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New CHEFA Subsidiary to Spur Investment in Low-Income Communities in CT
Hartford, CT –The Connecticut Health & Educational Facilities Authority (“CHEFA”) recently announced the creation of a new subsidiary called the “CHEFA Community Development Corporation, or “CHEFA CDC”. CHEFA CDC will offer a financing program utilizing available federal tax credits to fund projects for non-profit organizations serving low income Connecticut communities.
“This will be the first such federally certified entity headquartered in Connecticut that focuses exclusively on the non-profit sector in Connecticut”, says Jeanette Weldon, CHEFA Executive Director. “CHEFA is dedicated to providing financing for non-profits. CHEFA CDC gives us a financing tool specifically focused on non-profits serving low income areas. These organizations are an important part of the social safety net and often struggle to find funds for physical plant investment. CHEFA CDC can help close those funding gaps, while also providing an attractive opportunity to investors.”
CHEFA CDC will be authorized by the US Treasury to allocate available New Markets Tax Credits to non-profit organizations in Connecticut for their capital projects. An allocation of New Markets Tax Credits will assist non-profit organizations in attracting equity investment in their capital projects, effectively reducing the financing costs for the projects, while also enhancing the services they provide in their low-income communities.
CHEFA CDC will be applying for its first New Markets Tax Credit allocation this summer, with the expectation that credits will be available in early 2020. Suitable capital projects will range between $4M - $50M. Examples of projects include healthcare centers, childcare facilities, charter schools, or community centers.
“CHEFA CDC is a non-profit subsidiary of CHEFA that supports CHEFA’s mission to improve the quality of life for every Connecticut citizen in the areas of healthcare, education and culture” says Peter Lisi, CHEFA Chair. “CHEFA is very proud to launch CHEFA CDC, which has the potential for positive and significant impact on our state.”
CHEFA will host a free workshop to introduce CHEFA CDC and the New Markets Tax Credit Program to non-profits, investors, developers and other interested parties on Wednesday, April 3, 2019 from 9:00 a.m. – 11:30 a.m. time. To register for the workshop or for more information about CHEFA CDC, contact Michael Morris, Managing Director at CHEFA, at firstname.lastname@example.org or visit the CHEFA website www.chefa.com.