With support from Regions Bank, New Markets Tax Credit allotment will help Kids’ Meals construct a new food distribution and social services center
BlueHub Capital, a national nonprofit community development finance organization, today announces a $32.5 million New Markets Tax Credit (NMTC) investment in Kids’ Meals, a Houston-based nonprofit delivering millions of free, healthy meals to the homes of hungry preschool-aged children who face debilitating hunger due to extreme poverty.
Kids’ Meals serves families trapped in generational poverty, as well as families formerly considered members of the middle class who have slipped into situational poverty and are new to the system of food pantries and welfare. All of Kids’ Meals clients are families with low incomes and nearly all are people of color. The organization focuses on children ages five and under because they do not have access to free and reduced lunch at school during the most formative time for a child’s brain development.
The investment will fund, in part, the construction of the Building Hope Campus, a new 50,000 square foot food distribution and social services center in Houston. A groundbreaking ceremony for the new building was held today to commemorate the start of construction. The facility is designed to optimize food and supply storage, provide welcoming volunteer spaces and accommodate staff and clients through education suites, conference rooms, and training areas. The new building’s enhanced van parking and loading docks will increase the organization’s capacity to serve Harris County and Montgomery County's most vulnerable residents.
“We are incredibly honored and humbled to receive such an impactful investment from BlueHub Capital,” said Beth Harp, CEO of Kids’ Meals. “Every day, hungry kids across the city count on us to deliver what is sometimes their only meal, and through this transformative commitment, we will be able to proceed with construction on our new campus. We are grateful to have their leadership on this deal, which led to meeting Regions Bank, another partner who will play a pivotal role as we continue to fundraise.”
BlueHub Capital worked with Regions Bank, which served as the investor and purchased the NMTCs. This deal resulted in a $6.3 million subsidy to Kids’ Meals, which will support the retention of 44 permanent full-time employees, and help to increase the number of meals served annually from 2.7 million to more than 7 million, benefitting 14,550 unique families. In addition to the NMTC subsidy, the new facility will be funded by the Building Hope Campaign. Since its launch in 2021, the organization has received generous donations, including over $1 million commitments each from The Huffington Foundation, Group 1 Automotive, The Brown Foundation, The Chao Foundation, The Cullen Foundation, The Fondren Foundation, The W.T. & Louise J. Moran Foundation and numerous individuals and anonymous donors. Kids’ Meals is continuing to fundraise to complete construction and secure a building reserve fund for the new facility.
“Food insecurity is a complex and widespread problem, yet Kids’ Meals has figured out a way to serve an overlooked population at a critical time in their young lives,” said Elyse Cherry, CEO of BlueHub Capital. “Healthy meals paired with wrap-around services like financial literacy and job training is an impactful combination. BlueHub’s mission of building healthy communities completely aligns with Kids’ Meals work and we’re so pleased the New Markets Tax Credit investment will broaden its reach and network.”
Fighting Childhood Hunger in Houston
Approximately 48% of the residents served by Kids’ Meals lack access to the transportation resources needed to obtain food outside of their food desert communities. Kids’ Meals saves families an average of $6 to $9 per day per child, which has been shown to be enough to help pay the rent to prevent homelessness, afford transportation to work, maintain utilities or buy additional food to sustain a family.
“Kids’ Meals research shows just how tight family budgets are,” said Brenda Loya, president of BlueHub Managed Assets, an affiliate of BlueHub Capital that leads its NMTC program. “BlueHub has a long history of fighting hunger through targeted investments in food banks, grocery stores in low-income communities, schools that provide free meals to all students and food incubators. Kids’ Meals is another impactful organization we’re proud to support.”
In addition to addressing food insecurity, Kids’ Meals also provides resources including early childhood education, STEM education, family resource programs and case management, adult education and literacy, financial literacy, job training and workforce development, and community health.
“The New Markets Tax Credit program is an important resource that helps nonprofits grow and address many community issues,” said Courtney Nolan, New Markets Tax Credit relationship manager at Regions Bank. “Regions’ mission is to make life better, and through the New Markets Tax Credit program, we enhance our mission of service and help build inclusive prosperity for all. We are proud to be part of the team supporting Kids’ Meals, and we know it will make a real and meaningful difference in the lives of children and families across Houston for years to come.”
Classic Lake was engaged by Kids’ Meals in January 2023 to serve as its NMTC advisor. Classic Lake structured the transaction, raised the funds in support of the construction of the food distribution center and Kids' Meals operations, assisting Kids' Meals with navigating the process.
“Kids’ Meals commitment to providing food insecure children and families with emergency food relief, calibrated to meet caloric and nutritional needs is unparalleled. Their dedication to serving low-income families in communities of high poverty where residents lack access to local grocery or fresh food options will have lasting impacts on the community and these families for generations to come,” said Kyle Walton, Founder and President of Classic Lake.
Community Financing For An Inclusive Future
BlueHub’s NMTC program supports high-impact community development projects that benefit low income and underserved areas. Fueled by allocations of tax credits from the US Department of the Treasury, the program facilitates private investments and lowers the cost of capital for community and economic development projects that create quality jobs and long-term opportunities for low-income people and communities. BlueHub works with United Fund Advisors of Portland, Oregon, on its NMTC strategy and investments.
BlueHub Capital has received 10 allocations totaling $608 million from the US Department of the Treasury’s NMTC program. Previous allocations have been deployed in 20 states across the US, ranging from:
- Community facilities such as a healthcare center, social service organization, and schools in Connecticut, Tennessee, North Carolina, and Massachusetts,
- Food manufacturers in Tennessee and Georgia,
- Commercial real estate redevelopment projects in Texas, North Dakota, Virginia and Connecticut.
About BlueHub Capital
BlueHub Capital is a mission-driven, nonprofit community development finance organization focused on building healthy communities where low-income people live and work. BlueHub uses innovative financial tools to support projects that make communities more vibrant places to live through four distinct programs: BlueHub Loan Fund (community development financing), BlueHub SUN (foreclosure relief), BlueHub Energy (clean energy access) and One Percent for America (citizenship financing). Visit BlueHub Capital's website for more information about our impact.
About Kids’ Meals
In 2024, Kids’ Meals will deliver more than 2.7 million free, healthy meals to the homes of hungry preschool-aged children who face debilitating hunger due to extreme poverty. Since 2006, Kids’ Meals has delivered more than 14 million meals and connected families to vital wraparound resources to help end the cycle of poverty. Kids’ Meals is the only program of its kind in the nation delivering an average of 9,869 free, healthy meals every weekday to 56 Houston-area zip codes. Visit www.kidsmealsinc.org, or follow us on Facebook, Instagram and Twitter.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $155 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found on Regions website.