Building America CDE, Inc. Receives $40 Million New Markets Tax Credits Allocation from U.S. Treasury

The U.S. Department of the Treasury Community Development Financial Institutions Fund awarded Building America CDE, Inc. (Building America) $40 million in New Markets Tax Credit (NMTC) allocation authority on September 22, 2023. Building America, an AFL-CIO Housing Investment Trust subsidiary, uses NMTC allocations to finance union-built projects that revitalize neighborhoods, bring critical services to underserved communities, and catalyze additional community development.

Since inception, Building America has been awarded $280 million in NMTC allocations. Building America has deployed $231 million of its previous NMTC allocations to 27 projects, leveraging $1.2 billion in development, creating over 4,100 permanent jobs, 6,000 union construction jobs, and 630 housing units.

Recent NMTC allocations to projects by Building America include The School at Marygrove, Pittsburgh Glass Center, and Public Health Management Corporation – Public Health Campus at Cedar. Building America deployed $8.0 million in NMTC for the significant rehabilitation of The School at Marygrove, a 64,700 square-foot innovative elementary school serving grades K-5 on Marygrove campus in Detroit. Not only was the construction completed with union labor, but the ability to support union teachers and union maintenance staff reaffirms Building America’s mission to create and support good quality jobs.

Building America allocated $5.0 million in NMTC for the expansion and renovation of the Pittsburgh Glass Center’s 27,000 square-foot local non-profit public-access education center, art gallery, and glass studio. As the largest art facility in the East End of Pittsburgh, the Glass Center is a hub for innovation and creativity and has been a catalyst for economic development in its community.

Building America allocated $15 million NMTC to, the transformation of The Public Health Campus at Cedar (PHCC) from a 100-year-old, 450,000 square foot community hospital into a modern, integrated public health campus, utilizing 100% union labor for on-site construction work.  Once complete, the campus plans to include a federally qualified healthcare center and dental clinic, an inpatient pediatric crisis response and stabilization center, and several residential and non-residential social-service programs.  Maintaining its location will allow PHCC to better serve West and Southwest Philadelphia, two communities that face high rates of systemic poverty and unemployment along with poorer health outcomes and other socioeconomic challenges.

Building America’s mission is to bring jobs and services to severely distressed communities to help address endemic poverty. Building America will continue to invest in mixed-use real estate projects that support workforce development, healthcare, education, job training, and affordable housing. These impactful projects transform neighborhoods, create high-quality jobs, and bring critical services to disadvantaged communities.

About Building America:  Building America CDE, Inc. was established as a subsidiary of the AFL-CIO Housing Investment Trust (HIT) in 2010. The U.S. Treasury Department’s CDFI Fund certified Building America as a Community Development Entity, making it eligible to offer federal New Markets Tax Credits to investors. Building America has been awarded $280 million of these tax credits since 2011. More information is available on Building America’s website, http://www.buildingamericacde.com.

About the HIT:  The HIT is a fixed-income, investment-grade mutual fund with $6.3 billion in net assets. For nearly 40 years, the HIT has been a leader in putting union and public pension capital to work to produce competitive returns and achieve mission-related collateral objectives. Investors should consider HIT’s investment objectives, risks, and expenses carefully before investing. Investors may view the HIT’s current prospectus, which contains more complete information, on its website at www.aflcio-hit.com and may obtain a copy from the HIT by calling the Marketing and Investor Relations Department collect at 202-331-8055. Investors should read the current prospectus carefully before investing. Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT and HIT Subsidiary Building America CDE, Inc. project data. The data is current as of June 30, 2023. Economic impact data is in 2022 dollars and all other figures are nominal.