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For Your Life April 24, 2024

Case Study: How Old National Bank Impacts Underserved Communities, Provides Affordable Housing

Established in 2015, the Old National Bank (ONB) Community Equity team plays a critical role in community development and sustainability projects throughout Old National’s footprint. 

With extensive expertise in tax credits (which are government programs designed to incentivize private investment), the team provides equity capital and loans to support projects that rehabilitate historic buildings, provide affordable housing, invest in low-income communities and generate alternative energy.

Old National participates by making equity investments in the underlying projects. ONB Community Equity provides tax credit financing expertise in:

  • Historic Tax Credits
  • Alternative Energy Tax Credits
  • New Markets Tax Credits
  • Affordable Housing Tax Credits
  • State Tax Credits

Old National CDE Corporation: New Markets Tax Credit Allocation Award

In September 2023, Old National CDE Corporation (ON CDE), a subsidiary of ONB Community Equity, received a $20 million New Markets Tax Credit (NMTC) allocation from the Community Development Financial Institutions Fund. ON CDE plans to fully deploy the $20 million allocation into four to five projects across 2024. 

As a certified Community Development Entity, ON CDE allocates tax credits to community facilities and job creating projects in distressed census tracts across our service area. ON CDE prioritizes allocations to businesses and non-profits that fulfill the needs of the communities they serve, particularly those that will expand the provision of goods and services to low-income communities and/or persons. An additional emphasis is placed on programs that support healthy households.

Paired with ONB Community Equity’s New Markets Tax Credit investment capability, the Tax Credit Group uses several powerful tools to extend Old National’s reach to disadvantaged communities and businesses within our footprint.

Old National's track record of impacting underserved communities includes:

  • Since 2015, ONB Community Equity has provided $334 million in equity funding to underserved businesses and communities.
  • During this same timeframe, ONB Community Equity has directly funded projects with a total construction cost of $900 million and, when including investment through funds, has supported projects with a total cost of $1.57 billion.

Case Study: Beechwood Court Apartments and the Low-Income Housing Tax Credit

An example of the work that ONB Community Equity performs to strengthen and sustain communities is our investments in Low-Income Housing Tax Credit projects.

Beechwood Court Apartments in New Albany, Ind., previously existed as an 80-year-old barrack-style property in major need of rehabilitation in a low-income community. The New Albany Housing Authority has owned the property for many years and will remain an owner, as well as a manager, with the help of a local developer and manager, the Marian Development Group.

The apartment complex will be demolished and rebuilt as a single three-story building, along with 19 two-story duplexes and 15 single-family homes totaling 83 units. The new complex will include project-based vouchers for all units, making it even more affordable for low-income tenants and allowing rent charged to be based on a tenant’s actual income. The vouchers are being provided by the Indiana Housing Community Development Authority.

ONB Community Equity provided $8.6 million in Low-Income Tax Credit Equity to support the $21 million project, as well as a bridge loan in the amount of $3.5 million.

For additional information on what Old National does for local communities, go to oldnational.com/about-us/community.

 

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