Citi Community Capital and Habitat for Humanity International have closed on $8 million in New Markets Tax Credit (NMTC) financing for three Habitat affiliates to create more than 30 homes over the next seven years.
The Habitat for Humanity affiliate in Boston has started construction on homes being financed with New Markets Tax Credits.
The Habitat affiliates in Boston, Paterson, N.J., and Coastal Fairfield County, Conn., will be able to provide more homeownership opportunities for low-income families while also helping to revitalize those neighborhoods.
“Citi is a longtime partner with Habitat in the fight to provide decent, affordable housing for underserved communities, and we are proud to play our part,” says Andrew Ditton, co-head of Citi Community Capital.
To make the transaction more beneficial for Habitat, Gina Nisbeth, director at Citi Community Capital, says Citi and Habitat culled together the three affiliates to structure a larger deal.
“The smaller the NMTC transaction is, the less efficient or impactful it is to the ultimate borrower,” says Nisbeth. The three affiliates were selected for their readiness as well as their ability to provide ongoing compliance, which can be laborious for NMTC deals over the course of the seven years, Nisbeth says. Two of the affiliates also had previously closed NMTC financings, and all three are within Citi’s footprint.
“Through NMTC financing, Citi is helping Habitat affiliates accelerate construction activity in target areas, increasing opportunities for revitalization, and benefitting entire communities. We are grateful for Citi’s support,” says Sue Henderson, vice president, United States and Canada, Habitat for Humanity International.