NEW YORK CITY REGIONAL CENTER-MANAGED ENTITY PROVIDES FUNDING FOR 7 HEAD START EARLY CHILDHOOD CENTERS

$20 million closed transaction will help further Grand Street Settlement’s mission to expand access to affordable child care for low-income families in New York City.

New York, NY, Oct. 22, 2025 (GLOBE NEWSWIRE) -- The New York City Regional Center is pleased to announce the closing of $20 million in New Market Tax Credit financing to support working capital and operating costs of seven Head Start early childhood education centers in Brooklyn and the Bronx.  The new centers will be run by Grand Street Settlement (“Grand Street”), one of the largest and most impactful social services organizations in New York City.  Grand Street offers safe and nurturing early childhood education programs for children from age 6 weeks up to 5 years.

The financing will support new early childhood center programs operating in Sunset Park, Brooklyn and Pelham Parkway, Mount Eden, Mott Haven, West Farms, and Crotona Park neighborhoods in the Bronx.   The capital will create four new facilities with the capacity to serve 292 children and expand the capacity of three existing facilities to accommodate 177 children.  

“This New Market Tax Credit investment is more than a financial transaction.  It is a bold commitment to the future of children and families in New York City,” said Robert Cordero, Chief Executive Officer of Grand Street.  “Thanks to the creativity and dedication of our partners, we now have greater capacity to expand critical early childhood programs where families need them most.”

“High quality programs like Grand Street lay the groundwork for future success by developing key skills for children throughout the city,” said George Olsen, Co-Founder of New York City Regional Center.  “We are honored and excited to assist the great work of Grand Street.”

“Access to affordable early childhood education is crucial for parents’ job stability and supports the city’s overall economic health,” said Paul Levinsohn, Co-Founder of New York City Regional Center.  “This infusion of capital furthers Grand Street’s mission to expand access to affordable child care for low-income families in New York City.” 

Grand Street has been providing quality programs and services to children and families in need for 109 years.  This is the first time that the non-profit is expanding their services in the Bronx. 

“The Bronx has the least number of center-based child care options for families in the entire city of New York,” said Cordero.  We are looking to change that.”

Grand Street was established in 1916 to support families of immigrants arriving in New York City seeking housing and employment opportunities.  Today, Grand Street serves over 18,000 New Yorkers and has grown exponentially over the past decade, with a network of over 45 community centers, schools, and partnership sites supporting underserved neighborhoods throughout New York City.  Grand Street centers employ a hands-on learning approach that encourages children to follow their curiosity and explore through play.  Children with physical and learning disabilities are supported by expert staff in integrated classrooms to ensure a safe and comprehensive learning environment.

The $20 million transaction utilized a portion of a previous $45 million New Market Tax Credit award from the U.S. Department of Treasury to NYCR-CDE, a Community Development Entity managed by New York City Regional Center.  To receive a New Market Tax Credit allocation award, NYCR-CDE was required to demonstrate a mission and track record of providing investment capital for low-income communities.

Since 2016, NYCR-CDE has received seven separate annual tax credit awards totaling $315 million.  Examples of previous fundings include:

• Construction of the National Urban League’s new headquarters in Harlem
• Redevelopment of the Major Owens Community Center in Brooklyn
• Redevelopment of the Armory Track & Field Center in Washington Heights
• Expansion of St. John’s Episcopal Hospital Center in Far Rockaway
• Construction of eleven charter schools 

• • $23 million for DREAM in the South Bronx 
  • $20 million for Achievement First Linden Middle School in Brooklyn
  • $20 million for KIPP NYC in the Bronx
  • $19 million for Bold Charter School in the Bronx
  • $18 million for Neighborhood Charter School in the Bronx
  • $18 million for Promise Academy II in East Harlem
  • $15 million for Comp Sci High in the Bronx
  • $15 million for DREAM in the South Bronx

• • $15 million for Charter School for Law and Social Justice in the Bronx

• • $11 million for Ascend Charter Schools in Brooklyn

The New Market Tax Credit Program was created by Congress in 2000 in an effort to stimulate private investment and economic growth in low-income neighborhoods and rural communities that lack access to capital. Historically, low-income communities often have difficulty attracting investment.  The program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies. Private capital is incentivized by providing federal income tax credits to investors in exchange for making equity investments in low-income neighborhoods.

About New York City Regional Center

New York City Regional Center (“NYCRC”) was approved by the United States Citizenship and Immigration Services in 2008 to secure foreign investment for real estate and infrastructure projects under the EB-5 Immigrant Investor Program.  Congress created the EB-5 program to stimulate economic development through foreign investment. The program’s mandate is to use foreign investment to spur job creation while simultaneously affording eligible foreign investors the opportunity to become lawful permanent residents of the United States.  NYCRC was the first EB-5 regional center approved in New York City. 

Over the past 17 years, NYCRC has put $1.58 billion of EB-5 capital and $315 million of New Market Tax Credit capital to work across a broad spectrum of infrastructure and real estate projects in New York City.  Much of this capital has been invested in low-income areas in need of long-term economic growth.  Examples include:

• $873 million to finance ground-up, redevelopment, and infrastructure projects in Brooklyn, including seven projects totaling $385 million in the Brooklyn Navy Yard
• $321 million to finance ground-up construction in the Bronx
• $232.5 million to finance the construction of a public high-speed wireless infrastructure network in New York City subway stations and along city streets
• $127.5 million to finance ground-up and redevelopment projects in Washington Heights (an Upper Manhattan Empowerment Zone)

To date, 42 projects throughout New York City have utilized NYCRC New Market Tax Credit and EB-5 capital to assist in the construction of over 6.9 million square feet of new development and renovation as well as critical infrastructure initiatives. 

About the New Markets Tax Credit Program

Established by Congress in 2000, the New Markets Tax Credit Program assists economically distressed communities attract private investment capital.  This federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible.  Communities benefit from the jobs associated with investments in manufacturing, retail, and technology.  Communities also benefit from greater access to housing and public facilities in health, education, and childcare. 

Through the New Market Tax Credit Program, the U.S. Department of Treasury allocates tax credit authority to Community Development Entities (CDEs) through a competitive application process.  CDEs are financial intermediaries through which investment capital flows from an investor to a qualified business located in a low-income community.  CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE.  The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period.  With these capital investments, CDEs can make loans and investments to businesses operating in distressed areas that have better rates, terms, and flexibility than the market.  Historically, for every $1 invested by the federal government, the New Market Tax Credit Program awards generated $8 of private investment.  

Since 2001, $81 billion in New Market Tax Credits have been invested in low-income communities resulting in the construction or rehabilitation of approximately 259 million square feet of commercial real estate. 

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