CAHEC New Markets, a New Markets Tax Credit (NMTC) Community Development Entity, has announced $40,000,000 in NMTC allocation to three community development projects in Florida, Tennessee, and North Carolina. The investments target early childhood education, family services, and rural healthcare, demonstrating how targeted tax credit financing can address critical needs in low-income communities. The NMTC program incentivizes private investment in distressed areas, and these projects illustrate the program's potential to spur long-term community revitalization.
The first investment of $11,000,000 supports Childcare Resources' new early learning campus and resource hub in Vero Beach, Florida. The campus will replace a leased facility and expand programming from infancy through second grade, featuring a 16-classroom lab school, therapy rooms, and a professional development incubator for educators. This expansion increases capacity by 36%, allowing the organization to serve 200 students annually, 85% of whom are low-income, with 20 seats reserved for children experiencing homelessness. The incubator will also train 300 educators annually, 74% of whom are low-income. The project is expected to create 13 new jobs and retain 50 existing positions, addressing both educational disparities and economic opportunity in the region.
The second investment of $15,000,000 was provided to Knoxville's Community Development Corporation (KCDC) to support the Transforming Western Heights plan, a 70-acre U.S. Department of Housing and Urban Development Choice Neighborhood development. This includes over 700 affordable and mixed-income rental housing units. The NMTC financing supports construction and renovation across a 35,195 square-foot campus, including expanding an existing Boys & Girls Club, upfitting clinic space for the University of Tennessee Medical Center's Primary Care Clinic, and constructing a new Connections Building that will house Real Good Kitchen and Junior Achievement of East Tennessee's Entrepreneurship Center, alongside an adjacent public park and plaza. Once complete, the project is projected to serve more than 6,000 community members annually, 80% of whom are low-income, through expanded youth programming, healthcare access, culinary job training, entrepreneurship support, and food security initiatives. It is expected to create 105 construction jobs and 40 new permanent positions, providing a comprehensive approach to community development.
The third investment of $14,000,000 supports FirstHealth of the Carolinas' construction of a new two-story, 40,956-square-foot critical access hospital in Troy, North Carolina. This facility will replace the Montgomery Memorial Hospital built in 1949 and deliver more efficient emergency services, rehabilitation, and therapy services to a rural, medically underserved community. Once complete, the hospital is projected to serve approximately 14,000 patients annually while creating 166 construction jobs and retaining 136 full-time positions. This investment is crucial for ensuring access to quality healthcare in a region where such services are scarce, highlighting the role of NMTC in addressing healthcare disparities.
"All three projects are driven by organizations that are deeply rooted in and have served their communities for decades," said Brian Oxford, CAHEC's Director, Community Capital. "Through New Markets Tax Credit investments, we are able to help these organizations and the community members they serve realize their visions for strong, stable, and thriving communities that provide opportunities for years to come." The NMTC program is designed to stimulate economic and community development and job creation in low-income communities by attracting private sector investment. CAHEC New Markets, an affiliate of CAHEC, uses NMTC allocations to finance high-impact community facility projects throughout the Southeast. These investments underscore the importance of leveraging private capital to address systemic challenges in education, housing, and healthcare, ultimately fostering self-sustaining communities.
