The first Green House® Homes in Massachusetts were made possible through a highly unique and innovative combination of public-private financing. NCB Capital Impact and the Massachusetts Housing Investment Corporation deployed $29 million in New Markets Tax Credit (NMTC) allocations to assist the Chelsea Jewish Nursing Home in the development of a $31.4 million innovative skilled nursing development. The Chelsea Jewish Nursing Home Foundation raised over $13 million in charitable donations to facilitate the transaction.
The Leonard Florence Center for Living in Chelsea, Massachusetts received the funds to construct 10 Green House® Homes of 10 units each in a distinctive, 70,600 square-foot, five-story high-rise designed to maintain the feel of individual homes while occupying the limited space available in a densely populated urban area. 40 of the 100 beds will be dedicated to underserved groups including people with multiple sclerosis or ALS/Lou Gehrig’s disease, and members of the gay & lesbian community. Another 30 beds will be dedicated to short-term Medicare residents receiving rehabilitation after a hospital stay. It is expected that the new facility will be approximately 50% Medicaid, 30% Medicare and 20% private pay.
With grant funding from The Robert Wood Johnson Foundation (RWJF), NCB Capital Impact is pursuing the rapid replication of the Green House® model on a national level, offering technical assistance and financing to organizations interested in developing this new skilled nursing approach with social-friendly, homelike facilities for 10 to 12 residents. “The Leonard Florence Center and NCB Capital Impact’s Green House® Initiative will create an important, new compassionate model for how we deal with our frailest elders and those with serious life-changing illnesses,” stated Barry Berman from Chelsea Jewish Nursing Home.
“Thanks to the New Markets Tax Credit subsidy and the sponsor's enthusiastic and highly successful fundraising, the project will end up with more than $20 million in equity, greatly helping with affordability.” said Terry Simonette, President and CEO of NCB Capital Impact.
To date, NCB Capital Impact has been awarded $229 Million in New Markets Tax Credits and issued investments totaling $168 Million to 20 community-based organizations for new and improved health care and education facilities serving 350,000 patients and 4,000 students, 92% of which are located in highly distressed communities.