Health Center financing paves way for new jobs

Citi partnering to provide tax credit financing for new not-for-profit Mattapan medical facility

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Mattapan Community Health Center (MCHC) in Boston, Massachusetts, has got the go ahead after National Community Fund I (NCF), an affiliate of United Fund Advisors (UFA), and Citi Community Capital, the community development arm of Citi, partnered to provide tax credit financing for the new not-for-profit medical facility.

Citi and UFA structured the $33.8 million transaction: NCF provided $10.1 million of New Markets Tax Credit (NMTC) allocation, while Citi contributed $10 million of NMTCs and provided the tax credit equity and bridge financing. NMTCs provide tax credit incentives for equity investments in certified Community Development Entities that invest in low-income communities.

Additional funding included an $8.2 million grant from the Boston Medical Center, a $5.2 million loan from Citizens Bank, a $2.1 million capital campaign bridge loan from Boston Community Loan Fund, a $400,000 loan from the Environmental Protection Agency, and an $11.5 million ARRA Facility Investment Program grant from the Health Resources and Services Administration.

The long-awaited health center will replace MCHC's aging facility – more than doubling the space of the center by adding new exam rooms, dental stations, and space for mammography and behavioral health services. MCHC serves over 7,000 patients annually, most of them from Mattapan and the surrounding low-income communities.

The project will create at least 200 construction jobs and approximately 133 permanent new jobs. In addition, Mattapan Community Health Center will also seek Gold certification from LEED, an internationally recognized green building certification system for green building practices, and revitalize a blighted, vacant site.

"Providing additional healthcare services to communities with a critical need in a sustainably designed, built and operated facility is directly in line with UFA's mission," said Colin Rowan, Principal of UFA.

Guillermo Franco of Citi said, "The impact of the new center will be felt beyond the patients who use its services. In addition to the significant number of job opportunities created for low income residents by the construction of the health center, the development will help to revitalize a community that has seen little private investment to spur economic development."