Filling a Void: New Markets Tax Credits Finance New Health Care Clinic for Low-Income Persons in Cleveland

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Federal new markets tax credits are helping to finance the construction of a new health clinic in Cleveland, Ohio. The two-story, 30,000-square-foot facility, located in the city’s Central neighborhood, will be owned and operated by Care Alliance, a federally qualified health center that serves the homeless, public housing residents, and other underserved individuals.

Enterprise Community Investment, Inc., Enterprise Community Loan Fund, Inc., and Chase recently announced the closing of the new markets transaction.

The Central Neighborhood Clinic, currently under construction and expected to open by May 2015, will operate under the Patient Centered Medical Home model of care to bring much-needed health services to the community.

Enterprise Community Investment, Inc. is providing $10 million in new markets tax credit allocation. Chase is the NMTC investor. Enterprise Community Loan Fund has provided $5.4 million in bridge financing, while Care Alliance negotiated for the site and contributed $5 million in capital grant funding received from the federal Health Resources and Services Administration. Care Alliance has also launched a campaign to raise the remaining funds needed to build and operate the clinic.

Community Impact

“This project demonstrates the positive impact of New Markets Tax Credit funding on communities,” said Elaine DiPietro, Vice President, Structured Finance at Enterprise Community Investment. “This new health facility will help Care Alliance meet patient demand for medical services in the Central neighborhood. The need and delivery of health services will only increase with the full implementation of the Affordable Care Act.”

Central has the highest concentration of public housing in Northeast Ohio and limited primary care services. At full capacity, the new clinic will serve 13,000 low-income seniors, mothers, young adults, and children each year. With the addition of the new clinic, Care Alliance will double its staff, operating budget, and community benefit.

“Public housing residents are often confined to their neighborhoods by barriers like lack of transportation and limited income, making it so important to provide as many services as possible under one roof,” said Care Alliance CEO Francis Afram-Gyening. “This funding will allow space to provide comprehensive health services including medical, dental, behavioral health, and many other crucial supportive services to thousands of residents in need of care.

“Chase targets its NMTC investments to support projects that provide the highest level of positive community impact,” said Shawn Larson, Vice President of Chase’s New Markets Tax Credit Group, noting that the Cleveland clinic will meet this goal.