Smith NMTC Announces Closing of $24M of The Housing Partnership Network’s $45M NMTC Allocation to Three HPN Member Organizations
The Smith NMTC Associates team is excited to announce the closing of a $24 million Housing Partnership Network (HPN) New Markets Tax Credit (NMTC) transaction providing three separate NMTC loans of $8M each to Better Housing Coalition, Community Asset Preservation Corporation, and DreamKey Partners (formerly known as Charlotte-Mecklenburg Housing Partnership). U.S. Bancorp Community Development Corporation was the investor in the transaction.
About Better Housing Coalition
A Virginia nonprofit, Better Housing Organization is a leader in community revitalization and collaboration with local residents, government, and agencies to create positive and sustainable change. Since 1988, BHC has invested a total of $200 million into Greater Richmond.
BHC will use its NMTC funding to develop 20 units of the Armstrong Renaissance Project—a large-scale redevelopment of the former Armstrong High School located in north Church Hill. In 2015, the Richmond City Council adopted a plan authorizing the redevelopment of the site to include up to 300 residential units, a large community building, and expansive open space.
Now in the final phase of the redevelopment, BHC is focused on developing 36 for-sale homes—20 of which will be funded by this loan. The vision for the community is to create a mixed-income development with a range of price points for buyers between 60% and 120% AMI. The project also will have homes specifically reserved for first-time homebuyers at or below 80% AMI, who will receive $15,000 in downpayment assistance and closing costs.
This site is located in a highly distressed census tract:
- Poverty rate: 19.90%
- AMI: 43.83%
- Unemployment rate: 12.20%, 1.47x the national average.
About the Neighborhood
Church Hill is one of the oldest residential neighborhoods in Richmond and it has faced fast-paced gentrification throughout the past decade. The neighborhood experienced great economic disinvestment during the period of desegregation, affecting Black residents disproportionately and creating even greater racial disparity.
Vacant and abandoned properties have started attracting investors and new residents, increasing property prices, and threatening housing stability for long-time residents. The development of Armstrong Renaissance will ensure that affordable for-sale homes remain an option in Church Hill.
Learn more about Better Housing Coalition here.
About Community Asset Preservation Corporation
Community Asset Preservation Corporation (CAPC) is a New Jersey nonprofit focused on leveraging partnerships with local nonprofits and minority contractors to build and complete real estate projects in underserved communities. Since 2009, CAPC has acquired over 2,130 housing units for redevelopment.
CAPC will develop approximately 26 homes in various areas of New Jersey with its NMTC funding. The areas include Atlantic City, East Orange, Newark, New Brunswick, North Bergen, Paterson, and Trenton.
Because of rising competition from investors and a decreasing supply of for-sale housing in New Jersey, many local residents face significant barriers to homeownership. To effectively combat many of these challenges, CAPC is focused on increasing the stock of quality affordable housing—and providing wealth-building opportunities for families across New Jersey.
These quality, affordable for-sale homes will all be designed for low-to-moderate-income families and located in highly distressed QCTs.
- Poverty rate: As high as 43%
- AMI: As low as 28%
- Unemployment rate: As high as 3.70x the national average
Learn more about CAPC here.
About DreamKey Partners
For over 30 years, DreamKey Partners has worked to bring affordable housing to Charlotte, North Carolina. By expanding the availability of affordable homes through significant real estate development, homeownership programs, and community engagement, DreamKey builds and rehabs multi- and single-family homes, provides homeownership education, organizes lending and community engagement programs, and revitalizes neighborhoods.
DreamKey plans to develop the Aveline at Orange Street project in the Grier Heights neighborhood with its NMTC funding. This 18-unit townhome development is located in a highly distressed census tract:
- Poverty rate: 60.70%
- AMI: 21.07%
- Unemployment rate: 33.90%–4.08x the national average
The townhomes will be located within five buildings. Each 1,550-square-foot unit will include three bedrooms and 2.5 baths with a two-car garage. All of the townhomes will be sold to low-income buyers.
About the Neighborhood
Grier Heights was established near the affluent Myers Park and Cotswold neighborhoods. Due to its proximity to affluent neighborhoods, Grier Heights offers easy access to many nearby amenities.
Like many other inner city neighborhoods of Charlotte, Grier Heights faces hyper-gentrification: More than 85% of the homes are renter-occupied and with an emerging population of millennials, the Grier Heights community is threatened by increased gentrification and displacement of former residents. The DreamKey project addresses the community’s crucial need for quality, affordable for-sale homes.
Learn more about DreamKey Partners here.
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