Detroit, June 17, 2011— Chase invested $2.8 million – part of $10 million in tax-credit financing the bank arranged — to help nonprofit Southwest Solutions buy a century-old former cigar factory and open it today as a modern community wellness center in Southwest Detroit.
The integrated health care center will serve 10,000 low-income families through a collaboration of six agencies led by Southwest Solutions. Known as 5716 Wellness – for its address on Michigan Avenue — the center will provide medical, dental, obstetrical and behavioral health care as well as other counseling and human services.
“As a national leader in community development finance, Chase helped Southwest Solutions finance affordable services to underserved Detroiters,” said Sarah McClelland, president of Chase in Michigan. “We believe it’s critical to provide capital to help support projects that make a difference both socially and economically in our community.”
The tax credit financing came through New Markets Tax Credits, a highly competitive federal program, which helps lenders like Chase provide affordable capital for economic development in underserved areas.
Chase financing was supplemented by investments from other sources including the Living Cities Catalyst Fund, the Local Initiatives Support Corp., NeighborWorks, Detroit Investment Fund and Covenant Care. Michigan historic and brownfield tax credits also served as financing sources for the redevelopment project.