Through New Markets Tax Credit financing, Enterprise Community Partners (Enterprise), Atlanta Neighborhood Development Partnership (ANDP) and Westside Future Fund have committed to building or rehabilitating 45 affordable homes for low to moderate income families in Atlanta.
The project will have a focus in the city’s Westside and Southwest neighborhoods. ANDP will create 25 homes in the Campbellton Road area, while Westside Future Fund will rehabilitate 20 homes in Vine City, English Avenue, Ashview Heights and the Atlanta University Center.
In a statement the partnering companies described the goal of the new development as “helping to expand homeownership and wealth-building opportunities in historically Black communities close to the city center that have experienced decades of disinvestment and gentrification and, more recently, disproportionate harm from COVID-19.”
“The homes are going to be affordable to families earning up to 120% of the median income,with 20% of the units set aside to families earning at or below 80% of the median income,”Meaghan Vlkovic, Enterprise vice president and Southeast market leader, said.
“This is very important because in this model, because of the new market tax credit investment, and the public private and philanthropic partnership, it is going to allow for the sale prices to be affordable to families earning those incomes.”
The New Markets Tax Credit program was established by Congress in 2000. According to the United States Treasury, the program “permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as Community Development Entities (CDEs).”
The money is then invested in low-income urban and rural communities. Racial equity is what Vlkovic described as the center of her work at Enterprise, and is what caught her interest on this project.
“The majority of the homes on the Westside are not owner occupied- they are investor owned and getting in now to secure homes for renovation or vacant land for new production of affordable homes, it will help prevent displacement,” Vlkovic said.
John O’Callaghan, president and CEO of ANDP, this development is an opportunity for people to create wealth within their families as well.
“So, this is really a wealth creation initiative that is particularly focused on developing wealth and among families of color,” O’Callaghan said. “And … there’s just a need across Atlanta for more homes and apartments that are affordable.”
On average, families who have used ANDP’s homeownership program have accumulated $134,000 in wealth from the value of their homes. Construction on this project has been ongoing for about a year and is expected to be complete in 2023.