Roeder & Company, LLC is pleased to announce what is believed to be the first ever closing of a “Twinned” New Markets Tax Credit and Historic Tax Credit financing on Native Trust Land. The project is located in a non-metro census tract in the underserved state of Arizona on the White Mountain Apache Reservation. The Home of Harmony project is the rehabilitation and renewal of the boys’ dormitory at Fort Apache that in earlier times held as many as 400 students in 26 student rooms. The building was originally built in 1932. Fort Apache has a complex and difficult past shaped by the expansion of a colonizing America into traditional Apache lands. Viewed by many as a site of trauma that still haunts the Apache Nation, it also stands as a testament to the strength and creativity with which Apache people and their leaders maintained their sovereignty and cultural resilience in the face of persistent violence and injustice over more than a century.
Over time the building had fallen into disrepair and hadn’t been used in over 25 years. The Fort Apache Heritage Foundation (“Foundation”) is converting the ground floor into retail and meeting space, the second floor into office space, and the third floor into apartments. The Foundation and Roeder & Company sourced $13.5 million in federal NMTC allocation from Chickasaw CDE and US Bank and almost $3 million of Historic Tax credits. In total, the tax credits are providing approximately $4 million of grant-like subsidy for the project. US Bank served as both the tax credit investor and provided $2.5 million of NMTC allocation.
Krista Beazley, Chief Executive Officer of the Foundation said, “We had a $5 million grant from the Economic Developent Administration, an Arizona State Parks grant of $500,000 and $3.5 million of equity, but we were still well short of what we needed. Mr. Roeder visited Chairman Velasquez, who had invited me to the meeting to explore NMTCs as a funding source. The timing was perfect. Reynold provided an overview of the tax credit program and we continued to pursue it after his initial presentation.”
“At first, we were skeptical that the addition of Historic Tax Credits would be possible, but Mr. Roeder was convincing, and we still had a $2 million gap in our capital stack. He was able to get us term sheets for both tax credits from US Bank, and shortly thereafter we were into due diligence and draft agreements,” said Joeseph Kalt, Foundation Director.
Krista Beazley further stated, “The Boys Dorm building rehabilitation will serve as a catalyst and cornerstone for the further development of Fort Apache. The tax credit transaction structure and related documents can now serve as the basis for financing additional projects at Fort Apache.”
“The twinning of both credits on trust land and the addition of residential rental property presented more than a few technical challenges, but we had a great team of Community Development Entities, consultants, lawyers, and accountants in addition to the Foundation and Tribe,” said Reynold Roeder, Roeder & Company CEO. “We look forward to working with the Tribe and Foundation on additional projects.”
For more information on the Foundation please visit www.fortapachearizona.org
Over time the building had fallen into disrepair and hadn’t been used in over 25 years. The Fort Apache Heritage Foundation (“Foundation”) is converting the ground floor into retail and meeting space, the second floor into office space, and the third floor into apartments. The Foundation and Roeder & Company sourced $13.5 million in federal NMTC allocation from Chickasaw CDE and US Bank and almost $3 million of Historic Tax credits. In total, the tax credits are providing approximately $4 million of grant-like subsidy for the project. US Bank served as both the tax credit investor and provided $2.5 million of NMTC allocation.
Krista Beazley, Chief Executive Officer of the Foundation said, “We had a $5 million grant from the Economic Developent Administration, an Arizona State Parks grant of $500,000 and $3.5 million of equity, but we were still well short of what we needed. Mr. Roeder visited Chairman Velasquez, who had invited me to the meeting to explore NMTCs as a funding source. The timing was perfect. Reynold provided an overview of the tax credit program and we continued to pursue it after his initial presentation.”
“At first, we were skeptical that the addition of Historic Tax Credits would be possible, but Mr. Roeder was convincing, and we still had a $2 million gap in our capital stack. He was able to get us term sheets for both tax credits from US Bank, and shortly thereafter we were into due diligence and draft agreements,” said Joeseph Kalt, Foundation Director.
Krista Beazley further stated, “The Boys Dorm building rehabilitation will serve as a catalyst and cornerstone for the further development of Fort Apache. The tax credit transaction structure and related documents can now serve as the basis for financing additional projects at Fort Apache.”
“The twinning of both credits on trust land and the addition of residential rental property presented more than a few technical challenges, but we had a great team of Community Development Entities, consultants, lawyers, and accountants in addition to the Foundation and Tribe,” said Reynold Roeder, Roeder & Company CEO. “We look forward to working with the Tribe and Foundation on additional projects.”
For more information on the Foundation please visit www.fortapachearizona.org
RSS Feed