.19 million in financing to Tepeyac Community Health Center, to build a 24,397 sq. ft. health clinic and 5,380 sq. ft. tenant space for a grocer to provide fresh and healthy food to the community.
Tepeyac Community Health Center is an FQHC that is based in the Globeville Elyria-Swansea neighborhood of Denver, CO where the poverty rate is 31.2%. The new clinic will serve 9,600 unique patients annually (90% low income) and create or retain 102 permanent jobs, all paying living wages and receiving benefits.
This most recent $55 million allocation ensures that we will continue to impact low-income communities through critical investments in community facilities in the coming years. Accion Opportunity Fund is currently lining up prospective projects for 2021 and beyond.