With funding from the New Markets Tax Credit, Enterprise Community Partners (Enterprise), Atlanta Neighborhood Development Partnership (ANDP), and Westside Future Fund have committed to build or rehabilitate 45 affordable housing units for low-to-middle income families in Atlanta.
The project will focus on the Westside and Southwest neighborhoods of the city. 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 corporate partners described the goal of the new development as “helping to expand opportunities for homeownership and wealth creation in historically black communities near downtown that have experienced decades of divestment. and gentrification and, more recently, disproportionate damage from COVID -19.
“The homes will be affordable for families earning up to 120% of median income, with 20% of units set aside for families earning 80% or less of median income,” said Meaghan Vlkovic, vice president of Enterprise and Southeast. market leader, said.
“It is very important because in this model, thanks to the new tax credit in the market and the public-private and philanthropic partnership, it will allow the sale prices to be affordable for the families who earn these incomes.
The New Markets Tax Credit program was created by Congress in 2000. According to the U.S. Treasury, the program “enables individuals and businesses to receive a non-refundable tax credit on ‘federal income tax for making equity investments in financial intermediaries known as Community’. Development entities (CDE).
The money is then invested in low-income urban and rural communities. Racial equity is what Vlkovic described as the focus of his work at Enterprise, and it’s what captured his interest in this project.
“The majority of homes on the Westside are not owner occupied – they are investor owned and are coming in now to secure homes for renovation or vacant land for new production affordable homes, this will help prevent displacement,” said 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 it’s really a wealth-building initiative that’s particularly focused on building wealth and among families of color,” O’Callaghan said. “And… there’s just a need in Atlanta for more affordable homes and apartments.”
On average, families who used the ANDP homeownership program accumulated $134,000 in wealth from the value of their home. The construction of this project has been underway for about a year and is expected to be completed in 2023.