$51 million in health, education and dignified aging projects advance equity for those most in need?
Arlington, VA (December 26, 2017) – (RealEstateRama) — ?Capital Impact Partners announced today that it provided more than $51 million in project financing during the third quarter of 2017, supporting increased access to health care, education, affordable housing, and healthy food for underserved communities around the United States. These transactions – including a few returning borrowers – represent concrete impact and positive outcomes for individuals in areas that often suffer from underinvestment or have
“Capital Impact has continued to focus on supporting projects that align with our core values, giving people the best prospects through quality education and health care, healthy food, affordable housing and dignified aging within their community,” said Ellis Carr, president and CEO of Capital Impact Partners. “While sticking to what matters most to the communities we serve, we have also sought out new and innovative methods to achieve social impact for communities that often go overlooked. We’re happy to be back working in the Northeast and to expand our efforts in geographically remote communities.”
Capital Impact’s recent loans helped sustain projects in Arkansas, California, Connecticut, Michigan, Texas and Washington, D.C. In particular, projects expanded access to affordable housing for seniors and increased access to and quality of health care services. These are expected to support nearly 69,000 people and create approximately 600 construction jobs and 400 full-time jobs.
“Behind each of these numbers is a story, a person who is getting a chance to realize possibilities that have been beyond their reach,” said Scott Sporte, chief lending officer at Capital Impact. “Through both traditional lending and supporting innovative initiatives –from tele-health services for patients who need remote or last-minute care to saving historic buildings – we continue to invest in communities toward the goal of equity and opportunity for all.”
Third quarter highlights include:
Supporting Aging in the Community
Dignified and engaging senior housing is a necessary option for all older adults, and Capital Impact continues to champion innovative models for communal senior living. As part of the Green House model of senior care, Capital Impact worked with returning borrower SAS Poplar Grove Green Houses (operating as Poplar Grove, LLC) on a $17.8 million transaction – including New Markets Tax Credits (NMTC) – which financed the construction of the Green House Cottages of Poplar Grove. This Green House campus includes ten skilled nursing Green House homes, one short-term rehabilitation facility, and one administrative building. The Green House Project – started as a Capital Impact initiative and spun off into an organization – provides nursing care in a small, homelike setting with individualized care, allowing older adults to age within their community. The Green House in Poplar Grove will serve 120 total residents, at least 40% of whom will be Medicaid-eligible, extending quality, affordable senior care and housing.
Continuing Detroit’s Revitalization
The United Artists Building (UAB), a historic landmark/vacant 18-story building in downtown Detroit, will soon get a new lease on life. Long abandoned, the 206,000 sq. ft. building will be transformed into a mixed-use development that will consist of 6,388 sq. ft. of commercial space and 148 one- and two-bedroom rental housing units. Twenty percent of the units will be reserved for residents living at 80% of Area Median Income, with the remainder priced at market rates. The project was financed through a $500,000 pre-development loan from Capital Impact to Bagley Development Group, LLC.
Increasing Access to Health Care
Quality health care is a right that all deserve and is at the core of Capital Impact’s work. When people are in poor health, they cannot achieve their full potential. A great example of the need for health care services is the community surrounding the latest Mountain Health & Community Services (MHCS) health center. The region around Campo, CA is geographically isolated, a large, rural border area of southeastern San Diego County. The closest emergency room is at least 50-90 miles away over a mountain pass periodically closed due to weather. As part of the CPCA (California Primary Care Association) Ventures Loan Fund, Capital Impact provided a $1 million capital loan to MHCS, which supported development of a new, 23,000 sq. ft. health care facility in the region. This MHCS center is the only safety net in
The new facility replaces an aging, triple-wide trailer in which MHCS formerly operated, and provides additional space to better serve the community. MHCS is a growing Federally Qualified Health Center (FQHC); more than 90% of its clients are low-income residents. MHCS practices the Patient-Centered Medical Home model, prioritizing comprehensive, coordinated care that focuses on the whole person. The new health center provides primary and preventive care, behavioral health, and community services to a population that faces many barriers in accessing health care and community services.
Returning borrower Inland Behavioral & Health Services, Inc. provides a full array of medical services to patients in the San Bernardino, CA area, more than 99% of whom have an income below 200% of the federal poverty level. A $1.71 million loan from Capital Impact helped facilitate ground-up construction of a new clinic in Banning, CA. Through this clinic, Inland ensures that community members have access to the quality health care they need and deserve. Additional services provided by this FQHC include a pharmacy, dental clinic, OBGYN practice, prevention and wellness center, substance abuse services, mental health services, and homeless support programs through a network of health centers.
North Texas Area Community Health Centers (NTACHC) serves a predominantly young, Latino, low-income, uninsured and underinsured population as the only FQHC in Tarrant County, TX and needed a new facility to adequately serve its clients. As part of a $15 million New Markets Tax Credit transaction, Capital Impact provided NTACHC with a $10 million loan to finance the construction of a new 33,000 sq. ft. health center in Ft. Worth, TX. The Nonprofit Finance Fund (NFF) contributed an additional $5 million, with Capital One, N.A. as the tax credit investor. NTACHC already operates three community health centers in the Ft. Worth area.
The new health center will replace NTACHC’s current headquarters facility, including the main health center. The new facility will serve 24,000 patients – 66% of whom are considered low-income – with a full range of family-oriented comprehensive primary and preventive services, including family medicine, pediatrics, OBGYN, family planning services, prenatal care, behavioral care services (depression and anxiety counseling), and health education promotion and disease prevention services. The site will have approximately 38 exam rooms, 6 dental operatories, pharmacy, lobby/waiting areas, care coordination areas, and offices/meeting space. In addition, the health center created 125 construction jobs and 40-45 full-time employees.
In one of the largest deals of the quarter, Capital Impact provided Community Health Center, Inc. (CHCI) with $12.8 million – including New Markets Tax Credits – as part of a larger leverage/construction loan. The loan supported renovation of CHCI’s existing 24,000 sq. ft. pediatric health center in Hartford, CT; interior renovation of the existing center to reflect CHCI’s “pod” model of care delivery, in which multiple medical professionals provide a variety of care in one patient visit; and complete renovation of a 19,000 sq. ft. facility to supplement CHCI’s existing clinic site in Stamford, CT, which provides primary care, behavioral health, and dental services. The loan also supported construction of a new 30,000 sq. ft. building to house CHCI’s tele-health facilities, featuring space for eConsults as well as administrative functions and a data center near its headquarters in Middletown, CT. Other investors included Primary Care Development Corporation, Boston Community Capital and Capital One.
CHCI benefits 25,000 patients in the area encompassing Hartford, Stamford and Middletown through these facilities; 94% of patients have incomes below 200% of the federal poverty level. Additionally, the project created 25 construction jobs and 66 permanent jobs.
Community Health Systems Inc. (CHSI) needed to expand its facilities to serve more clients at its flagship location in Bloomington, CA. Using funds from its Healthier California Fund, Capital Impact contributed $1.3 million of a $3.3 million refinance/construction loan along with CHC Capital. The project includes renovation of its current clinic as well as an adjacent leased site which will be turned into a clinic. Once complete, CHSI will have doubled the amount of square footage available to serve its patients, allowing it to serve more than 8,100 patients annually – versus 5,600 patients in the current space – 91% of whom are Medi-Cal clients or pay for health care out of pocket. It will also expand the clinic’s current services to include obstetrics, behavioral health, and internal medicine.
Providing High-Quality Education
Capital Impact’s dedication to expanding access to quality education continues to grow. In Texas, The Lawson Academy, a charter school currently serving 143 low-income and at-risk 6th, 7th, and 8th grade students, needed a new home. The high-need student population enters the school with significant grade-level gaps, and The Academy has succeeded in increasing average academic achievement by 1.6 grades per year. The school uses a creative academic curriculum to build student success and to develop the whole person. Capital Impact supported the William A. Lawson Institute for Peace and Prosperity (WALIPP) with a $2 million leverage loan as part of a $10.5 million NMTC transaction to finance the ground-up construction of a new 36,632 sq. ft. school building that will serve as the The Academy’s permanent home in Houston’s Third Ward. The new building will allow the school to more than double enrollment to 350 students, giving countless Houston children a chance at a
Capital Impact partnered with the Low Income Investment Fund (LIIF) to support Charter School Incubator Initiative (CSII) to implement much-needed renovations for the building housing Somerset Preparatory Academy and Community College Preparatory Academy in Washington, D.C. The 48,326 sq. ft. building in Washington, D.C.’s eighth ward currently supports 650 6th-12th grade students and 200 adult learners. Eighty percent of Somerset’s students qualify for free or reduced lunch (FRL); 80% of Community College Prep’s students qualify for the federal Supplemental Nutrition Assistance Program (SNAP). Before the coming of the schools, students in Ward 8 who wanted access to higher-performing schools had to travel to other parts of the city, adding a burden of additional travel time for a quality education. Somerset and Community College Prep provide a vital option for quality education within the community. Capital Impact contributed $4.4 million from its balance sheet to the co-loan transaction with LIIF.
About Capital Impact Partners: Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. We deliver strategic financing, incubate new social programs, and provide capacity-building to help ensure that low-to-moderate-income individuals have access to quality health care and education, healthy foods, affordable housing, and the ability to age with dignity. A nonprofit community development financial institution, Capital Impact Partners has disbursed more than $2 billion to revitalize communities over the past 30 years. Our leadership in delivering financial and social impact has resulted in Capital Impact earning a “AA” rating from S&P Global “AA” and being recognized by Aeris since 2005 for our performance. Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Detroit, MI, and Oakland, CA. Learn more at www.capitalimpact.org.