The Smith NMTC Associates team is excited to announce the closing of a $16 million New Markets Tax Credit (NMTC) transaction in support of four different Habitat for Humanity affiliates: Tacoma/Pierce County Habitat for Humanity, Habitat for Humanity of East Jefferson County in Washington, Habitat for Humanity of the Charlotte Region, Inc., and Twin Cities Habitat for Humanity.

Each organization will receive $4 million to drive the construction of for-sale affordable homeownership projects. The project was supported by investments from U.S. Bancorp Impact Finance.

Learn more about these projects below and follow us on social media for updates on these projects.

Tacoma/Pierce County Habitat for Humanity

Since 1986, Tacoma/Pierce County Habitat for Humanity, a Washington nonprofit organization, has helped families achieve the dream of homeownership. More than just a roof, the organization believes a home is just the beginning—a strong foundation for vibrant communities, a stable financial future for generations, and a healthy place for children to grow.

About the Project

With a $4 million NMTC allocation, Tacoma/Pierce County Habitat for Humanity plans to develop 19 townhomes in three distressed communities in Pierce County. The average home sale price in Pierce County is well above $500,000, leaving first-time homebuyers entirely priced out of the market.

To impact more families, Tacoma/Pierce County is transitioning away from single-family residences to townhomes. It plans to build eight townhomes in Madison Meadows, eight in American Lake Townhomes, and three in Proctor Place.

The townhomes will be approximately 1,300 square feet and 100% will be sold to low-income families earning under 80% AMI.

• Poverty rate: 39.90%
• AMI: 38.91%
• Unemployment rate: 25.60% — 3.06x the national average

Learn more about Tacoma/Pierce County Habitat for Humanity here.

Habitat for Humanity of East Jefferson County

Since 1998, Habitat for Humanity of East Jefferson County has partnered with people who need a decent and affordable place to live. Fueled by a mission of bringing people together to build homes, communities, and hope, East Jefferson helps families realize the dream of homeownership.

About the Project

With a $4 million NMTC allocation, East Jefferson plans to develop 17 properties in Port Townsend, Washington, in two non-metro census tracts and sell 100% to homeowners earning under 80% AMI.

Port Townsend is located on the site of traditional seasonal grounds of two Indigenous groups whose descendants remain part of the community. Historically, Port Townsend had exclusionary housing laws targeting Indigenous people—and a history of racist practices towards Asian-American immigrants who moved to the Puget Sound region in the 19th century.

Today, the historical legacy of housing discrimination remains pervasive: Pacific Islanders have a homeownership rate of just over 30 percent and Native Americans have a homeownership rate of under 65 percent compared to more than 75 percent of white residents.

Learn more about the East Jefferson Habitat for Humanity here.

Habitat for Humanity of the Charlotte Region, Inc.

Habitat for Humanity of the Charlotte Region was founded in 1983 by a group of seven local churches with a vision to create a world where everyone has access to safe and affordable homeownership.

The organization has always believed in the power of homeownership and has remained a top Habitat for Humanity affiliate and one of the area’s premier providers of affordable homeownership and home repair solutions, serving more than 4,000 families through new homes, home repairs, and financial literacy programs.

About the Project

With a $4 million NMTC allocation, Charlotte plans to develop 39 homes in the Meadows at Plato Price. This area is a historically significant area of West Charlotte with the Plato Price School a centerpiece of a thriving Black neighborhood in 1937. The school closed in the 1960s during desegregation and remained vacant for decades.

Today, the Meadows at Plato Price will rise as a thriving community and served as the site for the recent 2023 Jimmy and Rosalynn Carter Work Project—which brought volunteers from all over the world to work side-by-side with partners, supporters, and future homeowners to build homes.

Jill Gilbert and Donna Smith from Smith NMTC were thrilled to be able to join the efforts and spend a day on-site at the build last month. This effort will also mark the official return of the Carter Work Project after a three-year hiatus due to the COVID-19 pandemic.

Only 26% of people living in West Charlotte own their home compared to the rest of Mecklenburg County, where the rate is more than double at 57 percent. All homes built will be sold to low-income homeowners earning under 80 percent AMI.

• Poverty rate: 72.19%
• AMI: 22.92%
• Unemployment rate: 25.40% — 3.06x the national average

Learn more about the Habitat for Humanity of the Charlotte Region here.

Twin Cities Habitat for Humanity, Inc.

Since 1985, Twin Cities Habitat for Humanity, Inc., has helped more than 1,500 Minnesotan families achieve their dream of homeownership. As the only developer in the area focused on building homes for traditional purchase by low-income buyers, Twin Cities is actively addressing its mission to expand affordable homeownership and advance racial equity in housing.

The Twin Cities region suffers from some of the worst racial disparities in homeownership rates across the country—with a gap of 36 percent between white and Black families, compared to 28.6 percent nationally.

Fueled by the legacy of housing discrimination, only 41% of Minnesota households of color own their own homes. This, paired with the increase of property values in the area, has resulted in displacement and housing cost burden for many families.

About the Project

With a $4 million NMTC allocation, Twin Cities plans to develop the Harrison Townhomes project—a three-building, 17-unit new construction townhome project in the Harrison neighborhood located west of downtown Minneapolis.

The site is located on the western edge of the Bassett Creek Valley Redevelopment Area. Recent redevelopment in the area has started replacing aging housing stock with commercial spaces and multifamily rental housing. This loss of existing housing—and the associated increase in property values and property taxes—are making the neighborhood increasingly unaffordable for existing residents.

As a result, the community requested permanently affordable homes in the mix of the Bassett Creek Valley Redevelopment Plan. Twin Cities partnered with City of Lakes Community Land Trust to develop the property and address the community’s calls for affordable homeownership.

All units will be sold to low-income homeowners under 80% AMI—with 10 of the units planned to be restricted to a maximum of 60% AMI.

In addition, Twin Cities will require homeowners to take homebuyer education and financial education classes, and will provide continued homeowner support to drive long-term success.

• Poverty rate: 32.70%
• AMI: 36.55%
• Unemployment rate: 5.40% — .65x the national average

Learn more about the Twin Cities Habitat for Humanity here.

About Smith NMTC Associates

In 2007, Smith NMTC Associates pioneered the use of New Markets Tax Credits (NMTCs) for affordable homeownership development—transforming communities and the lives of families throughout the United States.

Today, we help CDEs and nonprofit developers leverage the NMTC program to increase access to for-sale affordable housing and community facilities.

We partner with mission-driven and like-minded organizations to expand the impact of NMTCs on affordable homeownership opportunities. We’d love to discuss how you can use the NMTC program to further serve your community and your constituents. Learn more about how we can help here.