Women and NMTCs
Exploring the Ways the NMTC Program has Benefited Women in the US
Since the creation of the New Markets Tax Credit program (NMTC) in 2000, community development entities (CDEs) have received a tax credit for equity investments into qualified low-income businesses (QALICBs) in low-income communities. Based on research done between 2002-2007, out of 246 QALICBs that received investments, 10% were women-owned/controlled. Since then, NMTC investment has remained an important part of funding for women-owned and minority owned-businesses; however, updated statistics are not immediately available at this time which may indicate that research is still ongoing or has not been published. In the future, we are likely to see new statistics that show the quantitative progress of how NMTC affects women; nonetheless, this blog post showcases several qualitative examples of the benefit of NMTC investment into women-owned or related businesses.
Due to social and economic factors such as the wage gap, women collectively face less financial security compared to men, which creates a barrier of entry into a financially successful business. NMTC investment into women-owned or related businesses helps to provide financial security which may be less accessible in low-income communities.
The following organizations are dedicated to educating and advancing women in society, and also to protecting women and children from issues such as racial or gender inequality, domestic violence, poverty and homelessness, and addiction. Each of these organizations has been funded in part through the NMTC program by various CDEs.
girls inc.
girls inc. is a non-profit organization that currently has over 1,500 locations across the United States and Canada. The organization is dedicated to providing support for girls between ages 5 and 18 regarding healthy living, academic enrichment, and life skills instruction. In addition to these pillars, the organization also educates girls and young women to “navigate gender, economic, and social barriers” to better prepare themselves to live independently as strong women.
In Oakland, CA, NMTCs were used to help renovate an existing building into a new girls inc. of Alameda county center headquarters in 2012. The new center, named Simpson Center for Girls, is the first resource center in the county that will substantially increase the number of girls served in the region by 25%. In the 2020-2021 year, the girls inc. impact report stated that 20% of girls in Oakland will not graduate high school, 60% of girls in Oakland experienced stress and anxiety relating to COVID-19, and the average student in the city is four months behind in school. girls inc. of Alameda county seeks to remedy this situation by providing educational opportunities and mentorship to the girls they serve. Additionally, this center educates the girls and young women who visit the center, 96% of whom identify as people of color, on the “intersection of historic gender, racial, and economic inequalities.” girls inc. is successful thanks to its staff, volunteers, and funding. This project had an estimated total cost of $17,807,722 and NMTC funding covered $17,800,000, including $5 million by US Bank. The construction of the new headquarters created or retained 175 permanent jobs and 89 construction jobs. To learn more about this location or the girls inc. organization please visit https://girlsinc-alameda.org/ or https://girlsinc.org/.
Genesis Shelter
Genesis Shelter in Dallas, TX is dedicated to providing resources, including emergency shelters, long-term housing, legal services, and thrift stores, for women who experience domestic violence and to educating on the “cause, prevalence and impact” of domestic violence. Genesis Women’s Shelter aims to shift societal perception of domestic violence from something that affects a certain kind of people to violence that can affect anyone. Genesis aims to end domestic violence and focuses on providing hope to all women who seek help and/or information from the shelter. To learn more about Genesis Women’s Shelter, please visit https://www.genesisshelter.org/.
Genesis Women’s Shelter plans to open a new non-residential location in Dallas to double the number of women and children served from 3,700 to 7,500 and expand Genesis’ services across Dallas. The new facility is expected to open in spring 2022 and will include a counseling center for children, legal services, and an education center. The facility created 500 construction jobs and 40 permanent jobs, and $19 million of the total cost of $38.6 million is funded through the NMTC program. The CDEs involved are Hampton Roads Ventures, Capital One, and Texas Mezzanine Fund.
Renewal House
Renewal House is an addiction treatment facility that focuses on the necessary bond between women and children during the process of treating addiction. For this reason, Renewal House treats substance abuse disorders and provides housing for women and children together, and is the only program in Middle Tennessee for women, their children, and pregnant women.
In 2021, Renewal House received $9 million in NMTC from Primary Care Development Corporation (PCDC) and US Bank (USBCDE) to create a new treatment and mental health facility. The new facility, constructed in Nashville, is expected to create 25 permanent jobs and 155 construction jobs. The total estimated project cost is $9,156,250. The state of Tennessee is significantly affected by addiction and has a high rate of neonatal abstinence syndrome. With the completion of this facility, Renewal House will be able to double its capacity for treatment and add 34 apartment units for inpatient families.
Wheeler Mission
The Wheeler Mission Center for Women and Children is an organization dedicated to providing goods and services to women and children experiencing homelessness and poverty in Indianapolis. The center is under the umbrella of the Wheeler Mission, an organization dedicated to providing similar services to people experiencing homelessness across the state in nine locations. To learn more about the Wheeler Mission and the Center for Women and Children, please visit http://www.wheelermission.org.
The expansion was funded in part by NMTCs from Indianapolis Redevelopment CDE. The total cost of development was $15 million, $9 million of which was financed by NMTCs. This facility expanded on the Wheeler Mission’s endeavors to expand goods and services to the Indiana homeless population. The new center focuses on providing health care, emergency services, and residential services for women and children in the Indianapolis area. This new expansion will create 15 permanent jobs and 73 construction jobs, and will create 164 new beds for families and long-term shelter and 40 emergency shelter beds. The expansion opened in August 2021.
Each of the above organizations are committed to providing women with the necessary opportunities to gain an education, battle addiction, escape domestic violence, and beat homelessness. These centers recognize that none of these things are simple, but hope to create secure spaces for women and their children to both accomplish their goals and to live safe, quality lives.