ATLANTA (Nov. 15, 2021) – Today, Enterprise Community Partners (Enterprise) announced a $10.5 million New Markets Tax Credit financing with the Atlanta Neighborhood Development Partnership (ANDP) to create 45 single-family homes in the Westside and Southwest neighborhoods of Atlanta. The homes will be affordable to and reserved for moderate- and lower-income families, helping to expand homeownership and wealth-building opportunities in historically Black communities close to the city center that have experienced decades of disinvestment and gentrification and, more recently, disproportionate harm from Covid-19.
“Homeownership is one of the most powerful ways to build long-term wealth and stability, but it remains out of reach for too many Atlanta families,” said Meaghan Shannon-Vlkovic, vice president and Southeast market leader, Enterprise. “Bringing together mission-driven local partners and critical funding through New Markets Tax Credits will create once-in-a-generation opportunities for dozens of families and show that intentional investments can lead to meaningful and lasting change in Atlanta.”
ANDP will create 25 homes in Southwest Atlanta and will partner with Westside Future Fund to build or renovate 20 additional homes in the Westside. In many of the neighborhoods that will see housing developed through this investment, homeowners make up less than 10% of all households. The 45 homes will be sold to families earning less than 120% of the area median income (AMI), and at least 20% of the homes will be specifically target households earning less than 80% AMI. Sale prices are expected to range from $185,000 to $245,000. ANDP and Westside Future Fund will also provide down-payment assistance to some prospective homebuyers.
“New Markets Tax Credits are one of few critically needed subsidy sources for affordable housing that also provides family stability and wealth building through homeownership. Enterprise has been an amazing on the ground partner in Metro Atlanta supporting non-profit production scale,” said John O’Callaghan, ANDP President and CEO.
“Access to New Markets Tax Credits help WFF deliver more affordable housing through our Home on the Westside program,” said John Ahmann, President & CEO of Westside Future Fund. “As land prices continue to escalate, we will continue collaborating with Enterprise, ANDP and other partners to address the urgent need for affordable housing in our footprint. We know that providing quality, affordable housing in underserved areas creates and preserves economic mobility leading to community revitalization.”
Home equity is a proven way to build wealth and spur upward mobility. A 2019 study of ANDP homebuyers showed that families gained an average of $89,000 in home equity in the first five years of homeownership through payment of principal, down payment assistance awards, sweat equity, and market appreciation. In a 2021 update of the study, wealth from home equity increased to $135,401.
The project will also create approximately 130 predevelopment and construction jobs. The jobs will pay above the living wage for the area and will provide benefits such as health insurance and retirement to local workers. At least 30% of the construction contracts will be awarded to construction firms led by people of color.
The construction and rehabilitation of the 45 homes is scheduled to be completed by 2023.
About Atlanta Neighborhood Development Partnership, Inc.
A chartered member of NeighborWorks, Atlanta Neighborhood Development Partnership is a nonprofit organization that develops, finances and advocates for affordable housing at a scale that promotes racial equity and healthy communities where families thrive. Now in its 30th year, the organization aims to further reduce the Black homeownership gap and increase access to affordable rentals with its "Closing the Gap: 2,000 units by 2025" campaign. Connect at www.andpi.org.