Community Hospitality Healthcare Services receives $65 million NMTC Award
Englewood, FL July 15, 2020
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 2019 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 sixth successful application submitted by CHHS into the highly competitive NMTC Program. Only 37% of applications were awarded in the nationwide contest.
“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.
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. From 2014 through the date of the 2019 NOAA, CHHS funded 28 projects totaling more than $596MM in project costs, which supported 4,713 permanent positions and provided access to quality affordable healthcare and extended services to more than 434,000 low-income community residents annually.
With today’s award announcement, the NMTC Program has awarded $61 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 to the NMTC Coalition, measuring impacts during the period from 2003 and 2015, the program has and supported over 5,400 businesses, resulting in the creation or retention of more than 1 million jobs, and the construction or rehabilitation of more than 164 million square feet of commercial real estate.
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.