Case Study

NMTC Case Study for Faith Family Medical Center

June 21, 2021

Project

Faith Family Medical Center (FFMC) began in 1999 as an outreach mission for two Nashville based doctors dedicated to providing primary medical care to uninsured patients. It has grown from that small clinic to a full service medical center providing the best comprehensive care for working uninsured and underinsured Tennesseans. In addition to the uninsured nature of the patients,
83% live at or below 200% of the Federal Poverty Level with 36% under the FPL. Patients, whose financial status ranges from below the federal poverty level to 400% of the federal poverty level, pay between $20 and $55 per visit. FFMC provides primary care, diagnostic testing, disease management, specialty care, pharmacy services and wellness programming.

The project involves FFMC acquiring additional property adjacent to their current location and constructing a 17,000 SF medical center. The new space will relieve overcrowding in their current facility plus providing much needed room for growth in the coming years. With the use of the NMTC subsidy, FFMC was able to build a building for the future rather than just the immediate need. Based the size of the building and current needs, FFMC will be able to lease a portion of the new space to other similarly aligned, non-profit health care providers. Even in their overcrowded current space, FFMC is able to serve over 2,600 unique patients (95% uninsured) with over 8,900 total visits annually. With the new facility, over the NMTC compliance period, FFMC will be able to expand services to 4,300 unique patients with an increase to 15,000 total visits annually.

The Financing

The approximately $9.5 million dollar project was financed utilizing bridge debt from The Reinvestment Fund to support a $7 million capital campaign used through a selfleveraged structure, NMTC equity from SunTrust Community Capital and $8.5 million of New Markets Tax Credit Allocation provided by The Reinvestment Fund, Inc.

“When we began our capital campaign to build a larger facility, we planned to build a 10,000 sq. ft. one story building on our current property. Through Tax Advantage Group’s leadership in walking us through the NMTC journey, we are now able to build a two story 17,000 sq. ft. building that will allow us to grow and widen our reach even more. The expansion of our services would not be possible without the NMTC program, and that program would have been unattainable if it weren’t for Tax Advantage Group’s diligent work and guidance throughout the process.”

Laura Hobson, President & CEO, Faith Family Medical Center

TOTAL PROJECT COST:

$9,500,000

 

NMTC ALLOCATION:

$8,500,000

 

FINANCING COMPLETE:

August 2019

 

PROJECT SPONSOR:

Faith Family Medical Center

 

CDES:

Reinvestment Fund

 

NMTC INVESTOR:

SunTrust Bank

 

LEVERAGED LENDER:

Faith Family Medical Center

 

ADDRESS:

324 & 326 21st Avenue, North
Nashville, TN 37203

 

CENSUS TRACT:

47037014400

 

COMMUNITY OUTCOMES:

17,000 SF
63 Direct Jobs
8,900 Uninsured patient visits annually

 

LOW-INCOME COMMUNITY:

Poverty Rate: 46.2%
Median Family Income: 34.13% Unemployment Rate: 12.4% Unemployment Ratio: 1.49x Federal MUA
Federal Promise Zone

 

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