The Hope Enterprise Corporation and the 28,000-member Hope Community Credit Union earmarked some New Markets Tax Credit money to help renovate an elementary school.
The NMTC program, administered by the U.S. Treasury Department's Community Development Financial Institution's Fund, provides Community Development Financial Institutions with funds provided by corporations in exchange for tax credits.
Hope used $6 million in NMTC Funds provided by a subsidiary of US Bancorp through a community development organization to provide a loan for the renovation of McDonough 42 Elementary School, located in a historic New Orleans neighborhood.
The credit union said the school, built in 1925, has continuously operated as an elementary school and was only briefly unoccupied after Hurricane Katrina. However, the facility has been deteriorating due to lack of investment.
Hope said the renovation loan will allow for the full renovation of the historic structure, transforming it into a 21st century school building. The renovations will help the school meet its goal to prepare students for college and to challenge and support each student to achieve his or her highest potential.
“The Recovery School District values HOPE’s partnership as we work to transform the educational landscape for thousands of New Orleans school children,” said Superintendent Patrick Dobard. “HOPE’s investment in McDonogh 42 will ensure that hundreds of New Orleans public school students will attend school in a newly renovated, state-of-the-art facility where they can thrive in a rigorous academic program that will prepare them for their futures.”
HOPE CEO Bill Bynum said his credit union is excited to support the project.
“By providing students with access to quality education and the neighborhoods surrounding McDonogh 42 with improved infrastructure, we create stronger communities that are equipped to be successful,” he said. “The McDonogh 42 renovation is an excellent example of what the New Markets Tax Credit program was created to do.”