NMTC Transaction Structuring and Closing

SB Friedman led the structuring and closing of two successful NMTC financings on behalf of Camillus House, a nonprofit provider of highly impactful services to the homeless population located in Miami, Florida.

In 2015, we assisted Camillus House attract and close a transaction involving $20.4 million in state and federal NMTC allocation. This “stacked” transaction involved an innovative “operating business”/working capital structure where junior unsecured loan proceeds are flexibly available for a range of capital improvements and operating expenditures across Camillus’ network of over 12 locations in Miami-Dade County.

Previously, in 2012, we had led the process of structuring and closing a $20 million NMTC financing to assist with Camillus’ development of its flagship campus in the Overtown/Civic Center neighborhood of Miami. This campus includes an emergency shelter and medical facility, a kitchen and dining facility, an administration and career training center, and associated structured parking.

SB Friedman played an essential role in navigating complex financial considerations in both transactions by:

  • Developing a deal structure that allowed Northern Trust, the project’s senior lender, to successfully use its loan proceeds as NMTC leverage;
  • Analyzing NMTC transaction’s interaction with other existing and planned layers of financing on the project, including CRA, state, county, and federal grant funds, as well as federal Low-Income Housing tax credits and the associated credit basis and collateral issues; and
  • Assisting with the integration of NMTC financing into the organization’s existing structure of land subleases from the State of Florida.

Results: Both transactions are fully closed and funded. Construction of the new campus is now complete and Camillus has launched multiple new innovative programs to serve Miami-Dade’s homeless, hard-to-serve, and “super-utilizer” populations with greater effectiveness.