Skip to content

Pioneering LISC New Markets Tax Credit investment will help Project HOME end chronic street homelessness in Philadelphia

March 8, 2013

A $1.9 million equity investment from LISC and PNC will allow Project HOME to expand services to help more people escape homelessness

Working in partnership with the City of Philadelphia, the Commonwealth of Pennsylvania, and the Federal Government, Project HOME hopes to make Philadelphia the first major city in the United States to end chronic street homelessness. Through the generosity of lead private donors, John and Leigh Middleton, they have created the “Middleton Partnership,” a collaborative public/private approach to build a brighter future for people who have experienced homelessness.

Utilizing a $7.1 million grant provided by John and Leigh Middleton and $1.9 million in equity generated from New Markets Tax Credits (NMTCs) provided by LISC and PNC, Project HOME received a total of $9.0 million in financing to help further its campaign to end homelessness.

As part of the Middleton Partnership. Project HOME is serving as the lead agency of a provider network that looks to develop a comprehensive program of permanent housing, healthcare, education, and employment designed to break the cycle of homelessness and poverty – with a bold goal to end chronic street homelessness in the city by 2017.

The financing from LISC and PNC will provide the working capital needed for Project HOME to significantly expand its supportive services, and to renovate and expand its health clinic and office space in support of this growth.

From 2012-2017, the Middleton Partnership will develop 1,200 housing opportunities, including 1,000 drug- and alcohol-free housing opportunities, and 200 education/employment-based housing opportunities for homeless youth. The following services will be expanded: street outreach, case management, addiction recovery, employment support, health services, educational assistance, and adult learning and workforce development.

With this growth, Project HOME hopes to create 43 jobs (full-time equivalent) and serve 2,200 additional homeless people (including 1,000 of the longest-term and most vulnerable people living on Philadelphia’s streets).

The funds will also allow Project HOME to better manage its existing stock of housing for the formerly homeless, which includes 65 units of entry-level safe haven housing for chronically homeless adults with special needs, 62 transitional housing units, and 352 units of supportive housing.

Financing for the Middleton Partnership expansion was made possible by the New Markets Tax Credit (NMTC), a federal policy tool that attracts private sector capital to investments in low to moderate-income neighborhoods. Through the program, investors – in this case, PNC Bank – earn a tax credit against corporate income over the next 7 years in return for investing capital now in projects that leverage philanthropic and public investments in these communities. LISC’s affiliate New Markets Support Company invests NMTC funds across the country, and since 2002, these projects have created over 16,000 temporary and permanent jobs.

Read more about Project HOME.

Read more about LISC’s New Markets Support Company.

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: