Summary:
In 2016, the City of Orlando entered into a Community Development Block Grant (CDBG) agreement with the Health Care Center for the Homeless, Inc. (HCCH) for the acquisition of property located at 4426 Old Winter Garden Road so that HCCH could build a health care facility. On July 24, 2017, City Council approved, as part of the FY 2017 Annual Action Plan, a request from HCCH for CDBG funding in the amount of Three Hundred Twenty-Five Thousand Dollars ($325,000.00) towards the construction of improvements (a parking lot, security, and fencing) to support this approx. 12,000 square foot comprehensive health care facility to be located on the property HCCH acquired. HCCH will provide primary and preventative medical, dental, behavioral health, and pharmacy services to the homeless and other low- and moderate-income persons at this healthcare facility. The 2018 CDBG Agreement shall be in effect for the period commencing October 1, 2018 through September 30, 2019.
In addition to the City’s assistance with CDBG, along with other funding sources including the applicant, the HCCH has also secured New Markets Tax Credit (NMTC) financing from a community development entity as this is a qualifying business. The NMTC financing fills approximately 20% of the financing gap, however the City’s CDBG funding competes with the technical requirements of that funding. Our proposed arrangement requires HCCH have a continuing obligation to operate the facility as a community health care center but without the typical security and mortgage documents. In the event the project fails to meet its objectives the City could be responsible to repay the CDBG funds invested back to HUD. But by receiving the additional NMTC financing, the HCCH is actually in a better position to fulfill its obligations under the CDBG agreement. The financing provided by the tax credits substantially reduce overall borrowing and therefore alleviate HCCH’s financial stress, allowing the organization to complete this facility, expand its services, and provide increased stability to the neighborhood. |