NMTC financing helps Dr. Howard Fuller Collegiate Academy construct college prep high school campus
Dr. Howard Fuller Collegiate Academy received $31 million of New Markets Tax Credit financing to support the construction of a new 71,600-square-foot college prep high school campus.
Client need
Dr. Howard Fuller Collegiate Academy is a tuition-free, not-for-profit, public charter school serving predominately African American scholars who reside in Milwaukee’s poorest neighborhoods. The Academy provides college-preparatory education for a 96% low-income student body. Many students enter the Academy with a third grade reading level, single-digit ACT score and a belief that college is not attainable for them. Through customized curriculum and a college preparatory learning environment, the Academy redirects this paradigm resulting in 100% of its graduates being accepted into college since 2012.
Since opening in 2004, the Academy has experienced continued growth in enrollment. Upon identifying the opportunity to construct a new state-of-the-art facility that would offer additional space to accommodate growth and access to partners who advance the school’s mission, the Academy initiated a capital campaign to facilitate the project. Cash flow for the school is challenged and market rate debt would compromise educational and program offerings. The New Markets Tax Credit (NMTC) subsidy was essential to ensure long-term sustainability by giving the Academy a permanent location where the school can educate more children and continue to fulfill its mission.
Baker Tilly Capital solution
The Baker Tilly Capital team helped the Academy secure $31 million of NMTC financing to support the construction of their new 71,600-square-foot college prep high school campus and an additional $4 million of NMTC financing to renovate the existing high school building to be a feeder middle school.
Results
With our NMTC solutions, Dr. Howard Fuller Collegiate Academy can:
- Serve 500 students, predominately African American, and 96% low-income in a state-of-the-art facility.
- Accelerate the establishment of a feeder middle school to serve a greater number of students earlier in their academic journey.
- Support the Academy’s track record of 100% college admission.
- Provide ACT test preparation, college preparatory programs, college tours, mentoring, professional development, character development and adversity training, dual enrollment coursework with the University of Wisconsin-Milwaukee and the Milwaukee Area Technical College (MATC) and extracurricular activities/athletics.
For more information on this topic, or to learn how Baker Tilly’s NMTC specialists can help advance your next community improvement project, contact our team.
