Funds will support the creation of 63,000 square feet of educational space on a city block’s worth of currently vacant property
NEW BRUNSWICK, NJ – New Jersey Community Capital (NJCC), the state of New Jersey’s largest nonprofit community development financial institution (CDFI), is pleased to announce the closing of a $37.9 million New Markets Tax Credit (NMTC) transaction at Philip’s Academy Charter School in Paterson, New Jersey. NJCC is providing $13 million in NMTC funding and a leverage loan of $11.9 million to support the creation of 63,000 square feet of high-quality education space to serve 675 students on a currently vacant piece of land.
“One of NJCC’s core missions is to finance high-quality education opportunities for underserved and under-resourced communities. We are thrilled to allocate a significant amount of capital to Philip’s Academy Charter School that helps us pursue this goal and leads the way for the next generation,” said Bernel Hall, President and CEO of New Jersey Community Capital. “As our organization grows and finds more ways to increase equity, we’re proud to be able to fund critical projects in our community that generate new and better opportunities for New Jersey residents and their children.”
PNC Bank, N.A., contributed $3 million of its own NMTC allocation to the financing along with $4.6 million in NMTC equity. NJCC worked with FARR Education and Leviticus to provide a leverage loan. In addition, NJCC is working with Community Development Trust, a New York City-based CDFI that’s providing $10.68 million in a direct loan to the school project. Out of all the allocated funding, nearly $6 million stems from philanthropic capital.
“Through PNC’s work with New Jersey Community Capital, students at Philip’s Academy Charter School will have access to a new, high-quality educational space,” said David Gibson, senior vice president and manager of Specialty Tax Credit Investments for PNC Tax Credit Solutions. “We are committed to working with organizations that seek to address the most pressing needs, such as education access, in communities across our footprint.”
Since its inception 35 years ago, NJCC has created nearly 11,000 housing units across New Jersey, and finances the predevelopment, acquisition, construction, rehabilitation and mini-permanent needs of affordable housing units for ownership and rental opportunities. NJCC’s lending takes a holistic approach by financing projects that use the diverse pillars of a community, including small businesses, commercial office and retail spaces and early childhood education centers.
About New Jersey Community Capital
New Jersey Community Capital (NJCC) is a nonprofit community development financial institution (CDFI) that provides an innovative toolkit of financial products, programs and services to advance equity and opportunity in underserved communities. NJCC supports the preservation and development of affordable housing and sustainable community development ventures that increase jobs, improve education and strengthen neighborhoods to ensure that communities can thrive. To learn more, visit www.newjerseycommunitycapital.org and Twitter: @NJCommCapital.
NJCC is part of the NeighborWorks network, an affiliation of more than 240 nonprofit organizations located in every state, the District of Columbia and Puerto Rico. The NeighborWorks network was founded and is supported by NeighborWorks America, which creates opportunities for people to live in affordable homes, improve their lives and strengthen their communities.