Union Gospel Mission receives $1.81 million dollars in funding for new LifeChange building through New Market Tax Credits
Mission nearing fundraising goal for the new building 

PORTLAND, OR – July 22, 2005 – Union Gospel Mission has received $1.81 million dollars in funding through the use of New Market Tax Credits (NMTCs) to help fund the Mission’s new LifeChange building located in Old Town, on the corner of N.W. Third Ave. and Burnside St. The Portland Development Commission approved up to $7 million in New Markets Tax Credits (NMTCs) to be allocated by the Portland New Markets Fund I, LLC for use in the project, which will generate approximately $1.81 million in equity toward the design and construction of the new 28,500-square-foot LifeChange building. US Bank Community Development Corporation is the tax credit investor on the project; Portland Family of Funds provided tax credit consulting and fund management services on the NMTCs transaction, including structuring the transaction, locating equity and debt, coordinating the funding, and managing the tax credit compliance.

“The excitement is building as we near our fundraising goals. We are grateful for the assistance from the Portland Development Commission and our many other donors in getting us to this point. We still need to raise about $130,000 dollars of the anticipated total project cost of $6.4 million,” said Bill Russell, Union Gospel Mission’s Executive Director. “The donations to date have helped tremendously and we hope to continue this momentum to raise the remaining funds needed.”

The new LifeChange building will more than double the number of residents in Union Gospel Mission’s LifeChange addiction recovery program from 30 to 75 men and women. The new facility will also house classrooms, other educational resources, and Union Gospel Mission’s administrative offices; and it will expand the dining facilities for meals served to the homeless and needy. The new facility will be integrated with the existing Mission building at 15 NW Third Ave., a building the Mission has occupied since the 1930s. The new facility represents the largest expansion in the Mission’s 78-year history.

Union Gospel Mission offers long-term and innovative recovery for people considered “hard-core” addicts. Most residents in the recovery program have been methamphetamine users. Union Gospel Mission also provides three meals every weekday for the homeless and needy, as well as providing clothing and referral to essential services. In 2004, Union Gospel Mission served 104,986 meals.

A major ground breaking event is planned for the new LifeChange facility and will coincide with the start of construction toward the end of this summer. The building is expected to be completed in the summer of 2006.

About Union Gospel Mission: Union Gospel Mission has been “feeding the hungry and restoring the addict” since 1927. Union Gospel Mission provides meals for the homeless and needy and operates LifeChange, a long-term addiction recovery community. In LifeChange, residents live and work at Union Gospel Mission for four years and learn to overcome addiction and build new lives. For more information about Union Gospel Mission and LifeChange contact 503-274-4483, or visit online at www.ugmportland.org.

About Portland New Market Fund I, LLC: The Portland New Markets Fund was created as a private Community Development Entity to apply for and deploy New Markets Tax Credits. PNMF received a $100 million allocation in 2004. PDC is the Controlling Entity; Portland Family of Funds is the Managing Member.

About Portland Development Commission: Portland Development Commission is the urban renewal, housing and economic development agency for the City of Portland. Created by Portland voters in 1958, PDC has played a major role in keeping Portland one of America’s most livable cities. During the past 40+ years, PDC has taken forward 20 urban renewal plans that have helped change the face of the city- making it a better place to live for all Portlanders.

About Portland Family of Funds: Portland Family of Funds is a private financial consultant and fund manager based in Portland, Oregon, whose mission is “To create opportunities for profitable investments which enhance social and environmental yields.”

About US Bank Community Development Corporation: U.S. Bancorp's Community Development Corporation, with assets of nearly $1.4 billion, is one of the largest new market tax credit investors in the country. Its mission is to seek out and invest in catalytic community investments throughout the United States. It is a subsidiary of U.S. Bancorp (NYSE: USB); with assets of $204 billion, it is the 6th largest financial services holding company in the United States.