The innovative approach of the Smith Model not only makes Multi-QALICB investments of under $2M possible, but with an added Multi Tranche feature that expands the potential number of participating Habitat affiliates in each NMTC transaction, there is a substantial cost savings. The Smith NMTC Model provides cost savings of 85% to each affiliate of related fees and expenses associated with single QALICB investments of the same levels.

Financing on the total investment includes more than $12 million of NMTC equity from U.S. Bancorp Community Development Corporation, the community investment subsidiary of U.S. Bank, an NMTC allocation of $42M from CCML, the Smith NMTC Model and additional funds provided by the Habitat affiliates through the funding they’ve received from various corporate and faith-based organizations and individuals. Utilizing the Smith NMTC Model to specifically tackle the roadblocks to NMTC funding of smaller projects, each Habitat affiliate received $1.8 million NMTC financing from CCML in one of four transactions that closed between April 12 – August 31, 2012.

Stacey White, a mother of four who will be moving her son and three daughters into a Habitat home (funded with the help of NMTCs) in a Madisonville neighborhood of Cincinnati, said, “I know my story mimics others – but I want to know when I get up every day to go to work to provide for my children that it is not only to put food in their mouths and clothes on their back – but to know they are also important enough to come home to a real home.”

The NMTC Program is administered by the U.S. Treasury and is designed to spur new or increased investments in operating businesses and real estate development projects located in designated low-income communities. The program raises private investment and leverages public and private funding to provide borrowers like these Habitat affiliates with financing that comes in the form of very favorable rates and below market, flexible terms.

“Access to quality housing is a critical problem for millions of Americans. While we’re proud to have a strong track record of investing in affordable housing, a challenging economy means that addressing this issue is more important than ever,” said Zack Boyers, the chairman and chief executive officer of U.S. Bancorp Community Development Corporation. “By partnering with Smith NMTC, CCML and these Habitat affiliates, we’re leveraging the NMTC Program to build even more homes than originally planned. More importantly, we’re working to enrich more lives and strengthen more neighborhoods.”

Each of the 500 hard working families that purchase these NMTC supported homes has personal dreams for themselves and their children. For many it’s as simple as wanting their children to be safe – away from gangs or drugs in a family friendly neighborhood. For others it’s the fulfillment of a lifelong dream or an affordable home to retire. Studies show that children of homeowners do better in school and are more likely to attend college. Homeownership serves as a powerful economic stimulus. Home equity is one of the largest sources of collateral for bank loans to start new businesses and homeowners are almost three times as likely to own a business as renters.

Beyond the obvious benefits to the 500 future homeowners, this $42M NMTC investment fuels local economies and enables job retention and creation at a time when job creation strategies are essential to economic recovery. Nationally, construction of the 500 NMTC funded homes from this CCML investment will result in the retention of 574 full time and 83 part time affiliate jobs; the creation of 22 full time and 14 part time affiliate jobs; and 897 new construction or pre-development jobs.

“These projects hit on each of our triple bottom line underwriting criteria, furthering economic progress, social equity and environmental sustainability,” said Charlie Spies, CEO of CEI Capital Management. “We are pleased to be a partner with Smith NMTC and U.S. Bank in developing a creative way to build homes and create economic opportunity for hundreds families throughout the 21 Habitat for Humanity affiliates.”

Having served as president, general counsel and member of the Habitat for Humanity St. Louis board of directors for over 20 years, Howard Smith, JD, Principal of Smith NMTC and co-founder Donna Smith, JD, Executive Vice President are well versed on the social justice aspects and overarching benefits of homeownership in low income communities. They saw the potential of applying NMTCs to “for-sale” affordable housing and have since seen their idea build – literally.

“Our focus on applying NMTCs as a funding vehicle for Habitat for Humanity homes goes back to before we started our business,” said Howard Smith, Principal of Smith NMTC. “In 2006 we took the idea for what became the Smith NMTC Model to Zack Boyers and Marc Hirshman, leaders at U.S. Bancorp Community Development Corporation. They were instrumental in helping us draft a potential model and deal structure and have participated as our financing partner ever since. CCML has also been an ideal partner in putting this NMTC funding for 500 affordable Habitat homes to work.”

In accomplishing these outcomes, Smith NMTC was fortunate to have the excellent participation of U.S. Bancorp Community Development Corporation; CEI Capital Management LLC, Polsinelli Shughart, PC; Novogradac & Company, LLP; Elkins, PLC; Johnson & McCaa, LLC; and Husch Blackwell to complete all legal, financial, accounting and compliance requirements to make this $42 million NMTC funding possible for the 21 National affiliates:

April 12, 2012

Habitat for Humanity of Coastal Fairfield County (CT) – 14 homes

Hartford Area Habitat for Humanity(CT) – 10 homes

Habitat for Humanity of Greater New Haven, Inc. (CT) – 15 homes

Habitat for Humanity of St. Louis (MO) – 10 homes

Habitat for Humanity of Omaha, Inc. (NE) – 26 homes

May 24, 2012

Habitat for Humanity of Metro Denver, Inc. (CO) – 10 homes

Highlands County Habitat for Humanity Inc. (FL) – 124 homes

Habitat for Humanity of Kent County, Inc. (MI) – 12 homes

Tacoma/Pierce County Habitat for Humanity (WA) – 27 homes

Habitat for Humanity Tucson, Inc. (AZ) – 13 homes

July 26, 2012

Almost Heaven Habitat for Humanity Inc. (WV) – 23 homes

Sacramento Habitat for Humanity Inc. (CA) – 24 homes

Portland Habitat for Humanity (OR) – 23 homes

Memphis Habitat for Humanity (TN) – 13 homes

Austin Habitat for Humanity (TX) – 12 homes

August 31, 2012

Habitat for Humanity Pinellas County (FL) – 15 homes

Habitat for Humanity Central Arizona (AZ) – 15 homes

Habitat for Humanity Milwaukee (WI) – 18 homes

Habitat for Humanity Greater Nashville (TN) – 17 homes

Cincinnati Habitat for Humanity (OH) – 38 homes

Habitat for Humanity Wake County (NC) – 41 homes

“It’s inspiring to be present at a Habitat homeowner’s dedication ceremony where they receive their keys and become the first homeowner in their family,” noted Donna Smith. “In the coming months and years, there will be 500 ceremonies to celebrate the opportunities that this NMTC commitment from CCML and U.S. Bank represents and that Habitat for Humanity affiliates provide their Partner Families every day. We look forward to celebrating their achievements and to creating new opportunities for Habitat affiliates and Habitat partner families of the future.”

In Ohio, Cincinnati Habitat for Humanity will use more than $1.8 million of NMTC financing from CCML of Portland, ME to help build 38 homes ranging in size from 1020 – 2210 square feet. The homes will be built in low-income neighborhoods of Cincinnati, Lockland, North College Hill and Colerain Township where poverty rates are between 25.70% – 54.30% and unemployment is 1.25 – 3.89 times the national average. Construction of 30 homes will be completed by December 2013 with the remainder to be completed over the following four years.

The NMTC program is administered by the U.S. Treasury and is designed to spur new or increased investment into operating businesses and real estate developments located in designated low-income communities. The program raises private investment and leverages public and private funding to provide borrowers like these Habitat affiliates with financing that comes in the form of very favorable rates and below market, flexible terms.

Partnerships like this one orchestrated by Smith NMTC with CCML and Cincinnati Habitat for Humanity, and invested in by U.S. Bank, help Habitat affiliates stretch their fundraising and development dollars, increasing the nonprofit’s ability to meet its mission of building decent, affordable housing for hardworking families in need.

Ed Lee, Executive Director for Cincinnati Habitat for Humanity and his staff are involved in every aspect of the Habitat process. The organization works with local businesses and organizations to raise funds for supplies and services, attracts and works with corps of volunteers, and helps hard working families who would not otherwise qualify for conventional home loans, achieve home ownership as Habitat Partner Families.

“Although we are fortunate to have a strong group of committed volunteers and businesses who join us in our mission of eliminating substandard housing in our affiliate communities, the tough economy often makes the process difficult,” said Lee. “The clear benefits of homeownership for our families and the greater community provide a compelling and effective platform for us to compete for funding dollars. The NMTC program shares our goal to revitalize and strengthen our low income communities. We are pleased to partner with Smith NMTC, CEI, and U.S. Bank to expand our construction budget for 38 homes.”

The Anderkin Family – Cincinnati Habitat Family Partners

Home Sweet Habitat Home Partner Families like Leanna Anderkin and her two daughters, Megan and Annabelle, are among those achieving home ownership. She is an Operations Manager for Hondros College, School of Nursing.

Just 5 years ago, Leanna rented the home that previously occupied this lot on Boudinot. While going through the application process to build with Cincinnati Habitat, Leanna researched and discovered that the lot in which she use to reside with her daughters had been purchased by Habitat.

Although the home in which she lived no longer exists due to a fire, Leanna is now returning to the west side; but not as renter in someone else’s home, rather as the owner of her very own home that she will help build. Leanna has stated that she is very excited to be building as the entire process brings with it a sense of “community and family.”

Cincinnati Habitat family partners contribute 500 sweat equity hours before purchasing their home. They sign standard loan documents and make affordable, monthly mortgage payments of between $400-$500 to repay the 0%-interest loan over 20-30 years. This Habitat affiliate offers homeownership opportunities to low-income families unable to obtain conventional financing.

Energy efficiency and green building practices also provide significant benefits for Cincinnati Habitat family partners whose homes are built to Energy Star+ certified standards or greater. In March 2012, the Cincinnati Habitat affiliate completed its first LEED Certified Homes in a move to expand their mission to provide affordable and energy efficient homes for families in need. This commitment helps not only the environment, but it also helps create sustained energy savings for partner families. LEED stands for Leadership in Energy and Environmental Design, and is an internationally recognized green building certification system.

The idea of applying NMTCs to “for-sale” affordable housing as a funding vehicle for Habitat for Humanity affiliates was the primary goal and focus of Smith NMTC co-founders Howard Smith, JD, Principal and Donna Smith, JD, Executive Vice President. Howard had served as president, general counsel and a member of the Habitat for Humanity St. Louis board of directors for over 20 years and knew the revitalizing impact home ownership had on low income communities. After discussing the idea with NMTC officials at U.S. Bancorp Community Development Corporation, the community investment subsidiary of U.S. Bank, and putting together a working model, the Smiths saw their idea build – literally. The Smith NMTC Model now makes NMTC dollars available to help Habitat affiliates build more homes and make more interest free loans available to industrious Habitat family partners.

”CCML is pleased to be a partner with Smith NMTC and U.S. Bank in developing a creative way to fund Cincinnati Habitat for Humanity,” said Tad Atwell, CCML’s Senior Investment Officer. “This project hits on each of our underwriting criteria where the beneficiary furthers economic progress, social equity and environmental sustainability.” CCML utilized the model developed by Smith NMTC Associates specifically to tackle the roadblocks to NMTC funding of smaller projects associated with affordable, for sale, single family housing.

It Takes a Community to Build a Community

Similar to the approach Habitat for Humanity must take to gather necessary volunteers and businesses to get a home funded and built, the process of putting together NMTC funding for Habitat affiliates requires a community of focused, committed partners to insure success.

“We were fortunate to have the excellent participation of U.S. Bancorp Community Development Corporation; CEI Capital Management LLC, Polsinelli Shughart, PC; Novogradac & Company, LLP; Elkins, PLC; Ahlers & Cooney, PC; Husch Blackwell, and Davis Brown Law Firmto complete all legal, financial, accounting and compliance requirements to make this $22 million NMTC funding possible for the 11 affiliates in these 10 states,” said Howard Smith. “Each provided invaluable assistance.”

Additionally, construction of the 239 NMTC funded homes from this investment will result in the retention of 319 full- and 28 part-time Habitat affiliate jobs; the creation of 14 full- and 9 part-time Habitat affiliate jobs; and 483 new construction or pre-development jobs across the country.

Cincinnati Habitat for Humanity, CEI Capital Management LLC, U.S. Bank and Smith NMTC Associates, LLC, partnerships building communities, are looking forward to seeing the 38 new Habitat family partners at work with local business and volunteers raising their new houses and fulfilling a time- honored American dream.

In Arizona, HFHCAZ will use more than $1.8 million of NMTC financing from CCML of Portland, ME to help build 15 homes ranging in size from 1320 – 1583 square feet. The homes will be built across the Greater Phoenix-Metropolitan Area in Glendale, Surprise, Mesa, Apache Junction, and Phoenix in areas designated as high-need for revitalization. Construction will be completed and homes sold between July 2012 and May 2013.

The NMTC program is administered by the U.S. Treasury and is designed to spur new or increased investment into operating businesses and real estate developments located in low-income communities. The program raises private investment and leverages public and private funding to provide borrowers like these Habitat affiliates with financing that comes in the form of very favorable rates and below market, flexible terms.

Partnerships like this one orchestrated by Smith NMTC with CCML and HFHCAZ, and invested in by U.S. Bank, help Habitat affiliates stretch their fundraising and development dollars, increasing the nonprofit’s ability to meet its mission of building decent, affordable housing for hardworking families in need.

HFHCAZ meets or exceeds the national standards of the for-profit building community. Energy efficiency is also a significant benefit for HFHCAZ family partners whose homes are built to meet or exceed Energy Star standards. HFHCAZ family partners contribute 400 sweat equity hours before purchasing their home. They pay a modest down payment, sign standard loan documents, and make affordable, monthly mortgage payments of between $400-$500 to repay the 0%-interest loan over 20-30 years. This Habitat affiliate offers homeownership opportunities to low-income families unable to obtain conventional financing.

“The benefits of home ownership for families and the surrounding community are tremendous,” said Roger Schwierjohn, CEO of HFHCAZ. “It helps break the cycle of poverty for low-income families and provides for a more stable future. We have seen this stability resonate in the communities of our partner families and their neighbors who are investing more resources to improve the quality of their homes. We are pleased to expand our construction budget for 15 homes with NMTC funding.”

Alma Luna’s top priority is the safety of her children and providing a better living environment for them in a family friendly neighborhood. The Lunas are among the Central Arizona Habitat family partners working on one of the NMTC Homes.

The Luna family is one of the HFHCAZ family partners working on a home financed with NMTCs. Currently, Alma Luna and her three daughters live in a three bedroom apartment in a neighborhood consumed with serious crime. Although it had small bedrooms and not enough living space, the Luna family’s apartment size was not the immediate issue. The neighborhood was filled with gang activity: drugs, fights, and homicide. Alma did not want her children to think that this was a normal way of life. She wanted a better living environment for her daughters in a family friendly neighborhood.

Alma works at a local Walmart in addition to being self-employed making and selling tamales. Her daughter Fernanda (15 years old) aspires to work with special needs children. Isela (13 years old) enjoys playing soccer, and Esmeralda (10 years old) loves to spend time with her family. As a family, they enjoy going to the mall, buffets, and watching movies at home.

Alma and her daughters are very excited about owning their own home in a family-friendly community. The safety of her children is Alma’s top priority and she is confident that this new path is exactly what her family needs. They cannot wait to start making new memories in their new home.

The idea of applying NMTCs to “for-sale” affordable housing as a funding vehicle for Habitat for Humanity affiliates was the primary goal and focus of Smith NMTC co-founders Howard Smith, JD, Principal and Donna Smith, JD, Executive Vice President. Howard had served as president, general counsel and a member of the Habitat for Humanity St. Louis board of directors for over 20 years and knew the revitalizing impact home ownership had on low income communities. After discussing the idea with NMTC officials at U.S. Bancorp Community Development Corporation, the community investment subsidiary of U.S. Bank, and putting together a working model, the Smiths saw their idea build – literally. The Smith NMTC Model now makes NMTC dollars available to help Habitat affiliates build more homes and make more interest free loans available to industrious Habitat family partners.

”CCML is pleased to be a partner with Smith NMTC and U.S. Bank in developing a creative way to fund Habitat for Humanity Central Arizona,” said Tad Atwell, CCML’s Senior Investment Officer. “This project hits on each of our underwriting criteria where the beneficiary furthers economic progress, social equity and environmental sustainability.” CCML utilized the developed by Smith NMTC Associates specifically to tackle the roadblocks to NMTC funding of smaller projects associated with affordable, for sale, single family housing.

It Takes a Community to Build a Community

Similar to the approach Habitat for Humanity must take to gather necessary volunteers and businesses to get a home funded and built, the process of putting together NMTC funding for Habitat affiliates requires a community of focused, committed partners to insure success.

“We were fortunate to have the excellent participation of U.S. Bancorp Community Development Corporation; CEI Capital Management LLC, Polsinelli Shughart, PC; Novogradac & Company, LLP; Elkins, PLC; Ahlers & Cooney, PC; Husch Blackwell, and Davis Brown Law Firm to complete all legal, financial, accounting and compliance requirements to make this $22 million NMTC funding possible for the 11 affiliates in these 10 states,” said Howard Smith, Principal of Smith NMTC. “Each provided invaluable assistance.”

Additionally, construction of the 239 NMTC funded homes from this investment will result in the retention of 319 full- and 28 part-time Habitat affiliate jobs; the creation of 14 full- and 9 part-time Habitat affiliate jobs; and 483 new construction or pre-development jobs across the country.

Habitat for Humanity Central Arizona, CEI Capital Management LLC, U.S. Bank and Smith NMTC Associates, LLC, partnerships building communities, are looking forward to seeing the 15 new Habitat family partners at work with local business and volunteers raising their new houses and fulfilling a time- honored American dream.

The Greater Des Moines Habitat will use its nearly $4.5 million NMTC investment from Iowa Community Development LC (ICD) to build 27 homes ranging in size from 1023 – 1320 sq. ft. in the Riverbend, Union Park, King Irving, Mondamin Presidential, Capitol Park, and Drake neighborhoods. Construction will be completed by May 15, 2013.

The NMTC program is administered by the U.S. Treasury and is designed to spur new or increased investment in operating businesses and real estate developments located in low-income communities. The program provides tax credits as an incentive for private investment and leverages public and private funding to provide borrowers like these Iowa Habitat affiliates with financing in the form of very favorable below market rates and flexible terms.

Partnerships like this one orchestrated by Smith NMTC Associates, LLC (Smith NMTC) with ICD, and the Iowa Habitat affiliates and invested in by U.S. Bank help stretch fundraising and development dollars, increasing the nonprofit’s ability to meet its mission of building decent, affordable housing for hardworking families in need.

Sarah Joseph and her three children stand on the porch of their new Habitat Home in Des Moines after the dedication ceremony.

“NMTC funding will help provide homeownership opportunities for 27 families, including more than 50 children,” said Lance Henning, executive director of Greater Des Moines Habitat for Humanity. “We are thrilled to be second time recipients of this funding that assists in building stable home environments and a revitalized community.”

The homes in Des Moine will be built in areas receiving additional attention through Greater Des Moines Habitat’s Rock the BlockTM program. A year ago, a new playground was installed at Edna Griffin Park, located in the King Irving neighborhood to provide an updated, safe place for children to gather and play. Rock the BlockTM has impacted nearly 20 families in King Irving/Mondamin Presidential neighborhoods and more than 20 families in the Drake neighborhood in 2012. Many other community organizations have focused efforts in these neighborhoods as well. Through Rock the BlockTM, GDM Habitat collaborates with many of them to help spur holistic neighborhood revitalization.

Energy efficiency is also a significant benefit for GDM Habitat family partners. The GDM affiliate recently built the first homes in Iowa to meet the National Association of Home Builders Emerald standard, the highest rating for residential green building requiring energy savings of 60% or more. Two of the homes will be built to National Association of Home Builder’s Emerald standard, and the remaining 25 will meet Energy Star 3.0 standards insuring energy savings of up to 30% percent, compared to a home built to code.

The idea of applying NMTC financing to “for-sale” affordable housing as a funding vehicle for Habitat for Humanity affiliates was the primary goal and focus of Smith NMTC co-founders Howard Smith, JD, Principal and Donna Smith, JD, Executive Vice President. Having served as president, general counsel and a member of the Habitat for Humanity St. Louis board of directors for over 20 years, Howard knew the revitalizing impact home ownership has on low income communities. After discussing the idea with NMTC officials at U.S. Bank and putting together a working model, the Smiths saw their idea build – literally. The Smith NMTC Model now makes NMTC dollars available to help Habitat affiliates build more homes and make more homes available to industrious Habitat family partner buyers across the U.S.

Additional benefits of the Habitat home builds receiving NMTC funding are the number of local businesses and volunteers involved in the build furthering their businesses and the local economy. In Iowa, 73 full-time Habitat affiliate jobs will be retained, one full-time affiliate job will be created, 16 part-time affiliate jobs will be retained and 125 construction or pre-development jobs will be created.

It Takes a Community to Build a Community

Similar to the approach Habitat for Humanity must take to gather necessary volunteers and businesses to get a home funded and built, the process of putting together NMTC funding for Habitat affiliates requires a community of focused, committed partners to insure success.

“We were fortunate to have the excellent participation of U.S. Bancorp Community Development Corporation; Iowa Community Development; Polsinelli Shughart, PC; Novogradac & Company, LLP; Elkins, PLC; Ahlers & Cooney, PC.; Husch Blackwell, and Davis Brown Law Firm to complete all legal, financial, accounting and compliance requirements to make this $12 million of NMTC funding possible in Iowa,” said Howard Smith. “Each provided invaluable assistance.”

Habitat family partners contribute between 300 – 500 sweat equity hours before purchasing their home. They pay a modest down payment, sign standard loan documents, and make affordable, monthly mortgage payments to repay the 0%-interest loan over 20-30 years. These Habitat affiliates offer homeownership opportunities to low-income families unable to obtain conventional financing.

“Strengthening our communities with NMTC dollars has far reaching benefits,” said John Rigler, Chairman of Iowa Community Development. “We are pleased to partner with Smith NMTC and others on this project by supporting the Habitat for Humanity mission to provide affordable and sustainable housing for hard-working, low-income families in Iowa,” Rigler added.

Allocation of NMTC Funding to the four additional Iowa affiliates follows:

Cedar Valley Habitat for Humanity received more than $1.9 million of NMTC financing to build 13 (813 – 1966 sq. ft.) homes in Cedar Rapids, Hiawatha, and Marion, IA to be completed by October 1, 2013.

Iowa Heartland Habitat for Humanityreceived a $2.2 million NMTC investment to build 27 (1100 -1200 sq. ft.) homes in Waterloo, Waverly and Cedar Falls, IA. Construction will be completed over a nine year period with 17 of the homes completed by December 2013, three additional homes by August 2014, and the remaining seven homes by August 1, 2021.

Iowa Valley Habitat for Humanity received more than $1.0 million of NMTC funding to build 9 (1250 – 1350 sq. ft.) homes in Iowa City and Tipton, IA. Construction of four homes will be completed in the next 16 months and the remainder over a 7 year period.

Siouxland Habitat for Humanity received a more than $2.0 million NMTC investment to build 18 (1120- 2670 sq. ft.) homes in Sioux City, Onawa and Sioux Center, IA. Ten of the homes will be completed by September 2013 and the remaining 8 homes will be completed by October 2017.

The Five Iowa Habitat Affiliates, Iowa Business Growth Company, U.S. Bank and Smith NMTC Associates, LLC, partnerships building communities, are looking forward to seeing the 94 new Habitat family partners at work with local businesses and volunteers raising their new houses and fulfilling a time-honored American dream.