Capital Fund Supports Health Center Expansions in Michigan and Arizona
Community Health Center Capital Fund (Capital Fund) recently participated in financial closings to support two health center capital projects as part of the Healthy Futures Fund 2.0 (HFF). Formed by the Local Initiatives Support Corporation (LISC), Morgan Stanley, and The Kresge Foundation, HFF is an initiative to improve community health by connecting health care and affordable housing for low-income residents.
On November 30, 2016, Capital Fund, in collaboration with Local Initiative Support Corporation (LISC), Morgan Stanley, and The Kresge Foundation, participated in financing the $15 million expansion of Family Health Center’s (FHC’s) new facility in Kalamazoo, MI. Capital Fund provided a $5.4 million NMTC allocation and $400,000 leveraged loan guaranteed in part by The Kresge Foundation. Funding for the Healthy Futures Fund project also included a NMTC allocation, NMTC-equity investment, and a leverage loan from Morgan Stanley; a leverage loan from LISC; a grant from Kalamazoo County; and FHC’s own cash investment. Upon completion in March 2017, the new 49,000 square-foot facility will allow the health center to service an additional 18,825 patients each year and add an additional 57 full-time employees by 2023. The new building will include 24 medical exam rooms and 25 dental operatory stations, with space to add 24 additional exam rooms in the future. Services will include family practice, pediatrics, dental, pharmacy, health care education, behavioral health, case management, community health education, physical therapy, and occupational therapy. FHC currently operates eight health centers in the Kalamazoo area and one in nearby Portage, MI. Learn more about the new Kalamazoo facility here.
Mountain Park Health Center in Tempe, Arizona
On September 2, 2016, Capital Fund, in collaboration with Local Initiative Support Corporation (LISC), Morgan Stanley, and The Kresge Foundation, participated in financing for Mountain Park Health Center’s $13.9 million purchase and renovation of a new facility in Tempe, AZ. Capital Fund provided a $650,000 leveraged loan guaranteed by the The Kresge Foundation for the Healthy Futures Fund project. Mountain Park also utilized a leveraged loan from LISC, a leverage loan and New Market Tax Credit (NMTC)-equity investment from Morgan Stanley, and Mountain Park’s own cash investment. Upon completion in early 2017, the new 32,000 square-foot facility will be over three times the size of the current building. This substantial growth will enable the Tempe clinic to increase patient capacity by 250%—an increase of 13,000 patients per year—and add an additional 33 employees by 2023. The new facility will also offer space for local law firms to provide pro-bono legal services as well as a recreation and outdoor gathering area for use by the community. Established over 30 years ago, Mountain Park operates seven additional health centers in neighboring areas of Goodyear and Phoenix, AZ. Learn more about the new Tempe facility here.