Community Hospitality Healthcare Services receives $65 Million NMTC Award
(Placida, FL) September 1, 2021
Community Hospitality Healthcare Services (CHHS) is pleased to announce being awarded $65 million in New Markets Tax Credit (NMTC) allocation authority by the U.S. Department of the Treasury’s CDFI Fund from the 2020 allocation round. CHHS is a Community Development Entity (CDE) with a primary mission of financing high impact, mission-focused healthcare projects in low-income communities.
Today’s announcement marks the seventh successful application submitted by CHHS into the highly competitive NMTC Program. Less than half of applicants were awarded in this allocation round.
“CHHS exists to help improve access to health services where it is most needed. NMTC has proven to be one of the most effective funding tools to make projects successful, to help achieve our mission, and to improve community healthcare outcomes for thousands of residents across the nation,” said CHHS founder and Executive Director Ben Cirka. “Healthcare infrastructure throughout the nation has been placed under tremendous strain during the pandemic. These resources will be used to support critical capital needs in our nation’s most disadvantaged rural and urban communities, providing the necessary gap capital the provider’s sorely lack.”
With today’s award announcement, the NMTC Program has awarded $66 billion. Historically, NMTC awards have generated $8 of private investment for every dollar invested by the federal government with over 75% placed in the nation’s most distressed communities. According the NMTC Coalition’s 2020 Progress Report, in 2019, 288 projects totaling $4.5 billion received $2.7 billion in NMTC allocation (at a cost to the federal government of $679 million).
CHHS specializes in investing in healthcare businesses and healthcare infrastructure nationwide. The CDE offers flexible financing to projects located in medically underserved low-income communities throughout the U.S. CHHS has funded 40 projects in 21 states totaling more than $606MM in project costs, which supported 4,036 permanent positions and provided access to quality affordable healthcare and extended services to more than 233,000 low-income persons annually, serving both urban and rural locales with a median across all projects of over 75% placement in majority minority communities.
The New Markets Tax Credit program was created in 2000 in an effort to stimulate private investment and economic growth in low-income neighborhoods that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities.