"Affordable housing in the Pacific Northwest is at a tipping point. With so many affordable units at risk due to expiring agreements, we need strong public and private partnerships to keep communities livable and affordable" says Robert Sheppard, founder and managing partner at Vital Housing. "Vital Housing was built on the belief that preserving affordability and reducing carbon emissions go hand in hand. We're proud to work with partners like NEF and Thurston County to find creative solutions that not only protect affordability but also make communities more sustainable for the long term."
Due to the 30-year Low-Income Housing Tax Credit (LIHTC) financing expiration, rent-restricted units were set to expire in 2026. Now, thanks to a $22.5 million preservation loan from NEF, Courtside Apartments will remain affordable for at least another twenty years, creating access for low-income families in Thurston County.
"Thurston Regional Housing Council approved funding for this project because preserving affordable rental housing is crucial in our community," says Alex Persse, Affordable Housing Program Manager for Thurston County Public Health and Social Services. "Creative solutions for preserving affordability through energy efficiency not only save money for tenants and reduce carbon emissions, but they can also help improve the physical conditions of their homes."
Earlier this year, NEF announced record-breaking 2024 results, which included nearly $900 million in structured finance investments for preservation lending and workforce housing. Now, the organization looks to deepen relationships with a new partner in Vital Housing, creating variety in its capital stack and focusing on environmental needs.
"At NEF we believe that preserving affordability is just as crucial as creating new homes," says Brandon McCall, vice president structured finance at National Equity Fund. "Courtside Apartments was the largest affordable property in Olympia that was at risk to be converted to market-rate units. We are always looking for innovative solutions to create and preserve affordable housing throughout the country, especially with partners who align with our mission and vision. Now, through thoughtful collaboration with our partners at Vital Housing and Thurston Regional Housing Council, we've been able to preserve affordability in a region that is desperately in need."
Vital Housing's initial scope for Courtside Apartments includes building efficiency improvements that will incorporate several measures: ductless mini-splits, rooftop solar, energy star appliances, air sealing, enhanced insulation and improved ventilation. These building enhancements are estimated to reduce site wide energy use by 51%, carbon emission by 328 metric tons annually and tenant's electric bills by $53 per month.
"Keeping housing affordable while cutting energy consumption just makes sense," says David Perloe, VP of Strategic Initiatives for Vital Housing. "Our approach maintains the stability of communities and ensures residents stay comfortable year-round without facing high utility bills."
Currently, Vital Housing is primarily focused on the Pacific Northwest. Within a few years, the organization hopes to bring its preservation and decarbonization model to select target markets across the United States with the intention of developing strategic partnerships along the way.
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.
About Vital Housing
Vital Housing is a mission-driven real estate investment firm committed to preserving and decarbonizing existing affordable housing. Focused on tackling the affordable housing crisis in the Pacific Northwest, the company plans to expand its impact to other regions in the future. Vital Housing specializes in acquiring mid-sized multifamily properties with expiring affordability restrictions, leveraging innovative financing solutions to ensure long-term affordability while implementing sustainable upgrades.
SOURCE National Equity Fund
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