Smith NMTC Associates, LLC announces the closing of its latest New Markets Tax Credit (NMTC) transaction to support the development of affordable for-sale homes with Habitat for Humanity affiliates in Tennessee, Missouri, and Arizona. The deal was structured and closed in partnership with the tax credit investor, U.S. Bancorp Community Development Corporation, and the Community Development Entity, Harbor Bankshares Corporation, who provided a $6.2M NMTC allocation. Habitat for Humanity affiliates in Memphis, Nashville, St. Louis, and Tuscon will each utilize $1,552,296 in NMTC financing to construct new affordable, single-family homes in distressed communities. All of the homes in each state will be sold to individuals earning below 80 percent of area median income (AMI).
“With this latest allocation, we are proud to continue our longstanding partnership with U.S. Bank and Habitat for Humanity affiliates,” shared Howard Smith, principal of Smith NMTC. “Since 2008, we have worked with these partners to expand homeownership access in communities lacking affordable homeownership opportunities. Each of these Habitat organizations has a legacy of impact in their communities and in restoring the possibility of homeownership to low-income families.”
With $6.2M in New Markets Tax Credits and additional financing, this deal will add 46 new affordable single-family homes across the three states, all in tracts where poverty and unemployment rates far exceed national averages. Smith NMTC structured the transaction and will continue to support each partner, providing financial and compliance consulting services during a seven-year compliance period. Habitat for Humanity affiliates work in partnership with low-income families to build decent, affordable homes. Through the sweat equity of partner families who invest hundreds of labor hours, homes are built and sold at affordable rates, often at no profit to the developer and without any interest charged to the buyer. Habitat affiliates offer additional support through mortgage financing and down payment assistance and through homebuyer education and financial counseling. There are more than 1,100 active Habitat for Humanity chapters in the United States.