Madison County Section 108 Loan

WellSpring Resources

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

Before

Before

Before

During

During

During

After

HUD’s Kimberly and Amy Visit!

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