New Markets Tax Credits bringing impactful redevelopment to Barelas neighborhood
Enterprise Bank & Trust is pleased to announce the closing of a finance agreement that will support Homewise’s $7.5 million multifaceted renovation of two properties in the historically underserved Barelas neighborhood of Albuquerque, New Mexico.
Homewise is a nonprofit Community Development Financial Institution (CDFI). The organization’s Barelas Regeneration Initiative specifically uses a catalytic, place-based commercial redevelopment strategy to increase economic activity and restore the cultural legacy in the surrounding highly distressed census tract.
To facilitate this deal, Enterprise allocated $7.5 million of its $60 million New Markets Tax Credits (NMTC) allotment awarded last September and will also serve as the investor in the tax credits. Enterprise Financial CDE, LLC, the subsidiary of Enterprise Financial Services Corp (NASDAQ: EFSC), provides NMTC allocations critical to the financing of development projects like this one for qualified businesses located in low-income communities.
The two projects will generate 114 high-quality, accessible jobs in part by creating affordable workspaces for 20 local entrepreneurs and artists who need flexible lease rates and supportive environments in which to grow their businesses.
“Enterprise continues to focus on building relationships in the communities we serve that result in creative and entrepreneurial initiatives like this one,” said Jessica Kuhn, Senior Vice President, Team Lead for Enterprise in Albuquerque. “Our ability to serve as the Community Development Entity and investor provided a streamlined and cost-effective financing structure to Homewise. We are excited to partner on this project and see the benefits play out in the Barelas neighborhood.”
Homewise provides comprehensive homeownership services for low- to moderate-income individuals and families, empowering them with financial education and coaching, real estate resources, affordable mortgage lending and down payment assistance, and refinance and home improvement lending. These services strengthen neighborhoods in Albuquerque and Santa Fe by increasing homeownership through real estate development, mortgage lending, property rehabilitation and revitalizing communities to benefit current residents.
Since Homewise was founded in 1986, more than 16,000 households have attended the organization’s financial education workshops, and the efforts have assisted in more than 5,000 home purchases, more than 2,200 energy-efficient home improvements, more than 700 mortgage refinancings and more than 750 high-quality, affordable home-builds.
Homewise’s community development strategies are tailored to each community. In Santa Fe, efforts focus on building both residential and commercial developments to increase proximity in areas where the housing market is tight. In Albuquerque, Homewise purchases and restores empty homes and commercial buildings to bring new businesses to disinvested communities. This includes the Barelas neighborhood, which is 72% Latino.
The renovations include redeveloping 20,000 square feet at 4th and Bell. More than 15,000 square feet will be converted into a series of commissary kitchens to be master leased and managed by the Street Food Institute, an established nonprofit organization that drives opportunities and creates jobs in the culinary industry. Various other tenants, including the fourteenfifteen gallery, a nonprofit collective supporting underrepresented local artists, will occupy six store fronts on the property.
The second property, at 803 2nd Street, will meet a need from the community for an early childhood education and day care center. Koala Children’s Academy is an experienced child care provider relocating to the area with expanded capacity to serve 60 children from infants through age five. More than 50% of the available slots are held for children from low-income families.
“Homewise is grateful for trusted community partners like Enterprise Bank & Trust, which has helped make these two important initiatives a reality,” said Mike Loftin, CEO of Homewise. “These projects align with our long-term vision, strategy, goals and financial well-being, while undoubtedly making a tangible impact on our mission to provide much-needed stimulus to this increasingly vibrant part of Albuquerque.”
About Enterprise Bank & Trust
Enterprise Bank & Trust is a growing financial services partner focused on guiding people to a lifetime of financial success. We empower privately held businesses to succeed, helping families to secure their financial futures, and invest to advance the quality of life for the communities we serve. Enterprise is built on trusted, personal relationships and offers a range of business and personal banking services, wealth management services and a variety of specialized banking services. Enterprise Financial Services Corp (NASDAQ: EFSC), with approximately $13.1 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust operates 41 branch offices in Arizona, California, Kansas, Missouri, Nevada and New Mexico, and SBA loan and deposit production offices throughout the country. Additional information is available at www.enterprisebank.com. Member FDIC.
About Homewise
Homewise is a New Mexico-based nonprofit Community Development Financial Institution (CDFI) founded in 1986. Its mission is to help create successful homeowners and strengthen neighborhoods so that individuals and families can improve their long-term financial wellbeing and quality of life. Homewise services include financial literacy education and coaching, real estate services, affordable mortgage lending and down payment assistance, loan servicing, refinance, and home improvement lending. Homewise strengthens neighborhoods by increasing homeownership through real estate development, property rehabilitation, and revitalizing communities to benefit existing residents. Since Homewise was founded in 1986, over 18,400 New Mexicans have attended its financial capability and homebuyer education workshops. During that time, Homewise helped over 6,500 New Mexicans purchase homes, over 2,300 make energy efficient home improvements, and more than 1,500 refinance their mortgages. Homewise has also built over 900 high quality, energy efficient and affordable homes. To learn more, visit www.homewise.org.
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