East Lake Foundation Lands New Markets Tax Credits for Campus Expansion Project Led by PNC Bank
For Immediate Release
ATLANTA, Oct. 15, 2013 – The East Lake Foundation has received $34 million in New Markets Tax Credits (NMTC) from PNC Bank and other funders to help complete construction for Charles R. Drew Charter School’s new 200,000 square foot campus slated to open next
“PNC brought together an engaged group of public and private partners to fund a portion of this expansion, which will give nearly 1,000 new students from low to moderate- income families an opportunity to learn and succeed in one of Georgia’s top ranked schools,” said Daniel J. Shoy, Jr., Chief Operating Officer, East Lake Foundation.
The Foundation secured a $7 million allocation from PNC and more than $10 million in equity through the NMTC program. An additional $27 million in NMTC investments for the expansion project came from multiple partners including $12 million from Community Affordable Housing Equity Corporation (CAHEC), Raleigh, NC; $10 million from Low Income Investment Fund (LIIF), San Francisco, CA; and $5 million from Urban America, New York, NY.
“Drew Charter School and the East Lake Foundation have made remarkable strides in improving educational attainment in the East Lake neighborhood. CAHEC New Markets is delighted to provide low-interest financing through the New Markets Tax Credit program to further the school’s positive impact,” said Brian Oxford, Senior New Markets Manager.
Currently under construction, the $73 million Drew Charter School Junior and Senior Academies at the Charlie Yates Campus will allow the school to expand enrollment to include high school students. When it opens in Summer 2014, the new LEED Gold facility is expected to serve 1,000 6th-12th graders in Atlanta’s East Lake community and employ an estimated 485 teachers and staff.
“The East Lake Foundation chose PNC as their primary lender for this project because we have extensive experience in leveraging the New Markets Tax Credit program to promote economic growth opportunities in underserved communities,” said Eddie Meyers, regional president, PNC Bank, Greater Georgia.
Charles R. Drew Charter School opened in 2000, as the first charter school in Atlanta. In Drew’s first year of operations, it was ranked 69th, the worst performing school in Atlanta Public Schools (APS). Today, Drew is ranked first among all APS elementary schools and third among APS middle schools.
Nancy O. Andrews, President and CEO, LIIF said, “The transformation of the East Lake neighborhood has been nothing short of extraordinary. Drew Charter School is at the heart of the changes in this community. LIIF is proud to have been able to invest in the expansion of the school, which will fulfill the promise of cradle-to-college education for East Lake families.”
Established by Congress in 2000 in an effort to stimulate investment and economic growth in designated low-income communities, the NMTC program helps raise investor capital and leverages public and private funding to provide borrowers with financing that comes in the form of very favorable rates and below market, flexible terms.
About the Organizations
Founded in 1995 on the belief that everyone deserves a chance to succeed, the East Lake Foundation (www.eastlakefoundation.org) collaborates with public and private organizations to provide tools that enable Atlanta’s East Lake residents to build a better future through its model for community revitalization. The East Lake model includes cradle-to-college education at Charles R. Drew Charter School and its early learning partners, mixed-income housing at The Villages of East Lake and community wellness through programs including The First Tee® of East Lake, the East Lake Community Learning Garden and Urban Farm and our partnership with the East Lake YMCA. This approach to building a strong community not only helps break the cycle of poverty, but creates a place where people of all ages and incomes choose to live. East Lake has become a model for integrated community revitalization programs across the country.
PNC Bank is a member of The PNC Financial Services Group, Inc. (www.pnc.com), which is one of the nation’s largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. Follow @PNCNews on Twitter for breaking news, updates and announcements from PNC.
Headquartered in Raleigh, North Carolina, CAHEC is a nonprofit tax credit syndicator that helps strengthen communities. CAHEC works with investors and developers throughout the Southeast and mid- Atlantic region to raise and invest capital in affordable rental housing, historic preservation, and mixed- use community revitalization projects. In addition, CAHEC provides capital through a series of Community Investments that empower residents, promote the development of ownership housing, and foster sustainability within the community.
The Low Income Investment Fund (LIIF) invests capital to support healthy families and communities. Since 1984, LIIF has served 1.4 million people by investing more than $1.3 billion. Over its history, LIIF has provided financing and technical assistance to create and preserve affordable housing, child care centers, schools, transit-oriented developments, health clinics and healthy food retail in distressed neighborhoods nationwide. LIIF’s work has generated $25 billion in family income and societal benefits. LIIF has offices in San Francisco, Los Angeles, New York City and Washington, D.C. For more information about LIIF, visit www.liifund.org.