New Markets Tax Credit Case Study for Safe Harbor

Safe Harbor

Domestic Violence Agency – Greenville, SC

Escaping Domestic Violence

Individuals and families impacted by domestic violence have inherently been exposed to traumatic events in their lives. Safe Harbor is committed to providing programs and services that are designed with an understanding of the impact of trauma on individuals and families, as well as a recognition of a survivor’s resiliency and ability to heal. Safe Harbor uses a trauma-informed approach to services and community work that aims to support and empower survivors, to respect and honor each individual’s experience and to avoid re-traumatization.

As a trauma-informed agency, Safe Harbor is guided by the following principles:

  • Safety
  • Trust
  • Mutual Support
  • Collaboration
  • Empowerment, Voice and Choice
  • Cultural Respect
The Project

The project involved the acquisition and renovation of a former textile mill located in West Greenville, a historically African American community in Greenville County. West Greenville is classified as a low-income neighborhood due to its median family income being only 52.9% of the larger Greenville area and a per capita income of merely $6.02. In addition to the new markets tax credits (NMTCs) renovation of the mill, the project sponsor will also develop an affordable housing facility on the remaining property.

The mill building will be renovated to create a new home to provide a continuum of Safe Harbor’s services to victims of domestic violence and their children, as well as to eliminate cultural acceptance of domestic violence through a coordinated community response, education and prevention.

In its current shelter location, Safe Harbor can house 34 women nightly in group settings. The space is consistently over capacity and needs more modern treatment protocols call for individual rooms and bathrooms to provide a greater sense of safety. The new facility will increase treatment and counseling spaces as well as increase overnight housing capacity to 56 (a 65% increase), at a time when domestic violence and partner abuse are on the rise.

Community Impact

The project expects to achieve the following goals and objectives as Safe Harbor moves into its new facility:

Emergency Shelter:
  • Current State: 275 annually served
  • Future State: 375 to be annually served at the new facility
    • Expected to be 51% minority and 90% low-income persons (LIP)
Mental Health and Legal Aid:
  • Current State: 185 annually served
  • Future State: 255 annually served at the new facility
    • Expected to be 43% minority and 58% LIP
Emergency Shelter Impact Target

The project includes a 24-hour shelter for victims of domestic violence for adults and children. During their stay, shelter residents have access to basic living necessities like meals, hygiene products, baby and children’s supplies and clothing. There are staff advocates to assist with safety planning, coping strategies, goal setting and connection to community resources, as well as mental health counseling for adults and children and support groups.

Measures of Success

Safe Harbor developed goals to determine if its various services are successful through how shelter residents adjust after leaving the facility and the results of their exit surveys.

Emergency Shelter
  • A minimum of 70% of shelter residents to transition from emergency shelter into stable, violence-free housing environments
  • A minimum of 90% of shelter residents will report that the shelter provided:
    • A safe space during their stay
    • Strategies to remain safe
    • Information about community resources
    • Skills to gain personal power to make decisions
    • Increased knowledge of domestic violence
Mental Health Counseling

A minimum of 90% of shelter residents to report:

  • Improved feelings of safety
  • Increased knowledge about domestic violence
  • Increased empowerment to make decisions in their lives
Legal Assistance

A minimum of 90% of shelter residents report improved feelings of safety as a result of Safe Harbor’s assistance through the Order of Protection filing process.

Job Creation

This project will support 50 full-time equivalent jobs, most of which will pay more than the area’s living wage and per capita income. All but one of these jobs will be accessible, and Safe Harbor sponsors internal training programs to progress all workers through to higher-wage jobs.

ALLOCATION AMOUNT:
$18,500,000

TOTAL FINANCING:
$19,170,984

FINANCING COMPLETE:
March 2024

BRIDGE LEDGER:
M1 Capital Corp

COMMUNITY DEVELOPMENT
ENTITIES (CDE):
TD Community Development Corporation (TDCDC)
South Carolina Community Loan Fund
The Innovate Fund

INVESTOR:
TD Bank

ADDRESS:
100 Gordon St.
Greenville, SC 29611

COMMUNITY OUTCOMES:
10 new permanent jobs and more expected to be added
40 retained jobs
3 Internships
20 enrollees in the Quick Jobs Program (QJP)
56 rapid housing rooms

SIZE OF FACILITY:
47,515 Square Feet (SF) Facility
29,480 SF Emergency Shelter
18,035 SF Mental Health and Support Services

Safe Harbor Resident Testimonial

“I sought help and was led to Safe Harbor. My daughter and I are in counseling now. I am sorting out the mess that abuse has caused. I am finding my voice and seeking opportunities to grow and better my life as well as my daughter’s. She will gauge her self-worth from my own self-worth. I must show her that she deserves the best, by expecting the best for myself.

Many years I suffered in silence. By telling my story and being honest with friends and family, I am taking control of my life again.”

– Safe Harbor Resident

Our Analysis

The project will assist in providing a safe place and appropriate support services for women and children suffering from domestic violence or abusive relationships. Safe Harbor focuses its philanthropic efforts on securing sufficient operation funding to maximize its impact, rather than capital campaigns. The project is taking advantage of being co-located to a low-income housing tax credit (LIHTC) community providing shared infrastructure and other cost savings, as well as utilizing the South Carolina Textile Tax Credit to further reduce capital needs. As a testament to their commitment to this work, the developer and sponsor are also donating the lion’s share of their developer’s fee to the project and providing bridge financing as needed.

The project has sought out all typical financing options, but without the ability to pay any significant rent, the tenant does not support traditional debt financing. After all other available sources of capital are exhausted, the project continues to have a financing gap of nearly $1.5 million that can only be completed with NMTC subsidy.

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Laurel Tinsley

Strategic Financing Services Advisory Leader

Managing Director, Cherry Bekaert Advisory LLC

Contributor

Laurel Tinsley

Strategic Financing Services Advisory Leader

Managing Director, Cherry Bekaert Advisory LLC