Partnership to Fund Major Expansion of Community Health Centers Under Affordable Care Act
Enterprise, Nonprofit Finance Fund and Chase Provide One-Stop Access to Facility Financing as Centers are Charged with Doubling Capacity
NEW YORK and COLUMBIA, Md. – August 8 - As the Affordable Care Act takes hold, community health centers across the country are undertaking a colossal effort to build a public health infrastructure and improve care for millions of Americans. Nonprofit Finance Fund (NFF), Enterprise Community Investment, Inc. and Enterprise Community Loan Fund, Inc. (collectively Enterprise), and Chase have created a one-stop shop for Federally Qualified Health Centers (FQHC) to meet the complex challenges associated with paying for major facility projects as centers build capacity. FQHCs provide primary care to people with low incomes, regardless of their ability to pay, and are expected to double those served to 40 million by 2015.
“FQHCs provide front-line services to people in need – people who will benefit from improved comprehensive and preventative care that is ultimately more effective and less expensive than emergency care,” said Elaine DiPietro, vice president, Structured Finance, Enterprise. “This partnership gives FQHCs access to the experience, expertise, tax credit allocations and debt financing that make improved community health centers a reality.”
Today, Asian Health Services (AHS), the first of three projects supported by the partnership, celebrated the grand opening of its new health center in downtown Oakland, Calif. The new facility provides comprehensive primary care services—in English and ten Asian languages—to individuals in the City of Oakland and the County of Alameda.
Prior to the opening, AHS was overwhelmed with the demand for patient care and had a growing waitlist of more than 5,000 in need of services. The new facility expands capacity by over 30 percent, allowing AHS to serve 7,000 new patients annually. Construction is underway for two other facilities financed by the collaboration—Chase Brexton Health Services in Baltimore and Family Health Centers of San Diego— and additional projects have been selected for 2013 The partnership is also seeking new health center deals.
“Expanding facilities is directly related to increasing access to care and improving quality of care for our patients; the right physical structures enable a modern approach to full-service, preventative care that delivers better outcomes for patients while at the same time reducing costs,” said Sherry Hirota, CEO of Asian Health Services. “We’ve had a tremendous response to our new clinic and know that other health centers around the country – facing similar opportunities and pressures – will benefit from this partnership.”
The partnership leverages New Markets Tax Credits (NMTC), designed to galvanize investments in low-income communities; NMTC provides investors with tax credits totaling 39% of their investment in select projects, over a period of seven years. Nonprofit Finance Fund and Enterprise are planning to use a sizable part of their recent NMTC awards on FQHC projects and are actively seeking new community health center partners.
“This collaboration aligns with our focus of helping communities meet the growing and critical need for increased healthcare services,” said Matt Reilein, head of New Markets Tax Credits for Chase. “Not only do these centers provide essential medical services to community residents, but they are also sought-after employers and role models in the community.”
“We’re able to help health centers and investors capitalize on significant tax advantages while creating sustained value in underserved communities,” said Norah McVeigh, managing director of Nonprofit Finance Fund. “This is an example of how cross-sector partnerships and creative combinations of capital can unlock resources to create healthier neighborhoods and reduce care costs.”
Nonprofit Finance Fund (NFF) unlocks the potential of mission-driven organizations through tailored investments, strategic advice and accessible insights. Founded in 1980, NFF helps organizations connect money to mission effectively, and supports innovations such as growth capital campaigns, cross-sector economic recovery initiatives and impact investing. A leading community development financial institution with over $80 million in assets, NFF has provided over $285 million in loans and access to additional financing via grants, tax credits and capital in support of over $1.4 billion in projects for thousands of organizations nationwide. NFF is headquartered in New York City and serves clients from offices across the country. Visit nff.org to learn more.
Enterprise works with partners nationwide to build opportunity. We create and advocate for affordable homes in thriving communities linked to jobs, good schools, health care and transportation. We lend funds, finance development and manage and build affordable housing, while shaping new strategies, solutions and policy. Over more than 30 years, Enterprise has created 300,000 homes, invested nearly $14 billion and touched millions of lives. Join us at www.EnterpriseCommunity.com or
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.4 trillion and operations in more than 60 countries. Chase serves more than 50 million consumers and small businesses through more than 5,600 bank branches, 18,700 ATMs, credit cards, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships. More information about Chase is available at www.chase.com.