YWCA Greater Los Angeles Area - Eliminating Racism, Empowering Women

Funding Secured for Construction of Downtown LA YWCA Job Corps Urban Campus Thanks to New Market

Wednesday January 13, 2010

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For immediate release:

Contact: CRA/LA Public Information
213-977-1951

LOS ANGELES - With $70 million generated through the New Markets Tax Credits (NMTC) financing structure, the YWCA Greater Los Angeles (GLA) can begin construction on its new state-of-the art downtown campus. "Thanks to the New Markets Tax Credits program, the new YWCA downtown campus will come to fruition," Mayor Antonio Villaraigosa said. "This is not just the construction of a new state -of-the-art facility, this is the creation of an educational haven that will provide hundreds of young men and women with the job training they need for a stable, successful future."

The YWCA GLA Urban Campus is the first project funded by the Los Angeles Development Fund (LADF), a nonprofit organization established in 2007 to manage the City's New Markets Tax Credits program.

YWCA Greater Los Angeles CEO, Faye Washington said, "The YWCA had funds in place to support the project, the New Market Tax Credit structure allowed us to close the gaps as well as offer a platform for community minded corporations to participate in a project that will benefit Los Angeles youth for generations to come." Washington added, "We applaud the entities that went beyond rhetoric to provide funding that will have generational impact. This support extends well beyond the construction of the building. It creates a triple net bottom line, which will change the lives of our youth year after year after year."

The NMTC program is a federal tax initiative designed to promote economic development in low-income communities. LADF received a $75 million allocation. Through the NMTC program, the LADF sells tax credits to investors in exchange for cash. The money raised from investors is then used to provide lowcost financing to developers to build qualified projects. The LADF is managed by the Community Redevelopment Agency of the City of Los Angeles (CRA/LA). "The LADF is very proud to be a part of advancing this important project forward which will help many hard-working, dedicated young people move into stable, high quality jobs. We applaud the YWCA GLA's perseverance and commitment in moving this project forward over the past five years and the incredible work they do every day to help our communities rebuild and thrive," said Calvin Hollis, LADF's President. "And we would like to thank JP Morgan Chase for investing in LADF's first NMTC effort."

The $73 million YWCA development project received a significant investment of NMTC equity through a $15.5 million allocation from Enterprise, $15 million from LISC and $20 million from LADF. JPMorgan Chase is the investor for those tax credits from all three sources. In addition, Bank of America Merrill Lynch is the investor for $20 million in NMTC from its own sub-allocation and provided critical construction and permanent loans to this development.

"Our NMTC stimulus allocation is going a long way to provide community services, affordable housing, office space and retail in designated low-income communities across the country," said Joe Wesolowski, senior vice president for Structured Finance, Enterprise Community Investment, Inc. "This is our third transaction to close this year as part of our stimulus allocation and we're excited to bring the new YWCA campus, employment training and jobs to downtown Los Angeles. We continue to support Mayor Villaraigosa's five-year housing plan with creative developments like this one."

"The New Markets Tax Credit program targets projects that stimulate job growth and benefit low-income individuals and communities, as the YWCA of Greater Los Angeles Urban Campus project will do. Chase is proud to be part of the YWCA transaction and looks forward to its successful completion," said Kevin Goldsmith, Vice President, New Markets Tax Credit Group, JPMorgan Chase.

The YWCA is constructing its new facility at 1020 Olive Street, just south of Olympic Boulevard and expanding its capacity to provide job training and placement opportunities to area youth with a new Job Corps Urban Campus. A 155,000-square-foot building will house the YWCA Job Corps Center and enable the YWCA to consolidate the program's housing and services - currently scattered across six sites - into one location. The seven-story, "U"shaped building will feature a commercial kitchen for culinary training, a dining hall, classrooms, a health suite and an exterior courtyard. Four flo ors are residential, with 200 dormitory-style rooms, lounges, laundry facilities and study rooms that will house 400 Job Corps trainees. The building also will feature a gated entry and 24-hour security. "These funds have made it possible for the YWCA to move forward on a project that will bring housing, training, and much needed services to the people of our community and Los Angeles as a whole. This partnership will result in a truly positive development," said Councilwoman Jan Perry (CD9).

"LISC is so pleased to be a part of a project that creates hundreds of new jobs and improves the downtown L.A. streetscape, all while helping put low-income youth on the path to economicn independence," noted Miguel Garcia, executive director of LISC's Los Angeles program. "This is precisely the kind of project that LISC's Building Sustainable Communities work is intended to support. We are grateful to JPMorgan Chase for capitalizing our $14.7 million New Markets Tax Credit investment and to YWCA GLA for its ongoin g commitment to the kind of job training and financial counseling that helps change lives," Garcia said.

The YWCA purchased the site in May 2004 for a total of $3.5 million. The purchase was partly financed by CRA/LA. In November 2005, CRA/LA converted its loan to a grant and the Deed of Trust was conveyed.

A groundbreaking ceremony for the new YWCA facility is planned for early 2010.
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