SRH Law is delighted to announce that client Champlain Housing Trust (CHT) has closed on an $8.8 million New Markets Tax Credit financing transaction for the rehabilitation of the former St. Joseph’s School on Allen Street in Burlington. SRH Law attorneys Drew Kervick and Victoria Westgate represented CHT in the financing, which will pay for numerous upgrades and renovations to the Old North End Community Center and help anchor important community programs and services in Burlington’s Old North End neighborhood. The rehabilitation work is already underway and includes accessibility upgrades, installation of a new elevator and a commercial kitchen, increased insulation, window replacements, installation of a new highly efficient heating and cooling system, sprinkler system replacement, electrical system updates, and new restrooms, among other things. The community center is home to the City of Burlington Parks, Recreation & Waterfront Department, the Robins’ Nest Children’s Center, the Association of Africans Living in Vermont, and the Family Room, as well as the Very Merry Theatre.
The complex financing package for the building’s renovations was built around a tax credit allocation from Vermont Rural Ventures that funded nearly one third of the overall project costs. The project received a tax credit equity investment from TD Bank’s Community Capital Group, as well as loans from TD Bank, the Vermont Community Loan Fund, Commons Energy and the Vermont Community Foundation. CHT also received grants from the Vermont Community Development Program, the City of Burlington, and NeighborWorks, energy efficiency incentives from Vermont Gas and Burlington Electric, and critical charitable contributions and support from the community. These investments will enable the Old North End Community Center to continue to serve the needs of Burlington’s Old North End Community for many years to come.
The New Markets Tax Credit (NMTC) program is a federal program that incentivizes investment in low-income communities by providing private investors with federal tax credits for qualifying investments in businesses or economic development projects in economically distressed areas. SRH Law attorneys have years of experience with NMTC financings, having represented both project developers and lenders in such transactions. We recently blogged about the New Markets Tax Credit financing for another SRH Law client, Chroma Technologies. You can read more about that project here. To learn more about financing projects using federal tax credit programs and incentives such as New Markets Tax Credits or the Opportunity Zone tax incentive, contact Drew Kervick.
