The $20 million transaction utilized a portion of a $75 million New Markets Tax Credit award from the U.S. Department of Treasury to NYC Regional Community Development, an entity managed by NYCRC. To receive a New Markets Tax Credit allocation award, NYCRC was required to demonstrate a mission and track record of providing investment capital for low-income communities.
The capital is enabling Urban Health Plan, one of the largest Federally Qualified Heath Center systems in New York State, to construct a new administrative and programmatic hub known as the Urban Health Plan Medical Plaza.The new facility will house critical mental health services, WIC (Women, Infant, and Children) nutrition services, and a centralized training and continuing education center for Urban Health Plan’s approximately 1,000 employees.The facility will enhance service delivery and workforce development while supporting the organization’s mission to expand access to care and strengthen community health in a highly distressed area.
The new Medical Plaza will also house Odyssey House, a non-profit organization specializing in substance use disorder treatment and transitional housing, as well as MetroPlusHealth, a Medicaid managed care organization that serves low-income individuals.The addition of these tenants will enhance care coordination and make it easier for Bronx residents to receive comprehensive healthcare.
Urban Health Plan serves 89,000 unique patients and 430,000 patient visits annually. The organization has a network of twelve primary care sites, two mental health facilities, and twelve school-based health centersin the Bronx, Central Harlem, and Corona, Queens. Established in 1974, Urban Health Plan focuses on delivering comprehensive healthcare and social services to the low-income, uninsured and medically underserved population.The organization offers services such as primary care, pediatrics, women’s health, behavioral health, dental, vision, and specialty care regardless of a patient’s ability to pay.
“We are pleased to assist Urban Health Plan’s important work,” said George Olsen, NYCRC Co-Managing Principal. “Community-based health centers are strengthening the healthcare safety net by providing critical services for underserved communities throughout the city.”
“Our mission at NYC Regional Community Development is to expand access to capital for underserved neighborhoods,” said Paul Levinsohn, NYCRC Co-Managing Principal. “This investment will assist Urban Health Plan’s continued efforts to provide healthcare to patients regardless of their ability to pay.”
Since 2016, NYC Regional Community Development (NYCR-CDE) has received eight separate annual New Markets Tax Credit awards totaling $390 million. Examples of previous fundings include:
- Construction of the National Urban League’s new headquarters in Harlem
- Redevelopment of the Major Owens Community Center in Brooklyn
- Redevelopment of the Armory Track & Field Center in Washington Heights
- Expansion of St. John’s Episcopal Hospital Center in Far Rockaway
- Construction of seven Grand Street Settlement early childhood centers in Brooklyn and the Bronx
- Construction of four Community Healthcare Network clinics in Queens, Manhattan, and the Bronx
The New Markets Tax Credit Program was created by Congress in 2000 in an effort to stimulate private investment and economic growth in low-income neighborhoods and rural communities that lack access to capital. Historically, low-income communities often have difficulty attracting investment. The program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies. Private capital is incentivized by providing federal income tax credits to investors in exchange for making equity investments in low-income neighborhoods.
About New York City Regional Center
NYCRC was approved by the United States Citizenship and Immigration Services in 2008 to secure foreign investment for real estate and infrastructure projects under the EB-5 Immigrant Investor Program. Over the past 18 years, NYCRC has put $1.58 billion of EB-5 capital and $390 million of New Markets Tax Credit capital to work across a broad spectrum of infrastructure and real estate projects in New York City. Much of this capital has been invested in low-income areas in need of long-term economic growth. Examples include:
- $873 million to finance ground-up, redevelopment, and infrastructure projects in Brooklyn, including seven projects totaling $385 million in the Brooklyn Navy Yard
- $321 million to finance ground-up construction in the Bronx
- $232.5 million to finance the construction of a public high-speed wireless infrastructure network in New York City subway stations and along city streets
- $127.5 million to finance ground-up and redevelopment projects in Washington Heights (an Upper Manhattan Empowerment Zone)
To date, 56 projects across New York City have utilized NYCRC EB-5 and New Markets Tax Credit capital to assist in the construction of over 7.2 million square feet of new development and renovation as well as critical infrastructure initiatives.
CONTACT: info@nycrc.com
