Enterprise, Nonprofit Finance Fund and Chase Invest in the Family Health Centers of San Diego to Build a New Community Health Center
New Markets Tax Credit financing deal closes for the nation’s second largest Federally Qualified Health Center
SAN DIEGO, Calif. – Enterprise Community Investment, Inc., Enterprise Community Loan Fund, Nonprofit Finance Fund (NFF) and Chase announce the closing of New Markets Tax Credit (NMTC) financing for the new construction of a three-story, community health center in San Diego serving the Diamond Neighborhoods.
The new 22,942-square-foot center will serve 12.800 patients annually, tripling the capacity of the existing Family Health Centers of San Diego (FHCSD) center in Diamond Neighborhoods. FHCSD is the largest Federally Qualified Health Center (FQHC) in the city and the second largest in the U.S. It provides services to low-income patients in large parts of central, south and east San Diego and surrounding communities in San Diego County.
Enterprise Community Investment, Inc. is providing $9 million in NMTC allocation with Chase providing the NMTC equity investment. Enterprise Community Loan Fund and Nonprofit Finance Fund are each providing $3.1 million in loans to bridge a portion of the U.S. Department of Health and Human Services, Health Resources and Services Administration’s $8.57 million capital grant. FHCSD is contributing the land for the project and more than $400,000 in cash to the project.
“This project demonstrates the positive impact of New Markets Tax Credits funding on communities. The new health facility will help revitalize a community and at the same time help meet patient demand for medical services in the Diamond Neighborhoods,” said Joseph Wesolowski, senior vice president, Structured Finance at Enterprise. “The need and delivery of health services will increase with the full implementation of the Affordable Care Act in 2014.”
Federally Qualified Health Centers are nonprofit community health centers that provide primary health care to low-income individuals and families regardless of insurance coverage or ability to pay. FQHCs are an important resource for delivering quality, affordable health care in low-income communities.
Construction on the new center began in November 2012 with expected occupancy in October 2013.
“The many health centers we work with are caught between the desire to meet rising patient demand and the challenge of inadequate financing or physical space. Through this deal, we are glad to be helping the second largest FQHC in the country have the space to better meet its patients’ needs,” said Norah McVeigh, managing director, Financial Services, for Nonprofit Finance Fund.
The new community health center will feature 29 exam rooms, 5 dental stations and 4,562 square feet of office and administrative space. At full capacity, the new center will more than triple the number of patients currently served, offering clinical services to more than 9,500 patients annually and provide office and community space to support additional health programs. The expanded FQHC will also add approximately 60 permanent jobs in the community. The building will have Cal-Green certification, the statewide green building standard.
“Access to high-quality and affordable healthcare is critical to encourage people to use cost-saving preventive healthcare services. Financing from Enterprise and our partners will make it possible for families living in the Diamond Neighborhoods to access these vital services near where they live and work,” said Lori Chatman, president, Enterprise Community Loan Fund.
Since 2012, a funding collaborative of Enterprise, Chase, and Nonprofit Finance Fund has provided “one stop” NMTC financing for FQHCs, including NMTC allocation, NMTC equity, term debt and bridge financing. FHCSD is the third FQHC capital project financed by the collaboration. Together these projects have expanded primary healthcare to low-income persons by creating 118,000 square feet of new health center, laboratory and pharmacy space, and will provide approximately 125,000 additional center visits to an estimated 33,000 additional patients every year.
“We are very excited to continue to use the New Markets Tax Credit program to support community healthcare centers. Chase targets its NMTC investments to support projects that provide the highest level of positive community impact. The Diamond center is expected to fulfill this goal by providing an underserved area of San Diego with access to primary healthcare services,” said Matt Reilein, head of Chase’s New Markets Tax Credit Group.
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Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For more than 30 years, Enterprise has introduced neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested more than $13.9 billion in equity, grants and loans to help build or preserve 300,000 affordable rental and for-sale homes to create vital communities. Visit www.EnterpriseCommunity.org and www.EnterpriseCommunity.com to learn more about Enterprise's efforts to build communities and opportunity.
Nonprofit Finance Fund (NFF) unlocks the potential of mission-driven organizations through tailored investments, strategic advice and transformative ideas. 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 $250 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.
Family Health Centers of San Diego is a federally qualified health center in San Diego that provides a full range of adult, child, dental, behavioral health, vision and pharmacy services through 33 sites and 3 mobile medical units. It was founded in 1970 as one of two free clinics for low-income persons in San Diego. FHCSD became an FQHC in 1995, and first obtained Joint Commission accreditation in 1996; it is now the second largest FQHC in the United States.
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.