The Children's Aid Society to Build New Bronx Health Center to Serve 4,000 Children with “New Markets” Financing from Primary Care Development Corporation
State-of-the-Art Facility to Service Foster Children Closer to Home
BRONX, NY - Bronx children will be able to get their health care in a brand new facility, thanks to a project spearheaded by The Children’s Aid Society (CAS) with financing from the Primary Care Development Corporation (PCDC). CAS acquired the 40,000 square foot replacement facility for its Bronx Family Center in Morrisania to expand its existing medical, dental and mental health services program. The building, located at 910 East 172nd Street, will provide over 15,000 visits per year to 4,000 children living in foster care as well as children participating in other CAS programs.
“Children in foster care often have some of the most complicated health and social needs, and teams of health care providers, social workers and other professionals must collaborate to ensure each foster child receives the appropriate support,” said CAS President and CEO Richard Buery. “Integrating our primary care and social services under one roof is essential to serving this population, which is why we are delighted to partner with PCDC to build the kind of high-quality health care facility that will meet the needs of some of New York City’s most vulnerable children.”
The new site will integrate comprehensive medical, dental, mental health and social services for children and adolescents from CAS foster care and prevention programs, as well as those referred to CAS from other foster care agencies. Currently, these services are provided in a midtown Manhattan site and a clinic in the South Bronx. The new facility will also house CAS’ Bronx Medical Foster Care (MFC) program. Children who cannot be cared for by their parents come to the MFC program with chronic and severe disabilities, such as cerebral palsy, Down’s syndrome and HIV/AIDS, and are placed in appropriate foster and often permanent homes.
“A key challenge of expanding access to primary care and other health services is obtaining affordable capital financing, even for well-run, high-quality health networks like The Children’s Aid Society,” said Ronda Kotelchuck, Executive Director of PCDC. “That’s why we are thrilled to be partnering with Children’s Aid on this New Markets Loan, which will have such a direct impact on the Bronx community by expanding healthcare and community programs for children and their families.”
PCDC, a nonprofit lender that finances primary care in underserved communities throughout New York, provided the $7 million loan through its New Markets Loan Program, which offers below-market, long-term fixed rate loans to expand primary care in low-income communities. The 25-year loan carries a fixed interest rate of 5.26%, and the loan is structured so that up to 25% of the principal amount may be forgiven. Operated in conjunction with HSBC Bank, USA, N.A., the landmark investment in primary care is made possible by the US Dept. of Treasury's New Markets Tax Credits (NMTC) Program.
About The Children’s Aid Society (www.childrensaidsociety.org)
The Children’s Aid Society is an independent, not-for-profit organization established to serve the children of New York City. Our mission is to help children in poverty to succeed and thrive. We do this by providing comprehensive supports to children and their families in targeted high-needs New York City neighborhoods. Founded in 1853, it is one of the nation’s largest and most innovative non-sectarian agencies, serving New York’s neediest children. Services are provided in community schools, neighborhood centers, health clinics and camps.
About PCDC – the Primary Care Development Corporation (www.pcdcny.org)
As the first and largest Community Development Financial Institution (CDFI) in the country specializing in primary care financing for low-income communities, PCDC provides the capital to build new facilities, expand practices, and upgrade outmoded equipment, leading to better services for more patients. To date, PCDC's programs have leveraged a total investment of $255 million for 84 primary care capital projects in underserved communities across New York State. This investment has transformed 630,000 sq. feet of space into fully functioning primary care practices, while creating 1,300 construction jobs and 2,200 permanent jobs (approximately 4,400 including multipliers). This additional capacity now accommodates an additional 1.7 million medical visits annually by 575,000 underserved New Yorkers.
About the New Markets Tax Credit Program
The New Markets Tax Credit Program is a program of the U.S. Treasury's CDFI Fund, and permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities.