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$5.9 Mil Poverello Center Financing Provided by New Markets Tax Credits

A few of the main points about the financing that is playing a key role in the construction of the new Poverello Center:

* $5.9 million in New Markets Tax Credit financing for the Poverello Center’s new building closed today, allowing the project to move forward.

* Financing was provided by Montana CDC and US Bank.

* The new facility significantly improves the Poverello Center’s ability to meet the needs of the homeless.

* The New Markets Tax Credit program is designed to encourage private investment in designated low-income areas.

* Montana’s entire congressional delegation, Senator Baucus, Senator Tester, and Congressman Daines, support the New Markets program that made the financing possible.

* The project will have significant impact on Missoula’s economy, including creating or retaining approximately 70 jobs.

Please let me know if I can answer any questions or provide any more information. Thanks for your time.

Montana Community Development Corporation (Montana CDC)

Phone: 406-728-9234 #211

Cell: 406-529-3352

[email protected]

Montana CDC, U.S. Bank, and partners secure $5.9 million for the Poverello Center in Missoula, Montana

New Markets Tax Credits key in construction of new Missoula homeless shelter

Missoula residents will soon see the culmination of years of community-assisted planning as a new homeless shelter is constructed with the aid of New Markets Tax Credit financing. Montana CDC and U.S. Bank have secured $5.9 million in permanent financing to support the new Poverello Center on Broadway Street. Through the new facility, Missoula’s homeless will have improved access to shelter, nutrition, and medical services.

Since 1981, the Poverello Center has provided assistance to homeless individuals, veterans, and families from its headquarters at a 100-year-old building on Ryman Street. The existing shelter is over capacity 80% of the time, doesn’t meet ADA compliance even though one third of its clients are elderly or disabled, and regularly requires costly and time-consuming maintenance.

The Poverello Center launched a successful fundraising campaign in 2012 to help cover development costs of a new facility, but additional assistance was necessary to complete the financing and ensure the proposed relocation becomes a reality. New Markets Tax Credits, which encourages private investment in designated low-income areas, are helping realize those goals for improved services to an underserved population. It’s also helping Missoula address what has been a growing concern over the last five years as homelessness has increased in the city.

The new 21,000 square foot facility will provide expanded capacity to shelter the homeless during overnight stays as well as the continuation of on-site food and medical services. The building will also serve an increased number of veterans, and will provide medical respite beds for people discharging from hospital care or in need of hospice services.

Combined support from local and federal policymakers helped keep the project and its financing moving forward. The New Markets Tax Credit program, which helped make construction of the new facility possible, is supported by Montana’s congressional delegation. U.S. Senator Max Baucus helped make the program available to Montanans as Chairman of the Senate’s tax-writing committee. U.S. Senator Jon Tester has been a long-time backer of New Markets Tax Credits.

"The Poverello Center does tremendous work to help Montanans get back on their feet," Senator Jon Tester said. "This expansion will allow the Pov to reach out and support more Montanans–including veterans–who need a hand during tough times."

Missoula Mayor John Engen is a vocal proponent of the new facility and Montana CDC’s role in the financing package.

"Montana CDC continues to be such a valuable community partner, and this project is another example of how the organization brings real financial support to match real needs in cities in Montana and Idaho. This investment in the Poverello Center will serve Missoula today and will continue to make a difference for decades to come in the lives of individuals and the fabric of the community. I’m not sure you can do much better than that," said Mayor Engen.

In addition, U.S. Representative Steve Daines, who recently voiced support in Congress for New Markets Tax Credit use, recognizes the shelter’s mission. "The Poverello Center project reflects the compassion and concern of Montanans for their neighbors in need. I’m delighted that the Center will soon be able to provide crucial services to more veterans and families who need a helping hand."

Montana CDC and U.S. Bancorp Community Development Corporation, the community development subsidiary of U.S. Bank, together provided the New Markets Tax Credit financing for the construction of the building.

"Increasing the Poverello Center’s ability to provide more meaningful support and referral services to an underserved population exemplifies the type of high-impact investment that New Markets Tax Credits were designed to encourage," said Matt Philpott, director of New Markets, Historic, and Renewable Energy Tax Credit Investments for U.S. Bancorp Community Development Corporation.

Moving the shelter to a more efficient facility and closer to its health care partners and other related services was identified as a priority in the 2009 Downtown Master Plan developed jointly by the city of Missoula, Missoula Downtown Association, Missoula Downtown Business Improvement District, and the Missoula Redevelopment Agency.

The Poverello Center worked with city and community members to ensure that a new location would fulfill the organization’s mission to provide assistance to the homeless in a way that also supported longer-term community planning.

"While we are working on a more comprehensive plan to end homelessness, Missoula will always need an emergency facility to act as a safety net for people living in poverty. We’ve been providing this service for the last 40 years, and this building will ensure we can continue to for as long as necessary," said Eran Fowler Pehan, executive director of the Poverello Center.

Like all New Markets Tax Credit projects, there are significant community impacts associated with the facility. Some of the buildings’ features and community impacts include the following:

* Approximately 21,000 square feet of new construction that is anticipated to create 35 construction jobs.

* Increased access to vital shelter, nutrition, and healthcare services for approximately 7,000 low-income people annually.

* The retention of approximately 35 permanent jobs for the Poverello Center, Inc.

* Collaboration on a project that aligns with a larger, comprehensive community development plan for Missoula.

With financing in place, construction has begun, and the facility should be operational by the end of 2014.

Since 2009, Montana CDC has provided nearly $140 million in NMTC financing to projects throughout Montana and Idaho. For more information on the New Markets Tax Credit Program or other business financing options in Montana, contact:

David Glaser, Montana CDC President, 406-728-9234, ext. 211, or visit Montana CDC’s website at: http://www.mtcdc.org

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About Montana CDC

Headquartered in Missoula, Montana Community Development Corporation (Montana CDC) is a 501(c) 3 that provides business financing and consulting that can transform the lives of individuals and strengthen community prosperity. Since 1986, Montana CDC has lent nearly $300 million through its business loan program including New Markets Tax Credit enhanced loans. Additionally thousands of businesses have gone through Montana CDC’s consulting and training programs. With its financing and consulting tools, Montana CDC helps entrepreneurs start new businesses, helps business owners expand their businesses, and works to create vibrant economic communities with strong jobs.

About New Markets Tax Credits

New Markets Tax Credits (NMTC) were established by Congress in 2000 to encourage the investment of private capital in designated low-income communities in order to create jobs, generate economic activity and improve the quality of services in low-income communities and to low-income persons. NMTCs attract investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making qualified equity investments in specialized financial institutions called Community Development Entities (CDEs). In turn, CDEs provide below-market financing to transformative development projects in low-income communities across the country. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. For more information, visit cdfifund.gov.

About U.S. Bancorp Community Development Corporation

With more than $12.3 billion in managed assets as of September 30, 2013, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC’s commitments provide capital investment to areas that need it the most and have contributed to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at usbank.com/cdc.

Melanie Calahan

Director of Marketing

Montana CDC

229 E. Main St.

Missoula, MT 59802

406.728.9234 ext 216

406.542.6671 fax

http://www.mtcdc.org

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