CAHEC New Markets Allocates $40 Million to Boost Early Education, Community Services, and Rural Healthcare

CAHEC New Markets, a New Markets Tax Credit (NMTC) Community Development Entity, has announced $40 million in NMTC allocation to three community development projects in Florida, Tennessee, and North Carolina. The investments target early childhood education, family services, and rural healthcare—critical areas that often struggle to attract private capital in low-income communities. By leveraging the NMTC program, CAHEC New Markets aims to stimulate economic development and job creation while addressing longstanding gaps in essential services.

The first investment of $11 million supports Childcare Resources' new early learning campus and resource hub in Vero Beach, Florida. The campus will replace a leased facility and expand programming from infancy through second grade, featuring a 16-classroom lab school, therapy rooms for wellness and early intervention, and a professional development incubator for educators. The expansion increases capacity by 36%, allowing the organization to serve 200 students annually, 85% of whom are low-income, including 20 seats reserved for children experiencing homelessness. The incubator will also train 300 educators annually, 74% of whom are low-income. The project is expected to create 13 new jobs and retain 50 existing positions. This investment is significant because access to quality early education and educator training can have lasting impacts on educational outcomes and economic mobility in disadvantaged communities.

The second investment of $15 million was provided to Knoxville's Community Development Corporation (KCDC) to support the Transforming Western Heights plan, a 70-acre U.S. Department of Housing and Urban Development Choice Neighborhood development. The NMTC financing will fund construction and renovation across a 35,195 square-foot campus, including an expanded Boys & Girls Club, clinic space for the University of Tennessee Medical Center's Primary Care Clinic, and a new Connections Building housing Real Good Kitchen and Junior Achievement of East Tennessee's Entrepreneurship Center, plus an adjacent public park and plaza. Once complete, the project is projected to serve more than 6,000 community members annually, 80% of whom are low-income, through youth programming, healthcare access, culinary job training, entrepreneurship support, and food security initiatives. It is expected to create 105 construction jobs and 40 permanent positions. This comprehensive approach addresses multiple social determinants of health and economic opportunity, demonstrating how NMTC financing can catalyze holistic neighborhood revitalization.

The third investment of $14 million supports FirstHealth of the Carolinas' construction of a new two-story, 40,956-square-foot critical access hospital in Troy, North Carolina. The facility will replace the Montgomery Memorial Hospital built in 1949 and deliver more efficient emergency services, rehabilitation and therapy services, and other comprehensive care to a rural, medically underserved community. Once complete, the hospital is projected to serve approximately 14,000 patients annually while creating 166 construction jobs and retaining 136 full-time positions. This investment is crucial because rural healthcare access is a persistent challenge, and replacing an aging facility can improve health outcomes and economic stability in the region.

"All three projects are driven by organizations that are deeply rooted in and have served their communities for decades," said Brian Oxford, CAHEC's Director, Community Capital. "Through New Markets Tax Credit investments, we are able to help these organizations and the community members they serve realize their visions for strong, stable, and thriving communities that provide opportunities for years to come." The NMTC program is designed to stimulate economic and community development and job creation in low-income communities by attracting private investment. CAHEC New Markets, an affiliate of CAHEC, uses NMTC allocations to finance high-impact community facility projects throughout the Southeast. These investments underscore the role of targeted tax credit financing in bridging gaps where conventional funding falls short, potentially serving as a model for similar initiatives nationwide. To learn more, visit CAHEC's website.