by Mark RichardsonIllinois News Connection
CHICAGO - A federal program is awarding billions of dollars in tax credits to spur investment and economic growth in low-income urban and rural communities. The New Market Tax Credits program has allocated funds to 104 Community Development Entities for projects and job development in Illinois and elsewhere. One such entity, Self-Help Ventures Fund, is investing $50 million in low-income urban, rural and tribal communities. Sarah Brennan, structured finance sector leader for the fund, said they are focusing their investments on vital entities such as health clinics, charter schools and food banks. "The program works by the government allocating authority to CDEs like ours to then give that tax credit to projects," Brennan explained. "What that allows projects to do is attract an investor."
Before the clinic expanded, patients were experiencing long waits just to see a doctor.
Self-Help has contributed $7 million to fund an expansion of Esperanza Health Centers in Chicago, more than doubling the public health clinic's capacity. Esperanza ranks among the top 3% of clinics nationwide for patient care outcomes. More than 90% of its patients are low-income people of color. Esperanza recently opened a 40,000 square-foot expansion that will serve more than 23,000 additional patients. Ryan Gadia, CFO of Esperanza, said Self-Help guided the clinic to connect with new investors for the project. "Once we were putting together the financing on this building, we worked with a local community development entity, Chicago Development Fund," Gadia pointed out. "It is through them that we got the introduction to Self-Help." Gadia added before the clinic expanded, patients were experiencing long waits just to see a doctor. Brennan stressed their goal is more than just building a new building. "Another remarkable byproduct of these deals is the new jobs that are created, all the different medical jobs, construction jobs, and then jobs like the food service areas," Brennan outlined. "It's a real economic-engine tool."
