NeighborWorks Capital and National Equity Fund Close on Inaugural LIHTC Equity Fund to Empower Non-Profit Organizations

The innovative fund, exclusive to members of the NeighborWorks America network, closed with $110.4 million in LIHTC equity, which will assist community-driven non-profits in addressing the nation's affordable housing crisis.

CHICAGO, Dec. 10, 2025 /PRNewswire/ -- NeighborWorks Capital, a national non-profit Community Development Financial Institution (CDFI), and National Equity Fund (NEF), a leading non-profit multi-family, affordable, real estate investment manager, announced the closing of its inaugural NeighborWorks Capital Equity Fund. Launched in April 2024, the first-of-its-kind equity fund raised $110.4 million to support 7 developments across the country, creating 517 units of affordable housing.

A History of Intentional, Impactful Collaboration

"Developing long-term partnerships is the key to NEF's success, and our extensive history with NeighborWorks organizations is a prime example of that commitment," said Matt Reilein, President and CEO of NEF. "We set out to intentionally and creatively help these community-driven organizations navigate LIHTC processes and resources with the simple goal of developing more affordable housing for families in need. We are proud to have closed the inaugural NeighborWorks Capital Equity Fund, which epitomizes the collective mission of NEF and NeighborWorks Capital to provide high impact capital to increase access to affordable housing in rural, suburban and urban markets across the country."

After more than 30 years of working with NeighborWorks organizations, NEF leadership saw an opportunity to collaborate with NeighborWorks Capital, a CDFI connecting NeighborWorks organizations with human, financial, and intellectual capital to expand economic opportunities in under-resourced communities across the country.

"Partnering with NEF brings together our deep understanding of the NeighborWorks network with NEF's decades of LIHTC expertise and unmatched infrastructure," said Jim Peffley, CEO of NeighborWorks Capital. "It is a natural partnership because our missions are tightly aligned. Both organizations are fully committed to supporting and empowering community-focused nonprofit developers. They have been an excellent partner in developing this new fund, and our model of collaboration is an example of the innovative thinking needed in times like these. Nonprofits should lean on each other's unique skill sets and infrastructure to grow our impact in new ways. NEF has demonstrated a vision for doing just that."

Empowering Community-Driven Non-Profits

The inaugural fund benefits a variety of high-performing community-based non-profit organizations within the NeighborWorks network by providing access to transparent, equitable LIHTC terms, consistent capital and alignment with NEF's mission.

"Each year, NeighborWorks organizations are the largest producers of affordable rental housing, by far. Last year, their production exceeded that of the top nine for-profit developers combined," said Peffley. "With the NeighborWorks Capital Equity Fund, these organizations now have access to equitable and transparent LIHTC terms that were once out of reach, empowering them to advance projects faster, more efficiently, and with long-term impact for the communities they serve. This is only the start of the capital advantage we want to build for these organizations. We want our next fund to reach even more organizations and communities. The residents they serve deserve every possible opportunity to create a better life."

In addition to the developments directly benefiting from this fund, another 19 projects representing more than 1,300 units were placed into other NEF funds that offered unique benefits to those developments. NEF and NeighborWorks Capital are committed to expanding the number of organizations that benefit from this partnership and extending geographic reach.

Investing in Brighter Futures

The fund was supported through equity investments from five collaborative investor partners, including: Capital One, First Citizens Bank, Northern Trust, Wells Fargo, and Wintrust.

"First Citizens Bank is proud to partner with National Equity Fund and NeighborWorks Capital on the launch of the NeighborWorks Capital Equity Fund," said Fiona Hsu, Head of Community Development Finance for First Citizens Bank. "We remain dedicated to investing in affordable housing as part of our ongoing commitment to build lasting financial security and long-term stability in the communities where we live and work."

Several investors noted the importance of working with organizations like NEF and those within the NeighborWorks America network that share in a mission-oriented approach to deploying socially impactful capital solutions.

"Investing in this fund aligns with our belief that community development is strongest when capital and mission work together," said Eduardo Aldana, Vice President at Wintrust Community Development. "We're pleased to help expand equitable LIHTC resources that accelerate projects, strengthen non-profit developers, and increase affordable housing where it's needed most."

"We applaud NeighborWorks Capital and National Equity Fund — two mission-driven organizations and long-time Capital One partners — for launching the inaugural NeighborWorks Capital Equity Fund," said Desiree Francis, Head of Community Finance at Capital One. "By expanding access to capital for national and community-based nonprofit developers, this fund will help preserve and create more stable, affordable homes — ensuring families across the country have the foundation they need to thrive."

Looking Forward

For NEF and NeighborWorks Capital, the strong commitment from investors emphasized the need to prioritize true community-driven nonprofit developers that advance residents' priorities, allowing a more equitable playing field for all. The two organizations also acknowledge the need for a continuation of the fund to sustain such capital advantages and to create and preserve more affordable housing across the country.

"As a pioneering real estate investment manager and LIHTC syndicator, National Equity Fund has a responsibility to lead and advocate for innovative approaches to solve long-standing imbalances in the marketplace," said Liz Hibbard, Senior Vice President, Capital Markets at NEF. "The inaugural fund not only served this purpose, but it helped enable community-based non-profits that are often overlooked, under-banked and under-served. As we move forward, our hope is to continue leveling the playing field through additional funds that will ultimately create a society where increased access to affordable housing empowers every individual and family to reach their full potential."

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 NeighborWorks Capital
For more than 25 years, NeighborWorks Capital - a national non-profit, certified Community Development Financial Institution (CDFI) - has served the NeighborWorks America network of nearly 250 strong, capable non-profit housing and community development organizations in every state, the District of Columbia, and Puerto Rico. NeighborWorks Capital supports affordable housing development, economic development, neighborhood revitalization, and community services across the country.

S&P Global Ratings has assigned NeighborWorks Capital an issuer credit rating of "A+/Positive," citing strong capital adequacy, profitability, liquidity, and financial management. NeighborWorks Capital has been Aeris-rated since 2011 and currently holds a four-star Impact Management rating as well as an AA Financial Strength and Performance Rating, indicating robust financial capability and risk management. NeighborWorks Capital is also a member of the Federal Home Loan Bank of Atlanta, gaining access to competitively priced financing and affordable housing and community development grants.

For more information, visit: https://www.neighborworkscapital.org.

SOURCE National Equity Fund