Project Addresses
330 Buccaneer Street
Hamilton, AL 35570
455 Highway 33
Double Springs, AL 35553
Project Name
- Hamilton Homebuilders
- Hamilton, Alabama & Double Springs, Alabama
Amount of NMTC Allocation
- $8 Million
Community Profile (Marion County)
- Hamilton is the county seat of Marion County in northwest Alabama.
- Population: 29,833
- Poverty Rate: 17.6%
- Unemployment Rate: 3.0%
- Household Median Income: $35,700
Community Profile (Winston County)
- Double Springs is located in Winston County in north central Alabama.
- Population: 23,722
- Poverty Rate: 18.7%
- Unemployment Rate: 3.0%
- Household Median Income: $35,360
Community Impact
- The funds will be used to renovate, update and reopen Hamilton Homebuilder’s manufacturing facilities in Hamilton and Double Springs. The project is expected to generate more than 275 jobs.
- Traditional financing to update and reopen the two facilities was not an option due to the rural location and nature of the equipment. Without the NMTC funds, Hamilton Homebuilders would not have been able to make the necessary updates required to resume production at either location.
Project Highlights
- The two manufacturing locations were built in the 1970s and have been closed for five years as the owner determined whether the facilities would be updated.
- Updating and refurbishing the Hamilton facility, which is 211,000 square feet, will be $3.7 million. The Double Springs facility, which is 158,300 square feet will cost $4.1 million to bring up to modern production standards.
- At both facilities, investments will be made in technology and infrastructure, which includes sprinklers, plumbing, sewage and ventilation.
Hamilton Homebuilders, a UB Community Development (UBCD) New Markets Tax Credit Success Story
UB Community Development, LLC (UBCD), a community development partner of United Bank, has provided $8 million in New Markets Tax Credit (NMTC) funding for Hamilton Homebuilders to update and reopen manufacturing facilities in Hamilton and Double Springs, Alabama.
Hamilton Homebuilders is a leading manufactured home builder committed to building homes with quality craftsmanship and modern comfort. The NMTC funding will be used to update, refurbish, and reopen two manufacturing locations.
The facility in Hamilton, AL was originally constructed in the early 1970s and was closed for over five years while the owner determined if it would be feasible to refurbish and reopen the facility in a manner to support its operations.
The NMTC funding will allow Hamilton Homebuilders to make the necessary investments in the facility to meet modern production requirements. Given the rural location and specialty nature of the equipment, traditional financing was not a viable option to complete the scope of the project. Without the NMTC funds, the company would have been unable to make the necessary investments in technology and infrastructure (sprinklers, ventilation, plumbing, and sewage) to bring the facility to an optimal working capacity.
The square footage of the Hamilton facility is 211,000 and the cost for updating and refurbishing will be $3.7 million. The Double Springs facility measures 158,300 square feet and the total cost of that project will be $4.1 million. Once the facilities are up and running, general production will require approximately 250 full-time employees. Three maintenance jobs, 10 production managers, eight administration managers, and six administrative positions will also be filled.
About UB Community Development
UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more.
Since 2016, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded United Bancorporation of Alabama (OTC: UBAB), the parent corporation of United Bank and UBCD, $120 million in New Markets Tax Credit allocations. UBA, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a NMTC allocation from Treasury in the last decade. This success was made possible largely because of United Bank’s designation as a Community Development Financial Institution (CDFI) and the organization’s unwavering commitment to its CDFI mission to bring positive and sustainable economic and quality-of-life improvements to underserved communities, not only in its traditional banking footprint, but throughout the entire states of Alabama and Florida.
Additionally, UBCD, as the community development management entity for UBA, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and non-profits in rural areas. Finally, UBCD also manages the $4 million Capital Magnet Fund Award that Treasury recently provided to United Bank. The CMF award requires UBCD, in conjunction with United Bank, to inject at least $40 million in capital to facilitate accessible, affordable and quality housing communities. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to receive and administer these programs.
Download the success story here.
