New Markets Tax Credit Financing Paves the Way for a New Medical Center in Hilltop

  New Markets Tax Credit Financing Paves the Way for a New Medical Center in
  Hilltop

Business Wire

TACOMA, Wash. -- October 11, 2012

Community Health Care, a Federally Qualified Health Center serving residents
of Pierce County, Washington, has begun construction of a new $26 million
health center in the inner-city Hilltop neighborhood in Tacoma. The
development is being financed with more than $6.9 million of New Markets Tax
Credit (NMTC) equity raised in partnership with U.S. Bank, The National
Development Council (NDC), and the Low Income Investment Fund (LIIF).

The new Hilltop Regional Health Center will take the place of the small clinic
that Community Health Care has maintained on the Hilltop for over 35 years. It
will include medical and dental clinics, urgent care, radiology, pediatrics,
internal medicine and obstetrics. A total of 17,200 patients will be served at
the clinic annually, 600% percent more than at the existing clinic.

“In a time of economic uncertainty, this innovative source of funding was a
real boon to making sure our important health care facility would happen,”
said David Flentge, President and CEO of Community Health Care. “Without
NMTCs, raising the financing necessary for our new center at Martin Luther
King Jr. Way and Earnest S. Brazill would have been difficult, to say the
least.”

“The need for NMTC financing is greater than ever during a slow economy, as
funding gaps get larger and other sources of capital disappear,” said Matt
Philpott, Director of New Markets, Historic and Renewable Energy Tax Credit
Investments for U.S. Bancorp Community Development Corporation (USBCDC), the
tax credit investment subsidiary of U.S. Bank. “By utilizing the NMTC Program
and leveraging its available resources, Community Health Care has access to
critically needed capital and can focus more of its efforts on providing the
highest quality health care to those in need.”

Through the NMTC Program, Community Health Care was able to raise over $21
million of its $26 million capital goal. Financing includes an allocation of
tax credits and more than $6.9 million of NMTC equity from USBCDC in
partnership with NDC and LIIF; a $12 million grant from the Human Resources
Service Administration (HRSA); an $1.5 million grant from the state of
Washington; an $800,000 loan from the City of Tacoma through NDC’s Grow
America Fund; and $1.8 million of capital campaign funds raised to date by the
project sponsor.

“Our commitment to Tacoma is over 30 years old and going strong,” said Robert
W. Davenport, President of NDC. “The Hilltop neighborhood is one of the most
densely populated – and medically underserved – communities in the area. We’re
proud to partner with U.S. Bank, LIIF, and the City of Tacoma to increase
residents’ access to primary care providers and support the development of a
regional service clinic.”

Jim Walton, one of the Co-Chairs of Community Health Care’s capital campaign,
is quick to let people know that with $5 million left to go, there are still
opportunities to help underwrite this significant project. In addition to an
allocation of NMTCs, LIIF is providing bridge financing to Community Health
Center through a partnership with Philadelphia-based The Reinvestment Fund and
the Kresge Foundation as additional donations are secured.

“Community Health Care’s Hilltop Regional Health Center will bring much needed
medical services, capital investment and jobs to the Hilltop community. This
project is exactly the kind of investment the Low Income Investment Fund seeks
to further our mission of creating opportunity for low income families and
neighborhoods,” said Kimberly Latimer-Nelligan, Chief Operating Officer of
LIIF. “The organization is helping meet the needs of the uninsured, isolated
and medically vulnerable in Pierce County, and we’re committed to ensuring it
can continue to serve as an important community asset for years to come.”

The new clinic will be a three-story, 54,735 square foot building with an
adjacent three story parking facility. The architects for this project are
Johnson Architecture and Planning and the general contractor is Abbott
Construction. Construction started October 1, 2012 and is expected to be
completed by October 2013.

About Community Health Care
Community Health Care first started providing care in the Hilltop neighborhood
in 1969 in the basement of the nurse’s convent at St. Joseph’s Hospital. From
there it moved to a rented facility in 1980 and purchased the current facility
in 1997. In 2011 the Downtown Clinic served 2,821 patients through 10,036
patient visits. Community Health Care is a Federally Qualified Health Center
that serves Pierce County through five medical clinics and two dental clinics.
At Community Health Care no one is denied care due to inability to pay. People
without insurance are treated on a sliding-fee-scale based on income and
family size. Community Health Care, in 2011, served 31,719 patients through
121,076 patient visits. Of those served, eighteen percent were uninsured.

About Low Income Investment Fund
The Low Income Investment Fund (LIIF) invests capital to support healthy
families and communities. Since 1984, LIIF has served one million people by
investing $1 billion. Over its history, LIIF has provided financing and
technical assistance to create and preserve affordable housing, child care
centers, schools, transit-oriented developments and healthy food retail in
distressed neighborhoods nationwide. LIIF’s work has generated $20 billion in
family income and societal benefits. LIIF has offices in San Francisco, Los
Angeles, New York City and Washington, D.C. For more information about LIIF,
visit www.liifund.org.

About National Development Council
The National Development Council (NDC) is the oldest national non-profit
community and economic development organization in the U.S. It was founded in
1969 with one purpose: increasing the flow of capital for investment, jobs and
community development to under served urban and rural areas across the
country. Since that time, NDC has worked with thousands of communities in
every one of the 50 states and Puerto Rico, providing technical assistance,
professional training, investment in affordable housing, small business
financing and direct developer services. NDC has been using New Markets Tax
Credits (NMTC) to support economic and community development since the
program’s inception. NDC not only provides tax credit equity to our client
communities, but also assists communities in structuring their NMTC deals,
finding the necessary additional financing, and developing relationships with
other organizations that receive allocations of the tax credits. To date NDC
has invested over $587.6 million in 71 projects generating over $1 billion in
total investment. www.nationaldevelopmentcouncil.org.

About the New Markets Tax Credit Program
The New Markets Tax Credit (NMTC) Program was established by Congress in 2000
to encourage the investment of private capital in designated low-income
communities in order to create jobs, generate economic activity and improve
the quality of services in low-income communities and to low-income persons.
The NMTC Program attracts investment capital to low-income communities by
permitting individual and corporate investors to receive a tax credit against
their federal income tax return in exchange for making qualified equity
investments in specialized financial institutions called Community Development
Entities (CDEs). Capital raised by the CDEs is then used to provide
below-market financing to qualified businesses in low-income communities. The
credit totals 39 percent of the original investment amount and is claimed over
a period of seven years. For more information, visit www.cdfifund.gov.

About U.S. Bancorp Community Development Corporation
With more than $9.8 billion in assets, U.S. Bancorp Community Development
Corporation, a subsidiary of U.S. Bank, provides innovative financing
solutions for community development projects across the country using state
and federally sponsored tax credit programs. USBCDC's commitments provide
capital investment to areas that need it the most and have contributed to the
creation of new jobs, the rehabilitation of historic buildings, the
construction of needed affordable and market-rate homes, the development of
renewable energy facilities, and the generation of commercial economic
activity in underserved communities. Visit USBCDC on the web at
www.usbank.com/cdc.

About U.S. Bank
U.S. Bancorp (NYSE: USB), with $353 billion in assets as of June 30, 2012, is
the parent company of U.S. Bank, the fifth-largest commercial bank in the
United States. The company operates 3,080 banking offices in 25 states and
5,085 ATMs and provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to consumers,
businesses and institutions. U.S. Bancorp and its employees are dedicated to
improving the communities they serve, for which the company earned the 2011
Spirit of America Award, the highest honor bestowed on a company by United
Way. Visit U.S. Bancorp on the web at www.usbank.com.

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Contact:

Russ Sondker, Community Health Care
(253) 722-1550, rsondker@commhealth.org
or
Teri Charest, U.S. Bank
(612) 303- 0732, teri.charest@usbank.com
or
Angela Butler, National Development Council
(212) 682-1106, abutler@nationaldevelopmentcouncil.org
or
Samantha Hojo, Low Income Investment Fund
(415) 489-6113, shojo@liifund.org
 
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