Building America CDE, Inc. Allocates New Market Tax Credits to Straight & Narrow project in Paterson, NJ

September 9, 2024

AFL-CIO Housing Investment Trust’s subsidiary Building America CDE, Inc. allocated $11 million in New Market Tax Credits (NMTC) to support the construction of a new $32.9 million facility for a substance abuse rehabilitation center in Paterson, NJ. Straight & Narrow (S&N), a subsidiary of Catholic Charities of Paterson, is one of New Jersey’s oldest community-based organizations. It offers a wide range of treatment services, including long-term residential and outpatient drug treatment, halfway house support, counseling, and nutritional assistance.

The construction of S&N’s new facility is expected to create 143 union construction jobs and create 91 permanent jobs. Thanks to Building America’s involvement in this impactful project, the 54,000 square feet facility will be built with 100% union labor. The facility is projected to provide rehabilitation services to over 1,600 low-income individuals each year. Additionally, it is expected to provide one million meals annually to both residents of the facility and other participants in S&N programs throughout the city of Paterson. Building America’s investment in S&N’s new facility demonstrates how flexible financing and union labor can work together to help fill communities’ most pressing needs. 

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-grade mutual fund with $6.7 billion in net assets. For 40 years, the HIT has been a leader in putting union and public pension capital to work to produce competitive returns and achieve mission-related collateral objectives. Investors should consider HIT’s investment objectives, risks, and expenses carefully before investing. Investors may view the HIT’s current prospectus, which contains more complete information, on its website at www.aflcio-hit.com and may obtain a copy by calling HIT Investor Relations at 202-331-8055. Investors should read the current prospectus carefully before investing.

 Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT and HIT Subsidiary Building America CDE, Inc. project data. The data is current as of June 30, 2024. Economic impact data is in 2023 dollars and all other figures are nominal.