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40+ year old, growing behavioral health organization
Located in 50 year old church Huge demand for services; vision of a new
building and expansion Staff assigned four and five to an office Wanted to build on-site, and occupy
existing facility during construction Approached Madison County and National
Development Council
WellSpring Resources Story
Three story, 36,000 sq ft space Combines off site programs into one
location, easier access, more efficient Green features include highly efficient
HVAC and lighting systems, energy efficient windows and solar shading, green spaces around building
Fully accessible Unique blend of financing made the
building affordable and possible
New Building Features
Madison County Community Development – allowed access to consultant National Development Council (NDC), assisted with county’s first HUD 108 Loan
NDC –guided WellSpring through the finance, bidding, after-building aspects of the project
Henderson Architects – Facility AnalysisHurford Architects – New building designContegra – Construction General Contractor
Partners
Sources of Funds
$2.5 million WellSpring equity$1.25 million Federal New Markets Tax Credits (NMTC)
$1.25 million State of Illinois Companion NMTC Tax Credits
$2.5 million HUD Section 108 Loan
Combined Qualified Equity
investment $5.0 million
Wellspring $2.5 million
State of Illinois Tax Credits
U.S. Bank $2.5 million (federal and state tax credits)
Community Development Entity (NDC New Markets) New Markets
Tax Credits
WellSpring as Qualified Low Income Business (QUALIB)
receives $5.0 million in interest
only loans that are forgiven after 7 years, plus $2.0 million HUD
108 loan
State and Federal Tax Credits
$2.0 million HUD 108
Loan
How It Worked
Sell the project to the County Board –potential risk of the 108 debt is guaranteed with CDBG funds
Qualify the project with HUD as 108 Eligible - 570.208(a)(2)(B) Activities that benefits a limited clientele, at least 51% are low/mod
Demonstrate a public benefit – 570.209(b)(1)(ii) Benefit at least one low/mod person for each
$350 CDBG funds
108 Process
Twenty year repayment schedule1st three years interest only Interest rate determined by 3 month LIBOR plus 20 bpts/year
HUD 108 Public offerings available for permanent fixed interest rate financing
108 Repayment
Impact Number of community residents served has
increased by 135% since 2010, from approximately 2,700 to 6,100 in FY 2013
Created approximately 100 construction jobs and 60 new full-time jobs as a result of expansion
Agency budget has increased by 40% since 2009, from $6 million to $10 million for FY 2014