Communities in two states will experience an increase in affordable homeownership opportunities with the support of New Markets Tax Credit (NMTC) allocation from USBCDE LLC. The NMTC transaction closed on December 11th and will result in 40 total new homes, developed by Green Country Habitat for Humanity, Inc. in Tulsa, Oklahoma and United Housing, Inc. in Memphis, Tennessee. Both nonprofit housing developers are receiving a NMTC-funded loan to cover market and affordability gaps.

USB NMTC Fund 2025-8, LLC was the NMTC investor with support from U.S. Bancorp Impact Finance. Smith NMTC Associates, LLC facilitated the closing to maximize the project’s community benefits, provides the recapture guaranty, and will work closely with each developer on compliance and impact reporting over the 7-year compliance period. As part of Smith NMTC’s standard model to increase efficiencies, both projects were combined in one closing to share transaction costs and increase impacts.

Local Solutions for Meeting Housing Needs

Since 1994, United Housing, Inc. (UH), a NeighborWorks America organization, has been providing quality housing opportunities to western Tennessee residents through financial coaching, mortgage lending, home building and renovation, and creative partnerships with public, private and nonprofit entities. With a $3.75M NMTC loan (QLICI), United Housing plans to develop 17 homes across multiple neighborhoods in Memphis, TN. Almost all of the homes will be new except for one existing rehab. UH is developing a variety of homes to meet the varying needs of different households. Homes planned for the Whitehaven neighborhood will include 4 bed/2 bath configurations with attached carports, while those planned for the Orange Mound neighborhood will feature contemporary, open concept ranch-style homes of 3 bed/2 bath with stylish modern finishes and wheelchair accessibility. Hit hard by the foreclosure crisis in 2008, UH’s development in Whitehaven is designed to meet the needs of first-time homebuyers by increasing the supply of starter homes and designing mortgages with rates close to current rental rates. UH plans to sell all 17 homes to homebuyers earning 80% AMI or below, a goal that is supported further by downpayment and closing cost assistance, available through UH.

pictured above: brick home with welcome sign

Strengthening Community through Homeownership

Since 1988, Green Country Habitat for Humanity, Inc. (Green Country HFH) has partnered with organizations and families in its community to make housing affordable and sustainable to allow families in the Tulsa, Oklahoma, area to achieve the dream of homeownership. With a $3.25M NMTC loan (QLICI), Green Country Habitat for Humanity plans to develop 23 homes through new construction across 5 highly distressed census tracts. Most of the homes (14) will be part of the Whittier Townhome project, with the remaining 9 homes to be scattered development as infill on vacant lots. All the homes will be sold to households earning 80% AMI or below. The Whittier Townhomes stand proudly in Tulsa’s historic Kendall Whittier District, a community designated one of seven Oklahoma Certified Cultural Districts by the Oklahoma Arts Council. Home to iconic arts destinations such as Circle Cinema and the Church Studio, as well as Tulsa Girls Art School, the Tulsa Farmers’ Market and the Kendall Whittier Arts Festival, this area of Tulsa is bursting with creativity and community. The development will include 3 bed/2 bath townhomes with covered porches and garages. Energy Star-rated construction and professional landscaping enhance the quality and livability of the community.

This project contributes toward meeting the goals of Green Country HFH’s North Tulsa Initiative – a five-year plan that started in 2021 and aims to build 250 affordable homes in North Tulsa, home of the Historic Greenwood District. Through partnerships with the City of Tulsa, Tulsa-based corporations and local philanthropic funders, the initiative seeks to stabilize the local real estate market and empower families, to achieve generational wealth and improved well-being through homeownership. Green Country HFH is a member of the Housing Partnership Network, Inc., an award-winning business collaborative of 100+ of the nation’s leading housing and community development organizations.

pictured above: cream/yellow siding home with blue door

Homeownership is Economic Development

In addition to providing quality, affordable homeownership opportunities that support household stability and intergenerational wealth creation, the communities in which these projects are located benefit economically:

• Building and rehabbing homes for sale creates construction jobs and training opportunities, and bolsters businesses that support the construction industry.
• Quality affordable housing is necessary for workforce development – businesses and companies need housing for their employees.
• The construction and sale of homes improves the local economy through job creation, construction fees, property and sales taxes, and consumer spending because homeowners generally have more discretionary income than renters.
• Home equity is the largest asset households can leverage to start businesses, invest in training or higher education, and prepare for financial emergencies.
• Homeownership contributes toward better health and education outcomes, especially for children; and homeownership also promotes civic and social engagement.