Former Bronx Army Reserve Center to Become Transitional Work Center
The Doe Fund Will Develop Transitional Work and Residential Center through New Markets Tax Credit Program
NEW YORK — A decommissioned Army Reserve site in the Bronx will become a transitional work and residential center for New Yorkers in need, announced The Doe Fund, a thirty year old New York City-based nonprofit organization which provides transitional and supportive housing, job training, and paid work for individuals recovering from homelessness, poverty, and incarceration.
The site, conveyed by the Department of Defense through the City of New York, will undergo a complete renovation of its 50,000 square feet prior to operations mid-2016. The redevelopment is financed through the federal New Markets Tax Credit (NMTC) Program.
Citi Community Capital, a nationally recognized leader in the financing of affordable housing and community investment projects, has provided $9.5 million in NMTC allocation. Citi will also serve as the sole construction and permanent lender and acted as tax credit investor for the transaction.
Phoenix-based community investment firm DV Community Investment (DVCI) provided an additional $6 million in allocation.
Vincent Ravaschiere, President of New Markets Capital Company, was NMTC advisor to The Doe Fund, identifying, negotiating, and securing the $15.5 million in credit allocation.
“What a transaction of this scale and complexity shows is the incredible impact that the private and public sectors can have, when we all work together,” said George T. McDonald, founder and president of The Doe Fund. “This site will serve not only as a beacon of hope and opportunity for the thousands of people served there, but for the entire city, as a prime example of what’s possible when we invest in the communities that need it most.”
Jim Howard, CEO of DVCI, echoed McDonald’s emphasis on the collaborative, synergistic success of the transaction, remarking that “combining New Markets Tax Credits with conventional debt financing for the conversion of a former military facility presented unique challenges, which would not have been overcome without the strong collaboration of the financing team with The Doe Fund and the City of New York. DVCI’s mission to utilize New Markets Tax Credits to create employment opportunities for the hard to employ and underemployed dovetails perfectly into The Doe Fund’s primary objective to change lives of the formerly homeless through employment opportunities and job training.”
Richard Gerwitz, Co-head of Citi Community Capital, hailed the project as a major achievement in the fight to end homelessness in New York City. “We often talk about the extraordinary challenges we face as a society with homelessness,” he said. “We strongly believe in this initiative and are proud to play a part in helping turn this decommissioned military facility into a place where formerly homeless individuals can find both shelter and job training.”
The redevelopment of the center will create approximately 100 temporary construction jobs and 75 permanent positions for the facility’s day-to-day operations. Construction begins in March 2015 and is expected to be complete July 2016.
ABOUT CITI COMMUNITY CAPITAL
Citi Community Capital (CCC) is a premier financial partner with nationally recognized expertise in financing all types of affordable housing and community reinvestment projects. CCC’s origination, structuring, asset and risk management staff across the country provides creative financing solutions designed to meet their clients’ needs. CCC helps community development financial institutions, real estate developers, national intermediaries and nonprofit organizations achieve their goals through a broad, integrated platform of debt and equity offerings. Additional information may be found at www.citicommunitycapital.com.
ABOUT DV COMMUNITY INVESTMENT
DV Community Investment, LLC (DVCI) is a highly experienced, mission-driven CDE, which has received four successive New Markets Tax Credit allocations, totaling $220 million. DVCI is committed to the renewal and revitalization of low-income communities in both rural and urban areas, with a particular emphasis on Arizona, California, Georgia, Louisiana, Mississippi, Nevada, New Jersey, New York and Ohio.
DVCI’s focus is on highly catalytic transactions which create quality jobs, resulting in sustained, broad community impact. In total, 2,217 quality, permanent jobs have been created with DVCI’s allocation received to date, as well as 2,789 construction jobs.
For more information about DVCI, please visit www.dudleyventures.com.