February 2024 Loan Round-up March 1, 2024

In February, IFF closed 12 loans totaling approximately $28.6 million for community-driven projects in the Midwest, while also closing funding to a New Markets Tax Credit (NMTC) project that provided an Ohio nonprofit with a $7 million federal NMTC allocation and a $1 million State of Ohio NMTC allocation. We’ve included information below about several of the loans and what the organizations that received them are doing with the capital. To learn more about IFF’s lending, visit our Capital Solutions page.

Brown Property Development 

IFF closed a $330,000 loan that provided Brown Property Development (BPD) with financing for the acquisition of property and subsequent construction of two new single-family homes in Indianapolis, IN, that will be sold at affordable prices by leveraging subsidies provided through American Rescue Plan Act (ARPA) funding allocated by the City of Indianapolis. BPD is a newly formed, Black-owned business led by Kevin Brown II, who completed a “jump start” program offered by Martindale Brightwood Community Development Corporation (CDC) designed to equip first-time developers with the skills, support, and mentorship needed to develop community assets in the Martindale Brightwood neighborhood. BPD was awarded a $300,000 reimbursable grant by the City of Indianapolis for the project through a highly competitive process, and IFF’s loan will bridge the grant funding until the new homes are sold. 

Domera Development 

IFF closed a $1.38 million loan that provided Domera Development with financing for an affordable housing development, Avalon at Morris, in Morris, IL. The project will build 18 single family, duplex, and quadplex style residential buildings, with two-and three-bedroom apartments affordable to residents earning 30-60 percent of the Area Median Income (AMI). Amenities will include central heat and air; bulk storage space; Energy Star-certified lights, refrigerators, and dishwashers; and in-unit laundry. The property is located in a well-established residential area and will provide residents with easy access to multiple public services and communities amenities. Founded in 2021, Domera Development develops affordable housing properties, among other services, in a six-state footprint. Sources of funding and financing for the $10.7 million project include 9% Low-Income Housing Tax Credits, a conventional construction-to-permanent mortgage, Federal Home Loan Bank Affordable Housing Program grant funds, and a deferred developer fee. IFF previously provided a predevelopment loan for the project in January 2023. 

Lillian Marcie Center 

IFF closed a $393,356 loan that provided predevelopment financing to the nonprofit holding company developing the Lillian Marcie Center (LMC), a performing arts facility in Chicago’s Bronzeville neighborhood. IFF previously closed a $2.5 million predevelopment loan for the project in June 2022, and the additional capital is needed to offset delayed funding from the State of Illinois intended for predevelopment. The project will transform a 108-year-old property, originally constructed as a Marshall Field’s warehouse, into a 21,500-square-foot performing arts center envisioned as the capital of Black American performance art. 

The $35 million redevelopment will create two stages for theater groups to perform, one of which will accommodate approximately 350 people and a second, more intimate studio theater that will seat approximately 70-80 patrons. The African American Museum of Performing Arts will be an anchor tenant in the facility, providing artistic residencies as a community partner and sponsoring theatrical and performing arts productions. Two additional theater companies, Congo Square Theater and NAJWA DANCE CORP, are also planning to stage performances in the facility. The Lillian Marcie Center will recruit local residents to staff the facility and plans to establish an incubator for the performing arts at the facility for Chicago Public Schools students.

The project is expected to create more than 10 full-time jobs, while also establishing a new cultural resource on Chicago’s South Side. To date, the project has secured funding and financing from a diverse group of private and public sources, including the State of Illinois and the City of Chicago. 

YMCA of Greater Toledo 

IFF closed a New Markets Tax Credit (NMTC) deal that provided the YMCA of Greater Toledo with a $7 million federal NMTC allocation and a $1 million State of Ohio NMTCs that will be used to construct a new 40,000-square-foot community facility and redevelop the City of Toledo’s Inez Nash Park in the Warren Sherman neighborhood of Toledo, OH. The new Wayman D. Palmer YMCA will go beyond traditional membership programming, leveraging its deep connections in the community to activate strategic partnerships in delivering mental health services, workforce development, youth programming, early childhood education, a food pantry, and other services most needed in Toledo’s Central City. The new facility will double the space of the current building and is expected to serve more than 10,000 members annually. The $29.5 million project – which will bring 125 construction jobs and 50 full-time, permanent jobs to the community – will leverage $15 million in total federal NMTC allocations, with Building America CDE, Inc. also allocating NMTCs and Capital One, N.A. serving as the NMTC investor. Additional sources of funding include American Rescue Plan Act (ARPA) funds and Community Development Block Grant (CDBG) funds provided by the City of Toledo.

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