National Equity Fund (NEF) Collaborates with Community HousingWorks on Preservation of 126 Units of Unrestricted Housing

The two capital partners share a history that spans more than twenty LIHTC transactions and
are now entering the preservation equity space.

CHICAGO, June 5, 2025 /PRNewswire/ -- National Equity Fund (NEF), a leading non-profit multi-family, affordable, real estate investment manager, announced the closing of the NOVO Apartments in the Eastern Los Angeles County community of Rowland Heights. Working closely with long-time partner Community HousingWorks and the California Housing Finance Agency (CalHFA), the preservation equity deal will help maintain 126 units of affordable housing for a minimum of ten years.

Currently, the NOVO Apartments are market rate but had dealt with low occupancy over the years. Through a bidding process against market rate buyers, Community HousingWorks was able to acquire the apartments, which will allow residents to stay in their homes, no longer fearing displacement due to potential rising rents. Now, all units within the apartment complex are targeted for households at or below 80 percent of the Area Median Income (AMI).

"Community HousingWorks values its deep partnership and mission alignment with National Equity Fund and the California Housing Finance Agency," said Kevin Leichner, Senior Vice President of Housing and Real Estate Development at Community HousingWorks. "CHW and NEF have worked together since 1992 to add operating communities to CHW's portfolio for long-term stewardship. NOVO apartments offered the opportunity to go beyond preservation of existing Naturally Occurring Affordable Housing by adding a commitment to deeper affordability levels with ten percent of the apartments reserved for residents at fifty percent AMI. CHW and NEF's underwriting teams engaged strongly throughout the process to make this impactful outcome possible. Being able to launch CalHFA's preservation program with NOVO reinforces the importance of this crucial affordable housing strategy to keep Californians in their homes."

Over the years, Community HousingWorks and National Equity Fund have collaborated on more than twenty deals using Low-Income Housing Tax Credits (LIHTCs) and three deals in which NEF provided preservation debt. This is the first transaction between the organizations utilizing preservation equity as the primary investment, of which NEF provided more than $16 million in investments.

While NEF has been a pioneer in Low-Income Housing Tax Credit (LIHTC) syndication, in recent years, the non-profit has expanded its capital solutions to meet the evolving needs of the affordable housing crisis, developing deep expertise through its structured finance practice. As a result, the structured finance team helped the organization reach a record-breaking year in 2024, with the recent announcement of the preservation and rehabilitation of 211 affordable units in the Pacific Northwest only adding to the team's success.

"NEF's evolution as a leading multi-family, affordable, real estate investment manager is rooted in our goal to tackle the affordable housing ecosystem from a variety of lenses," said Brandon McCall, vice president structured finance at National Equity Fund. "The closing of the NOVO Apartments as our first preservation equity deal with Community HousingWorks speaks to our intentionality and stability as a capital partner that works diligently to develop deep relationships with partners and address any challenges or issues across the affordable housing space."

Additionally, this is the first preservation transaction of this kind for CalHFA, California's affordable housing lender that collaborates with developers, local, state and federal government partners as well as preferred lender networks to support the needs of low-and moderate-income renters and homebuyers.

"CalHFA recognizes the vital importance of preserving our affordable housing stock and has been exploring ways to contribute to a statewide effort," said CalHFA Chief Deputy Director Rebecca Franklin. "This creative approach was made possible by the partnership with experienced organizations like NEF and CHW."

The two-story NOVO Apartments consists of 19 one-bedroom units and 107 two-bedrooms and bring forth a suite of amenities for residents including a cabana, pool, fitness center, outdoor picnic area and a courtyard. Additionally, the development is transit-oriented with access to multiple shopping centers and regional parks.

About National Equity Fund, Inc. (NEF)

NEF is a proven non-profit real estate investment manager for multi-family affordable housing with a mission to create and deliver innovative, collaborative financial solutions to expand the creation and preservation of affordable housing. Through its Low-Income Housing Tax Credit (LIHTC) syndication platform and its lending and investing platforms, NEF generates opportunities rooted in its vision that increased access to affordable housing empowers every individual and family to reach their full potential.

Beyond LIHTC, NEF offers additional financial solutions to help close the affordable housing gap in multiple ways that are mission-aligned. Deep expertise in pre-development, preservation, and workforce lending further assists partners to expand their efforts to provide low-income and middle-income affordable housing. NEF promises responsive capital solutions, leveraging its comprehensive infrastructure and extensive experience to create meaningful social impact and positive financial returns.

Since being founded in 1987, NEF has invested over $27.2 billion, representing nearly 260,000 new or preserved affordable homes for individuals, families, and communities in need across the country. NEF is Chicago-based and has donated more than $260 million in grants to support its affiliate LISC's nationwide community development work. To learn more about NEF's impact, innovative financial solutions, and opportunities, visit www.nefinc.org.

SOURCE National Equity Fund