Fannie Mae Multifamily Has Completed $1.5 Billion of Low-Income Housing Tax Credit Investments Since 2018
Milestone Reflects Commitment to Underserved Markets in all Market Cycles
19 Jan, 2021, 12:30 ET
WASHINGTON, Jan. 19, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) announced today that since its return to the Low-Income Housing Tax Credit equity (LIHTC) market in 2018, it has provided $1.5 billion of equity investments to support the creation and preservation of 576 affordable properties. Fannie Mae's investments in 46 states and the District of Columbia are part of an ongoing commitment to affordable rental housing in underserved markets.
Fannie Mae investments have enabled the preservation and production of LIHTC properties with a focus on underserved populations (Native American and farmworker communities), underserved markets, supportive housing developments, and disaster impacted areas.
"Our LIHTC investments provide a reliable source of capital and serve as a stabilizing influence on affordable housing throughout a wide range of economic cycles," said Michele M. Evans, Executive Vice President and Head of Multifamily, Fannie Mae. "These investments are part of our larger effort to increase and improve the affordable housing supply and help underserved markets."
"Housing is inextricably linked to the broader community, and our LIHTC investments ensure there is financing for properties that offer services, help homeless households, and bolster affordable housing in high-needs rural areas," said Dana Brown, Vice President, Multifamily, Fannie Mae. "We want to acknowledge FHFA and our partners in the LIHTC market for their help in supporting our efforts to create more stable and vibrant communities. We look forward to continuing to support these overlooked communities."
Fannie Mae's equity investments involve working with our LIHTC syndicator partners, developers, and housing experts to help preserve and increase the supply of affordable housing. Of the 576 LIHTC properties benefitting from Fannie Mae's equity investments, 177 are in rural communities in 38 states and 41 serve high-needs rural regions and populations, including Native American communities.
Some notable Fannie Mae LIHTC equity investments through December 31, 2020 include:
- Fannie Mae partnered with Boston Capital to invest $50 million in the Disaster Area Housing Recovery Fund I. This fund supports properties located in areas that the President of the United States has declared to have experienced a major disaster or emergency and, thus, are entitled to disaster relief support through the Federal Emergency Management Agency (FEMA) and other agencies.
- In 2020 alone, Fannie Mae committed to invest with six syndicator members of the National Association of State and Local Equity Funds (NASLEF), a professional, nonprofit association that promotes efficient management of state and local equity funds. The six NASLEF syndicators are: CAHEC, Cinnaire, Evernorth, Midwest Housing Equity Group, Ohio Capital Corporation for Housing, and VCDC. Fannie Mae committed to invest more than $110 million combined in their LIHTC funds.
- Mino-bimaadiziwin Apartments (Minneapolis, MN) will provide 110-units of affordable housing. Developed by the Red Lake Band of Chippewa Indians, it will serve residents earning 30%, 50%, and 60% of AMI with 24 units set aside as permanent housing for the chronically homeless. Fannie Mae invested in this project through the Raymond James Affordable Housing Fund 12.
- Valle Verde (Hatch, NM) will provide for the substantial rehabilitation of 36 units in this high-needs rural farmworker community, ensuring long-term affordability. Fannie Mae invested in this project through the Richman USA Institutional Tax Credit Fund 126.
- Serenita Apartments (Brawley, CA) will provide 60 newly constructed units in the Imperial Valley of California for residents earning between 30% and 55% AMI in a high-needs, largely farmworker rural community. Fannie Mae invested in this project through the Richman USA Institutional Tax Credit Fund 126.
- Lac Courte Oreilles Homes V (Hayward, WI) will provide a $9.5 million renovation of Lac Courte Oreilles Homes V in Hayward, WI. This property will offer 36 units in a rural community that serves Native American residents and includes supportive services for veterans through the Lac Courte Oreilles Tribal Veterans Services Office. Fannie Mae invested in this project through the Raymond James Affordable Housing Fund 12.
- Arlington Youth Place (Tacoma, WA) will provide 58 units of housing located on a 2.7-acre site in Tacoma with supportive services and job training. Forty-four units will be set aside for homeless youth and young adults aged 18 to 24, and other at-risk residents, and will include a crisis residential center for homeless youth. Fannie Mae invested in this project through the Boston Capital Affordable Housing Fund 4.
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