Community Hospitality Healthcare Services receives $40 Million NMTC Award
(Placida, FL) October 28, 2022
Community Hospitality Healthcare Services (CHHS) is pleased to announce being awarded $40 million in New Markets Tax Credit (NMTC) allocation authority by the U.S. Department of the Treasury’s CDFI Fund from the 2021 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 eighth successful application submitted by CHHS into the highly competitive NMTC Program. Approximately half of applicants were awarded in this allocation round.
“CHHS is deeply appreciative of the CDFI Fund’s continued support of our mission to improve access to health services in underserved communities.” said CHHS founder and Executive Director Ben Cirka. “As has been so apparent during the pandemic, our healthcare infrastructure is under-resourced. This is particularly true in medically underserved rural and urban communities. NMTC provides the low-cost, flexible capital that is so critical to financing access to healthcare services in underserved communities in our nation.”
With today’s award announcement, the NMTC Program has awarded $71 billion. Historically, NMTC awards have generated $8 of private investment for every $1 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 2021, 277 projects totaling $6.1 billion in total investment received $3.2 billion in NMTC allocation.
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 44 projects in 23 states, using the federal allocation, 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.