PNC Bank Drives Change in Portland Through Tax Credit Solutions

While the details of tax credit investment deals can be complex, the needs they are ultimately designed to meet are often among the most basic and fundamental.

Such is the case with two projects the PNC Tax Credit Solutions business, part of PNC Real Estate, recently supported in Portland, Oregon.

La Plaza Esperanza is a multipurpose building focused on meeting the needs of the Latino community in Rockwood, a neighborhood in east Portland. The facility, which is currently under construction, will house an early childhood education program, a culturally specific preschool, and an expanded at-risk youth and teens program. It is the result of longstanding efforts on the part of The Latino Network, one of the only service providers in the area dedicated exclusively to improving the Latino community’s health and wellness, education, and youth development.

“One of the aspects of this project that really resonated with us was The Latino Network’s focus on early childhood education, as that is an important philanthropic focus at PNC,” said Portland Regional President JT Hutchinson. “PNC has a national reach, but we’re also very much a main street bank, and we want to find ways to make a meaningful difference in the local communities where we operate.”

The investment in terms of New Markets Tax Credit (NMTC) allocation bears out PNC’s commitment to bringing the La Plaza Esperanza project to life. “Out of $21 million total in New Markets Tax Credits involved in this deal, PNC allocated $5 million. That’s a substantial amount of allocation, which is a precious resource, to any one deal,” said Todd Crow, head of Tax Credit Solutions for PNC. “This was also PNC’s first NMTC deal in Oregon, so it’s an exciting project for us as we build upon the foundation we’ve already established in the region.”

The Low-Income Housing Tax Credit (LIHTC) team has been active in helping bring affordable housing projects to life in the Portland area for more than 25 years. In February 2023, PNC provided $18 million in LIHTC equity financing for the development of Tistilal Village, an apartment complex with affordable homes specifically for the Native American community. The development partner in the deal, the Native American Youth and Family Center (NAYA), serves Native Americans across the Portland area through housing development, community economic development, child and elder services, and college and career services. Of the 58 new apartment units in Tistilal Village, 16 will be set aside for those who formerly or are currently experiencing homelessness, and the property will also include space for community activities.

Both Tistilal Village and La Plaza Esperanza were constructed by Colas Construction, the largest Black-owned construction firm in the Pacific Northwest, which specializes in affordable housing, K-12 education, healthcare, and tenant improvements in the Portland metro area.

“Tax credit deals like these can be very complicated, but ultimately they meet some very simple, important needs,” said Crow. “Our Tax Credit Solutions business looks forward to continuing to bring to bear their skill and expertise in managing these kinds of transactions with results that have real, meaningful impact in the community.”

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PNC can provide innovative tax credit equity financing solutions for Historic Tax Credit (HTC), New Markets Tax Credit (NMTC), and Low-Income Housing Tax Credit (LIHTC) projects. For more information, reach out to your PNC Relationship Manager, or click here to learn more.

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