Building America Receives $55 Million New Markets Tax Credits Allocation from U.S. Treasury
September 3, 2021
Sugar Hill Arts District - Detroit, MI
The U.S. Department of the Treasury Community Development Financial Institutions Fund awarded Building America CDE, Inc. (Building America) a $55 million allocation in New Markets Tax Credits (NMTC) on September 1, 2021. Building America, a subsidiary of the AFL-CIO Housing Investment Trust, uses New Markets Tax Credits to finance union-built projects that revitalize neighborhoods, bring critical services to low-income communities, and act as catalysts for additional community development.
This is Building America’s fifth NMTC award, bringing its total to $240 million. Building America has deployed $185 million of its previous NMTC to 22 projects, leveraging $1.1 billion in development, creating over 3,000 permanent jobs, 5,000 union construction jobs, and 630 housing units.
Recent projects allocated NMTC by Building America include the YWCA of Central Massachusetts, the Sugar Hill Arts District in Michigan, and the Powel Elementary School and Science Leadership Academy Middle School in Pennsylvania. Building America allocated $9.0 million in NMTC for the renovation of the YWCA of Central Massachusetts’ 74,300 square foot downtown Worcester facility which allows the YWCA to carry on its critical mission of providing shelter and support, as well as tools for self-sufficiency to a highly diverse and underserved population. Building America provided $14.5 million in NMTC to the Sugar Hill Arts District mixed use development in Midtown, Detroit that will offer workforce, market-rate, and affordable housing, including for previously homeless veterans. Sugar Hill, located across the street from the John Dingell Veterans Administration Medical Center, will also provide wraparound supportive services for veterans. Building America allocated $9.0 million in NMTCs for the new construction of the Powel Elementary School and Science Leadership Academy Middle School, in Philadelphia sponsored by Drexel University. The schools will increase access to quality education to more than 800 highly diverse students from kindergarten to 8th grade.
Building America’s mission is to bring jobs and services to severely distressed communities to help address endemic poverty. Building America will continue to invest in projects that support workforce development, community facilities (health/education), and affordable housing through mixed-use real estate with the goal of transforming neighborhoods and creating high-quality jobs in disadvantaged communities.
About Building America
Building America CDE, Inc. was established as a subsidiary of the AFL-CIO Housing Investment Trust (HIT) in 2010. The U.S. Treasury Department’s CDFI Fund certified Building America as a Community Development Entity, making it eligible to offer federal New Markets Tax Credits to investors. Building America has been awarded $240 million of these tax credits since 2011. More information is available on Building America’s website, www.buildingamericacde.com.
About the HIT
The HIT is a fixed-income investment company registered with the Securities and Exchange Commission. Its investors include union and public employee pension plans and labor organizations. The HIT invests primarily in government and agency insured and guaranteed multifamily mortgage-backed securities. The HIT is one of the earliest practitioners of socially responsible impact investing, with a track record of over 35 years that demonstrates the added value derived from union-friendly investments. The investment objective of the HIT is to provide competitive returns for its investors and to promote the collateral objectives of constructing affordable housing and generating employment for union members in the construction trades and related industries. More information is available on the HIT’s website, www.aflcio-hit.com. Investors should consider the HIT’s investment objectives, risks, charges, and expenses carefully before investing. This and other information is contained in HIT’s prospectus, available at the HIT’s website or by calling 202-331-8055. The prospectus should be read carefully before investing.