On Friday, Oct. 28, 2022, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund announced that it awarded $5 billion in New Markets Tax Credit (NMTC) allocations to Community Development Entities to revitalize low-income communities and increase economic opportunity nationwide. We are proud to announce that Community Health Center Capital Fund received a $55 million NMTC allocation.
107 Community Development Entities were selected for awards from 199 applicants that requested an aggregate total of $14.7 billion in tax credit allocation. Approximately 78% of these NMTC investment proceeds are estimated to be used to finance and support loans to or investments in operating businesses in low-income communities. The award recipients are located in 35 different states and the District of Columbia. Over 20% of the investments will be made in rural communities. These award recipients are estimated to make nearly $1 billion in NMTC investments in non-metropolitan counties.
Capital Fund recently provided $2 million in financing to San Ysidro Health (SYH) in National City, CA, to support its $52.9 million health center project, which will include the first FQHC PACE (Program of All-Inclusive Care for the Elderly) facility in the city and ultimately reduce barriers to mobility and health care that reduce elderly patients’ quality of life.
Additional financing for this project included a source loan from National Cooperative Bank, a direct loan to the Qualified Active Low-Income Community Businesses (QALICB), and a furniture, fixtures and equipment loan. The remaining funds will be provided through New Markets Tax Credit equity as well as cash provided by SYH.
The new site is projected to serve over 14,000 patients and generate over 41,000 clinic visits in its first year. Eighty seniors are expected to enroll in the PACE Program in its first year with full enrollment totaling 650 seniors by 2030. Additionally, San Ysidro’s project is expected to create 115 permanent jobs at the new site. Overall, SYH anticipates they will serve over 61,000 additional patients and generate almost 500,000 additional clinic visits while creating over 2,100 new FTEs across all locations by the end of the compliance period.
The first floor of the new facility will be dedicated to the PACE services and will include 10 medical exam rooms. The second floor will be an FQHC, providing adult medicine, OB/GYN, pediatrics, dental, behavioral health, chiropractic, diagnostic laboratory, pharmacy medications, diagnostic radiology, social and support services, and eligibility assistance. SYH will also be providing desperately needed dental services as current capacity is far below demand. Additionally, the project will include three levels of below grade parking totaling 88,325 square feet and 267 parking spaces. Construction began in August 2022 and is expected to be completed in April 2024.
San Ysidro Health was founded in 1969 by seven mothers, now referred to as the Founding Mothers, in search of medical services for their children. Today, the FQHC has 50 clinic and program sites throughout San Diego County including 24 standalone clinics, five school-based clinics, two mobile clinics, and 10 program sites providing medical, dental, behavioral, and specialty services to almost 100,000 patients through over 230,000 visits. Of SYH patients who reported their income, 95% live at or below 200% of the Federal Poverty Level. Learn more about SYH here >
Via Care Community Health Center, headquartered in East Los Angeles, CA, is a well-known safe haven to its community, welcoming those most vulnerable—particularly undocumented immigrants and low-income second and third generation Hispanic/Latino patients. Recently, Capital Fund provided a $4.5 million direct loan to support the health center’s $5.4 million expansion to relocate and centralize all administrative services to increase operating efficiency overall to better serve its patients.
In addition to Capital Fund’s loan, funding for this project includes a cash contribution from the health center and a participation loan from BlueHub Capital.
Via Care will move all of its administrative operations from three current locations into one new property, thereby increasing administrative coordination. While this property will be used for administration purposes only, the new building will prompt a series of critical moves that will ensure increased availability of clinical and case management patient services to the community. Via Care currently operates 14 primary care clinics, a school-based wellness center at Garfield High School, and a Behavioral Health office. The purchase will allow for expansion of Enhanced Case Management (ECM) services, a Medi-Cal paid benefit designed to improve case management of patients who are frequent emergency room visitors.
Via Care anticipates a 43% growth in number of patients and a 62% increase in number of visits by FY2028. The number of sites will decrease since the new building will house the administration staff. This frees up space at the other existing facilities to increase clinical and case management patient services.
Via Care was founded in 2010 to address increasing lack of access to healthcare for low-income residents of East Los Angeles. In 2021, Via Care provided 96,008 medical, dental, and behavioral health visits to 17,277 low-income adults and children, a 58% increase from 2020 despite a challenging year due to the pandemic. Last year, the organization provided services to 17,277 patients through 96,008 visits. Eighty-nine percent of patients served in 2021 identified as Latino/Hispanic, and 90% of patients reported their income as 100% below the Federal Poverty Line. Learn more about Via Care here >
Though the remote town of Hāna is best known for being nestled along the famously scenic Hāna Highway—one of the most beautiful drives in the world—few may be aware that many of its native residents are medically underserved due to financial, cultural, and geographical barriers. As the only primary health care provider in the Hāna District in Maui County, HI, Hāna Community Health Center Inc., (Hāna Health) provides much needed health care services to its isolated Hawaiian community, of which 88% of residents live at or below 200% of the Federal Poverty Level.
Capital Fund recently provided $2 million in financing to support Hāna Health’s nearly $6 million clinic expansion to provide new services such as physical therapy, behavioral health, and telemedicine, which will help the center better meet patient needs. In addition to Capital Fund’s loan, financing included equity from the following sources: a HRSA Health Infrastructure Investment Program Grant, The Harry and Jeanette Weinberg Foundation, a 2019 state grant, Hāna Health reserves, The McInerny Foundation, and Hāna community donations.
The new clinic will include space for behavioral and mental health services, physical therapy, complementary and traditional healing medicine, cardiac rehabilitation, and healthy lifestyle and physical fitness programs for the prevention and management of chronic health conditions. The new facility will enable Hāna Health to hire eight new staff members, which will be a combination of direct employees and contract staff. Construction is slated to be completed at the end of 2022.
In 2020, Hāna Health provided services to 1,664 patients through 5,876 visits with 20 FTEs. The additional services provided in the new space will allow the center to increase patients by 36% (2,258 total) and visits by 79% (10,500 total). Approximately half of its patients are Native Hawaiians, 38% are White, and 12% are other races. Learn more about Hāna Health here >
Capital Fund and Capital Link are excited to announce Rebecca (Becky) Regan as its new Chief Executive Officer, following the retirement of longtime CEO, Allison Coleman, after nearly 30 years leading both organizations. Ms. Coleman will stay on as CEO over the summer to assist Regan's transition into her new role, and Regan will take the helm officially on September 1, 2022.
“What inspires me most about Becky is her drive, her creativity and curiosity and her commitment to improving the lives of low-income community residents,” Coleman said. “She is mission-driven at her core and has a deep interest in healthcare, FQHCs, and the ways they can partner with others to address the social determinants of health,” added James W. Hunt, Jr., Board Chair of both organizations.
Regan brings 25 years of experience working in community development to drive social sector change, coming from a background in management, strategy, leadership, finance and capital raising. In addition to driving innovations in health and housing within a network of 100 non-profit housing organizations and CDFIs across the U.S. in her previous roles, she also has served on the Capital Fund Board of Directors since 2014.
"I am honored to have been chosen to lead Capital Link and Capital Fund at a time in which the need for the growth and development of community health centers has never been greater. The two organizations uniquely combine the intellectual capabilities, data and insights from consulting work and access to capital resources. This combination creates rare opportunities for catalytic impact in the high-need communities health centers serve. I am excited to bring my energy and passion to both organizations, building on a strong foundation to inspire a new vision for the future,” she said of her drive for elevating Capital Link's mission.
Regan's previous work experience includes nearly 10 years as Executive Vice President of the Housing Partnership Network in Boston, as well as serving as the President of the Loan Fund at BlueHub Capital (formerly Boston Community Loan Fund) in Boston, where she was responsible for setting strategy, hiring and managing a team of lenders and raising capital for lending.
Over her expansive career focused on community development, she has raised over $400M in debt, equity, and grants for non-profit housing developers, CDFIs and social enterprises. As an executive leader she helped drive the creation of a $35M fund raised to purchase defaulted mortgages in low-income areas and work with homeowners to renegotiate their mortgage terms to allow them to stay in their homes at affordable monthly payments.
Regan was brought on as CEO following a national search by Koya Partners, an executive search firm that specializes in leading mission-driven searches at the senior level.
Capital Fund recently provided financing for Neighborhood Health Centers of the Lehigh Valley (NHCLV)'s $3.87 million capital expansion in Allentown and Bethlehem, PA. NHCLV utilized Capital Fund's new LoanPLUS loan program, designed to meet the needs of smaller health centers and/or those with limited financial resources.
Financing for this project included a loan of $1,168,750 from Capital Fund, a loan of $956,250 from Community First Fund, and an NHCLV cash equity contribution of $1.46 million with an additional $601,074 in federal grant investments, including an American Rescue Plan Capital Projects Fund award. The loans are secured in part by a federal Loan Guarantee from the Health Resources and Services Administration.
For its Allentown renovation, NHCLV will renovate and expand the first floor of an existing 14,200-square-foot retail space into a similarly sized health center site. The construction will add 18 clinical and support rooms designed to facilitate team based care and health professionals’ education, triage/walk-in care, procedural rooms as well as a small dental pod and on-site pharmacy for the health center’s patients. The space will also include an education room and administrative support space.
The Bethlehem project will expand an existing site by 3,800 square feet in order to offer a full range of dental services, including preventative care, basic restorative including fillings, extractions, dentures, crowns and basic bridges as well as also adding an on-site pharmacy for the health center’s patients.
For more details about these NHCLV capital projects, click here.
Neighborhood Health Centers of the Lehigh Valley (NHCLV), the HRSA federally qualified Health Center Program Awardee in the area, operates four locations in Allentown, Bethlehem, and Easton, PA. Awarded this 330 Program designation in 2012, NHCLV serves the area’s low-income population. NHCLV offers a wide range of medical care including general well/sick care, pediatrics, behavioral health, and substance use disorder services. According to recent data of NHCLV's patients who reported their incomes, 67% were at 100% below the federal poverty line, 28% were between 101-200%, and 5% were over 200% below. Two-thirds of the health center’s patients are minorities, with 65% identifying as Latino/Hispanic and 78% preferring to receive care in a language other than English. Learn more about NHCLV here >
Has your health center had trouble accessing financing through commercial banks? Capital Fund’s new LoanPLUS loan program, designed to meet the needs of smaller health centers and/or those with limited financial resources, might be able to help.
The LoanPlus program provides loans with flexible collateral and repayment terms to meet the financing needs of FQHCs. Loans can range in size from $400,000 to $2,000,000 and can be used for cashflow, renovations, construction, refinancing of existing debt and/or the purchase of property. LoanPlus clients will also receive free annual technical assistance tailored to meet their needs.
As a LoanPLUS borrower, your organization will be eligible to receive one of the following reports from our affiliate Capital Link each year that your loan is outstanding:
In addition, you will also receive up to five hours of free consultation from Capital Link. LoanPLUS can be used in conjunction with NMTC financing and HRSA capital grants, particularly the American Rescue Plan - Health Center Construction and Capital Improvements (C8E) grants.
Community Health Center Capital Fund was recently awarded a $2 million program-related investment loan and a $150,000 grant from Opportunity Finance Network’s Finance Justice Fund to support its direct loan program. The award will enable Capital Fund to increase its capacity to offer affordable loans to Federally Qualified Health Centers (FQHCs) across the US for construction, renovation, and expansion of health center facilities and related equipment. As a key component of the primary care safety net in the United States, in 2020, FQHCs served almost 30 million patients annually, 58% of whom were racial and/or ethnic minorities, 30% of whom lived in rural communities and 91% of whom had low-incomes.
“Congratulations to Community Health Center Capital Fund for its Finance Justice Fund award. This capital will help address long-standing issues of disinvestment, the racial wealth gap, and persistent poverty in our country,” said Opportunity Finance Network (OFN) President and CEO Lisa Mensah. “CDFIs, like Capital Fund, and Finance Justice Fund partners and investors are helping to advance social, economic, and racial justice one loan at a time.”
Launched by OFN in 2020, the Finance Justice Fund is a new socially responsible investment that aims to bring $1 billion in capital from corporate and philanthropic partners to individuals and communities in America most underestimated and underserved by mainstream finance. Twitter was the Fund's first investor, followed this summer by Wells Fargo. The goal of the Finance Justice Fund is to drive affordable, responsible capital to Black, Latinx, Indigenous, and rural communities. To learn more about the Finance Justice Fund and view a full list of Fund partners and awardees, please visit OFN.org.
On July 2, 2021, Capital Fund closed financing for a $26.3 million renovation and relocation project for Grace Community Health Center, dba Grace Health, in Corbin, KY.
In addition to Capital Fund's $12.2 million New Markets Tax Credit (NMTC) allocation and $2 million source loan, funding for this project also included contributions from Primary Care Development Corporation, Local Initiatives Support Corporation (LISC), Forcht Bank, and Capital One. The project also utilized the HRSA Loan Guarantee Program (LGP) to provide additional security for the transaction.
Capital Fund's affiliate, Capital Link, provided NMTC advisory services to Grace Health and successfully attracted $20.2M of NMTC subsidization for Grace’s medical campus project, as well as the HRSA LGP.
Grace Health plans to renovate and transform an existing 88,000-square-foot building into a state-of-the-art medical campus. This project will allow Grace Health to better respond to unmet medical, dental, mental health and substance abuse treatment needs in Knox and Whitley Counties through consolidating four smaller satellite sites into the proposed larger facility. The resulting medical campus, which will have 32 exam rooms, will allow the health center to serve an additional 14,000 patients annually. Pre-construction began in November 2019 and construction is expected to finish in 2022. In total, Grace Health anticipates adding between five and seven providers and 15 support staff.
The expansion project is situated in a severely distressed rural neighborhood in Kentucky and the project's census tract/NMTC eligibility shows the poverty rate of this service area is at 29% and the unemployment rate is 1.35 times the national average. The region has suffered severe economic hardship as coal mining, once a significant industry, has decreased due to a national shift away from coal and toward other energy sources.
Grace Health is a Federally Qualified Health Center (FQHC) serving the southeastern Kentucky counties of Bell, Clay, Knox, Laurel, Leslie, and Northern Whitley. The health center currently has nine satellite clinics consisting of seven primary care clinics, a women's care facility, and a pediatric clinic. In addition, Grace Health operates 32 school-based health centers. Learn more here >