Investing in Communities: How $35M is Transforming Lives
Empowering Local Communities with Targeted Investments
The Thriving Communities Fund, a $35 million impact investment initiative, has been put to use in ways that breathe new life into local businesses and create job opportunities. This fund is managed by Broadstreet Impact Services in collaboration with TD Community Development Corporation (TDCDC), focusing on revitalizing low-income communities through sustainable investments.
The Role of New Markets Tax Credits
At the heart of the fund's strategy lies the utilization of federal New Markets Tax Credits (NMTC). These credits are instrumental in channeling affordable and flexible capital into projects that otherwise might struggle to secure funding. By investing in commercial renovation endeavors, the fund aims to transform abandoned properties into thriving hubs of economic activity, thereby enhancing community aesthetics and increasing local tax bases.
Support for Job Creation
One of the fund's core objectives is to stimulate employment in areas where job loss is prevalent. By ensuring that investments not only foster economic development but also improve access to vital services—education, health care, and social services—the fund adopts a holistic approach towards community enhancement.
Featured Projects Making a Difference
The projects backed by the Thriving Communities Fund embody its mission of community impact:
- Hunger Hub: In Charlotte, this project involves the renovation of a 90,000-square-foot facility for Nourish Up, a nonprofit aimed at tackling food insecurity. The initiative is set to distribute 200,000 meals annually and create over 23 new permanent job opportunities.
- ConnCat Place: Located in New Haven, this new 65,000-square-foot facility will serve multiple purposes, including workforce development. It will also become home to ConnCAT, focusing on job training for careers in health sciences and culinary arts, adding 78 permanent jobs to the area.
- The Chocolate Factory: This project in Philadelphia is revamping a former candy factory into a dynamic commercial space for local enterprises. It aims to generate 130 jobs while providing crucial services to families in poverty-stricken neighborhoods.
- Delaware Valley Community Health Center: By renovating three locations, this health center aims to expand its services and create 133 full-time job opportunities. The enhancements will significantly increase its patient capacity.
- Hazel Johnson-Brown Building: A renovation project on Washington, D.C.'s Walter Reed Medical Campus is converting a nursing building into new commercial developments, which will include a hardware store and a coffee shop, creating additional local jobs.
Broadstreet's Vision for Impact
Brent Kuennen, SVP of Fund Management with Broadstreet, emphasizes that these projects align with their vision as an impact investor. Together with TDCDC, they work towards economic growth and lasting improvements that benefit families in these communities deeply.
The Impact of TD Community Development Corporation
As a certified Community Development Entity, TDCDC aims to bolster urban and rural neighborhoods, facilitating development in a broad geographic footprint stretching from Maine to Florida. Since its inception, TDCDC has achieved recognition for effectively deploying $450 million in NMTC allocations for community revitalization, showcasing a firm commitment to fostering economic empowerment.
About Broadstreet
Broadstreet specializes in impact financial services to propel social and economic change. With a portfolio managing $2.3 billion in assets across numerous funds, their mission revolves around promoting opportunities that align financial returns with positive community impact. Their extensive experience enables them to adapt to the unique needs of communities nationwide.
Frequently Asked Questions
What is the purpose of the Thriving Communities Fund?
The fund is designed to support business investments, community facilities, and job creation in low-income communities, leveraging NMTC for necessary funding.
How do NMTCs benefit local projects?
NMTCs provide affordable financing options that help close funding gaps and lower borrowing costs for projects that might not secure traditional financing.
What types of projects does the fund support?
The fund supports a variety of projects, including those focusing on food security, workforce development, healthcare, and community services aimed at enhancing local livelihoods.
How does Broadstreet contribute to community development?
Broadstreet manages the fund, facilitating impactful investments that seek to improve social, economic, and environmental outcomes in communities.
What long-term impact is expected from the fund's investments?
The goal is to create sustainable jobs, enhance service accessibility, and improve the overall quality of life in targeted low-income areas through strategic investments.
About The Author
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