PRESS RELEASE
10/12/07
CONTACT: Charity Sack, (703) 647-2337
ASPIRA Of Florida Receives $7.4 Million In Facilities Financing, Increases Access For Underserved Students
New Markets Tax Credits Deal Makes a Better Education Possible for Low-income Students
MIAMI, (October 12, 2007) — ASPIRA of Florida Incorporated today announced that it received $7.4 million through the New Markets Tax Credits (NMTC) Program to renovate and construct facilities at a charter middle school in a low-income area in North Miami. The new facility will allow the school to double its enrollment from 300 to 600 students, of which nearly 85 percent qualify for free and reduced-price lunches. The waiting list for enrollment at ASPIRA North currently includes 107 students.
Financing for the charter middle school was made possible through a unique partnership among financial and community development institutions and the federal NMTC Program. All of the tax credits for the financing were provided by Florida Community Loan Fund (FCLF). These tax credits allowed ASPIRA to benefit up to $1.5 million in equity at the end of seven years. NCB and U.S. Bancorp Community Development Corporation (USBCDC) provided the debt and equity for this transaction, while NCB Capital Impact provided its expertise in charter school underwriting, construction management and loan servicing.
“When the future of a community hinges on its youth, what could be more important than working together to provide them with the best possible education?” said Terry Simonette, president and CEO of NCB Capital Impact. “Thanks to the NMTC Program and the steadfast commitment of all the organizations involved, this deal directly improves access to quality education and greater opportunities for the families in this community.”
Traditionally, standardized testing in the local public schools has trailed statewide averages. Charter schools like ASPIRA North have helped to reverse that trend in Florida and across the country. For school year 2005-2006, the state awarded ASPIRA North a grade of “A” based on its students’ mastery of established Florida state standards as measured by the Florida Comprehensive Assessment Test (FCAT). In addition, ASPIRA North met the conditions for Adequate Yearly Progress under the No Child Left Behind legislation, having satisfied 100 percent of the criteria. While ASPIRA charter schools serve the most economically disadvantaged students in the state, data shows its students are making great progress.
Larry Baerveldt, vice president of USBCDC, noted that this is the ninth project in which the bank has worked with NCB Capital Impact using tax credits. “We are one of the largest investors of NMTCs because we believe they serve as a catalyst for much needed educational improvements and economic development in communities across America,” said Baerveldt.
“Non-profit organizations are traditionally underserved by the financial market. Mission-driven lending organizations like the Loan Fund were created to address those needs in Florida,” stated Nelson Black, senior loan officer of FCLF. “We’re excited to be able to assist our financial partners in delivering this unique loan capital to ASPIRA, an organization that is clearly dedicated to giving its students the opportunity to achieve and excel.”
ASPIRA North opened in 1999. It works to provide appropriate educational approaches to improve student performance, to provide a safe educational environment, to build values and character by promoting parental involvement and to develop students’ leadership skills through community involvement.
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NCB Capital Impact, the non-profit affiliate of NCB, provides financial services and technical assistance to create more affordable cooperative homeownership, assisted living, housing and services for the frail and elderly, and facilities for health care centers and charter schools. Headquartered in Washington, D.C., NCB Capital Impact has offices in California and New York. To learn more about NCB Capital Impact, its programs and initiatives in advancing education, affordable housing, health care and long-term care for low- to moderate-income individuals, visitwww.ncbcapitalimpact.org.
NCB is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. Headquartered in Washington, D.C., NCB also has offices in Alaska, California, Connecticut and New York. In addition, NCB has a growing community banking network in southwestern Ohio. To learn more about NCB, visitwww.ncb.coop.
ASPIRA of Florida, Inc. is a non-profit youth organization serving south Florida since 1981. ASPIRA has grown from an after-school dropout prevention program serving the inner-city Miami neighborhood of Wynwood to a South Florida Regional Latino youth organization that serves Miami-Dade, Broward and Palm Beach counties. ASPIRA of Florida operates five Youth Leadership Development/Outreach Divisions and three charter schools. Nationally, ASPIRA has become the primary Puerto Rican/Latino organization in the country. ASPIRA of Florida is an affiliate of the national organization ASPIRA.
U.S. Bancorp’s Community Development Corporation (USBCDC), with assets of nearly $4 billion, is one of the largest new markets tax credit investors in the country. It also finances affordable housing and community development projects through the use of low-income housing and historic tax credits. USBCDC is a subsidiary of U.S. Bancorp (NYSE:USB). With $223 billion in assets, U.S. Bancorp is the parent company of U.S. Bank, the sixth largest commercial bank in the United States. The company operates 2,499 banking offices and 4,867 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web atwww.usbank.com.
Established in 1994, Florida Community Loan Fund (FCLF) is among the fastest growing funds of its kind in the country and a pioneer in the community development finance field in Florida. FCLF provides capital and technical assistance to qualifying organizations with insufficient access to capital from conventional lending sources. Loans are made to non-profit organizations involved in affordable housing, economic development and essential social services in urban and rural low-income communities. It is Florida’s only statewide Community Development Financial Institution (CDFI) and the only Florida-based Community Development Entity (CDE) to have received a NMTC allocation. Visit Florida Community Loan Fund atwww.fclf.org.