New Markets Tax Credit Funding to Aid St. Aloysius Orphanage and Create Jobs

New Markets Tax Credit Funding to Aid St. Aloysius Orphanage and Create Jobs

Finance Fund, Consortium America, and U.S. Bank announced today that financing is in place for St. Aloysius Orphanage’s $19.5 million renovation of its historic main building and the Glad House, as well as the development of a multi-story addition. This financing will allow St. Aloysius Orphanage—a Cincinnati-based independent, non-denominational social service agency—to enhance its ability to serve disadvantaged youth and their families, while adding both permanent and construction job opportunities.

This public-private collaboration was made possible through the use of multiple state and federal community development programs including the State of Ohio Historic Tax Credit Program and the New Markets Tax Credit (NMTC) Program, which encourages the investment of private capital into designated low income communities to spur community and economic revitalization. Finance Fund, an Ohio nonprofit financial intermediary, and Consortium America, a nationally recognized Community Development Entity (CDE), committed $19 million of NMTC allocation authority to finance the project, which will generate $7.4 million of tax credits over a seven-year period. U.S. Bank served as lender and NMTC equity investor.

In its work to assist families with children who suffer from mental and behavioral health problems, St. Aloysius currently serves 600 children. It is estimated that renovations will allow the Orphanage to increase its capacity and serve an additional 200 children. The project will also enable St. Aloysius to retain 160 full time positions, create 25 additional full time positions within two years after the project is completed in 2013, and produce 200 construction jobs while preserving a National Park Service historical site.

"Finance Fund is pleased to provide St. Aloysius the funding needed to continue to provide critical services to children and families in need in the greater Cincinnati region," said James R. Klein. Finance Fund Chief Executive Officer. "Ensuring that families have access to the critical educational, mental health and other specialized programs that strengthen the well-being and increase their quality of life is at the heart of our mission."

St. Aloysius is a social service agency serving disadvantaged youth and their families. Counselors, therapists, teachers and caseworkers provide care and guidance to these high-risk children. It is the only organization to provide multi-service treatment of foster and residential care, mental health case management and therapy to children in the Cincinnati area. St. Aloysius is located on a 7+ acre site in Bond Hill, a suburban neighborhood of Cincinnati. The campus includes five buildings, including the main building – which dates from 1856 – and the Glad House, which is connected to the rear central wing of that facility. The financing will help restore and renovate these two buildings. The administrative building will undergo major interior renovation including upgrades to handicap accessibility, sprinkler systems, and a new roof, while the Glad House will be renovated and include the addition of 12,000 square feet of classroom space.

About St. Aloysius Orphanage

St. Aloysius Orphanage (http://www.staloysiuscincinnati.org/) was founded as a traditional orphanage in response to the cholera epidemic in the early 1800’s. Today, St. Aloysius serves as a pro-active resource for children and families in the Greater Cincinnati area through diverse educational, mental health and other specialized programs that strengthen well-being and promote life success.

About Consortium America

Consortium America, LLC, (CA) is a nationally certified Community Development Entity based in Washington, DC. CA is controlled and managed by the Trammell Crow Company. Since 2004, CA has been awarded $425 million in New Markets Tax Credits allocation. CA uses its NMTC allocation to make debt and equity investments in large-scale new construction and redevelopment projects – including retail, industrial, mixed-use, office and community facilities – that have the potential to serve as “anchors” or transformational projects in low-income communities,. CA targets its resources towards the most distressed of NMTC-eligible census tracts and seeks to create alliances with local job training and pre-apprenticeship programs.

About Finance Fund

Finance Fund (http://www.financefund.org) bridges the funding gap between the investment community and organizations serving low income communities throughout Ohio. Since 1987, Finance Fund and its affiliates have invested more than $170 million in housing, economic development, and community facility projects leveraging over $905 million. Partnerships have enabled low-income people access to 15,422 units of affordable housing, 11,843 full-time jobs, and 3,036 early care and education spaces (classrooms) for 69,497 children benefiting the lives of over 119,400 Ohioans.

About the New Markets Tax Credit Program

The NMTC Program is administered by the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of the Treasury. Enacted by Congress in 2000, the NMTC Program encourages the investment of private equity capital into low income communities and, in exchange, allows investors to receive federal tax credits equaling 39 percent of the investment over a seven-year period. These investments are made to spur community and economic revitalization. The NMTC statue requires that investments be located in census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median according to 2000 Census data. To date, NMTC investments of $15.5 billion have generated a total of $50 billion in capital that has been invested in some of the nation’s most underserved communities. For more information, visit www.cdfifund.gov.

About U.S. Bank

With $321 billion in assets as of June 30, 2011, U.S. Bancorp is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,086 banking offices in 25 states and 5,086 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at www.usbank.com.

Marketing Works
Bethany Cramer, 614-540-5520
Email: cramerb@marketing-works.net