In the summer of 2015, the Chicago Community Loan Fund received its first New Markets Tax Credit (NMTC) Allocation from the Community Development Financial Institution (CDFI) Fund. CCLF was awarded a $15 million allocation which it deployed in three diverse, transformative and exciting projects in three different Chicago neighborhoods. CCLF provided $5 million of NMTC allocations in each of the three projects.
In its first project, CCLF helped provide equity in Trianon Lofts, an apartment building developed by Preservation of Affordable Housing, Inc. (POAH) in the Woodlawn neighborhood. Trianon Lofts broke ground in July 2016, and when completed, the building will have 24 two-bedroom apartments and provide 7,000 square feet of commercial space on the ground floor. Thirteen of the apartments will be reserved for those earning between 80 to 120 percent of area median income – as low as $49,200 for a family of two.
The building is located directly across from MetroSquash’s new recreation and education facility and adjacent to the University of Chicago’s Medical Center campus. Trianon Lofts also received funding from the U.S. Department of Housing and Urban Development; City of Chicago; JP Morgan Chase Bank; BMO Harris; and Local Initiatives Support Corporation.
Rendering of Trianon Lofts – Image from POAH
“By bringing a mix of market-rate apartments and new retail space to a long-underserved community, Trianon Lofts is central to POAH’s Woodlawn revitalization efforts in the Cottage Grove corridor,” said Bill Eager, Vice President, Chicago Area of POAH. “Without CCLF’s vision, confidence and New Markets credits, this deal never would have happened.”
In its second project, CCLF used its NMTC allocation to help finance Erie Family Health Center’s (EFHC) buildout of its Patient Access Center and improvements and expansion of EFHC’s Teen Health Center, both located in the Humboldt Park neighborhood. The Patient Access Center will house a call center, medical records and referral departments and will serve as the primary entry point of over 70,000 patients and health care partners accessing Erie’s medical and ancillary services. The expanded Teen Center will serve the unique health care needs of youth and teens.
CCLF’s final $5 million of NMTC allocation was deployed to renovate an existing 36,000 square foot building to be used by After School Matters for after school and summer programming for teens in the Belmont Cragin neighborhood. The building is called the Michael and Karyn Lutz Family Center, and the building will serve approximately 1,000 teens every year.
“Bank of America Merrill Lynch is pleased to provide financing through a NMTC investment and Banc of America CDE allocation to help renovate After School Matters,” said Marie Cervay, Vice President of Community Development Banking at Bank of America Merrill Lynch. “Building strong communities is central to the bank’s purpose, and this new facility will provide after-school and summer programming for under-resourced high school teens, investing in their long-term success.”
“Our collaboration with Chicago Community Loan Fund, who provided the majority of the NMTC allocation for the renovation, was essential to this project’s financing,” said Ms. Cervay. “As a new NMTC partner, we are pleased to serve our shared goals of supporting community development to benefit low income neighborhoods, families and individuals.”