Osprey, Florida (September 19, 2024) Community Hospitality Healthcare Services (CHHS) is pleased to announce being awarded $40 million in New Markets Tax Credit (NMTC) allocation authority by the U.S. Department of the Treasury’s CDFI Fund from the 2023 allocation round.

With its tenth award, CHHS will continue its mission of financing high impact, mission-focused healthcare projects in low-income communities, particularly in non-metro locations. Rural communities have encountered many medical facility closures and shortages of healthcare professionals. Over the past six years, CHHS has invested more than 50% of its allocation in non-metro tracts and will focus on addressing this unfortunate trend with new allocation.

“CHHS is committed to improving access to healthcare services in underserved communities and feels privileged to be entrusted with an allocation” said CHHS founder and Executive Director Ben Cirka. Approximately, half of the Community Development Entities who applied received allocation.  “Disadvantaged and medically underserved communities continue to face resource crises, whether its human or capital constraints. CHHS underwrites and establishes relationships with borrowers who are committed to providing quality healthcare services in low-income communities for the long term.”

With today’s award announcement, the NMTC Program has awarded $81 billion through 20 rounds. Historically, NMTC awards have generated $8 of private investment for every $1 dollar invested by the federal government with over 75% placed in the nation’s most distressed communities. According to the CDFI Fund, through its fiscal year end 2023, NMTC Program award recipients deployed more than $66.6 billion in investments in low-income communities and businesses.

Since receiving its first federal award in 2011, CHHS has deployed more than $528 million in flexible financing to 52 projects across 24 states. More than 70% of its investments have been made into medically underserved areas, attracting quality medical providers who oftentimes offer services regardless of an individual’s ability to repay.

The New Markets Tax Credit program was created in 2000 in an effort to stimulate private investment and economic growth in low-income neighborhoods that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities.