WOODLAND HILLS, Calif., March 20, 2019 /PRNewswire/ -- Alliant Strategic Investments ("ASI") announced that construction is underway on one of the first affordable housing properties in the nation to utilize the recent Opportunity Zone legislation alongside the low-income housing tax credit (LIHTC). Parramore Oaks, an affordable housing development located in Orlando, FL, is being developed by INVICTUS Development (an Alliant Joint Venture) and SunTrust Bank.
Alliant created ASI in 2014 to focus on creating and preserving affordable workforce housing. The company believes that the legislation will enable new capital to flow into workforce housing developments in growth-oriented opportunity zones. "This is right in our wheelhouse. Alliant has been investing in and developing affordable housing properties in these Opportunity Zones for over 20 years," said Clayton Wyatt, Alliant's Chief Capital Officer. "This is just another arrow in the quiver of our developer partners who may have passed up on great workforce housing projects that don't pencil as LIHTC deals." As a proven fund manager with over $7 billion in equity, Alliant is poised to be one of the leaders in Opportunity Zone space.
Groundbreaking for Parramore Oaks took place in August 2018 after several years planning with the city of Orlando and the Downtown Orlando Community Redevelopment Area. The first phase, which is funded by SunTrust, will consist of 120 units: 96 affordable housing and 24 market-rate units. The ninety-six affordable housing units will be available for families or individuals that earn no more than 50% - 60% of the area median income. 5% of the affordable housing units will be reserved for people who are transitioning out of homelessness.
Parramore, FL has its historic roots as a thriving African-American community. After years of blight, Orlando Mayor, Buddy Dyer, made a commitment to bring quality and affordable housing back into Parramore. "SunTrust is committed to financing affordable housing and was proud to partner with INVICTUS and Alliant to help revitalize the Parramore community. Forty-four percent of households in Orlando spend thirty percent or more of their income on housing. That's not a sustainable path for working families or Orlando. Importantly, this development provides a range of housing options and will be an important addition to our community," stated Sandy Hostetter, Central Florida Market President for SunTrust.
As part of the Tax Cuts and Jobs Act passed in 2017, Congress established a new community development program, Opportunity Zones, to incentivize long-term, growth-oriented investments in low-income census tracts. According to the Coalition at Economic Innovation Group (EIG), "The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory." EIG was instrumental in getting Opportunity Zone legislation passed. Alliant Strategic is a member of EIG's Opportunity Zones Coalition.
ASI is an owner and operator of affordable and workforce housing across the U.S. The firm sponsors a variety of residential real estate equity funds focused on economically distressed communities. ASI currently has a pipeline of residential projects in Opportunity Zones, requiring over $100 million of equity.
Alliant Strategic Investments
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SOURCE Alliant Strategic Investments