Three New LIHTC Funds Will Focus on Underserved Markets in Rural Areas
WASHINGTON, Nov. 8, 2018 /PRNewswire/ — Fannie Mae (OTC Bulletin Board: FNMA) announced today it has committed to invest up to $145 million in three low-income housing tax credit (LIHTC) funds as part of its ongoing commitment to provide a reliable source of capital for affordable rental housing in underserved markets. The new funds are Cinnaire Fund for Housing LP 33, Ohio Equity Fund for Housing LP XXVII, and MHEG Fund 50 LP.
The Federal Housing Finance Agency (FHFA) approved Fannie Mae’s re-entry into the LIHTC market as an equity investor in November 2017. Fannie Mae’s return to the LIHTC market expands the company’s efforts to increase and improve affordable housing stock and help those markets most in need of support.
“Fannie Mae plays an increasingly important role in supporting underserved markets in rural America,” said Dana Brown, Vice President, LIHTC Investments, Fannie Mae. “These funds will allow us to channel much needed capital to support neighborhoods that need it most.”
“It is good to have Fannie Mae back as a low-income housing tax credit investor,” said Bill Shanahan, President of The National Association of State and Local Equity Funds (NASLEF) and President of Northern New England Housing Investment Fund. “Working with our nonprofit NASLEF members, Fannie Mae is helping bring much needed capital to the rural, underserved markets. It can be a challenge to attract capital to these markets.”
The three funds with investments from Fannie Mae announced today are members of NASLEF. NASLEF is a professional, nonprofit association that promotes efficient management of state and local equity funds.
Cinnaire Fund for Housing
Fannie Mae committed to invest up to $35 million in the Cinnaire Fund for Housing LP 33 with Cinnaire Corporation. The fund manages a total of $150.8 million and will invest in partnerships that own LIHTC properties located in Illinois, Indiana, Michigan, Minnesota, and Wisconsin. Thirty-seven percent of the Cinnaire Fund portfolio supports affordable housing in rural markets.
Ohio Equity Fund for Housing
Fannie Mae committed to invest up to $50 million in Ohio Equity Fund for Housing LP XXVII with Ohio Capital Corp. The total amount of the fund will be $250 million to $275 million. Ohio Equity Fund will invest in LIHTC housing projects in Ohio, Indiana, Michigan, Kentucky, Pennsylvania, Tennessee, and West Virginia. Thirty-four percent of the fund’s investments support affordable housing in rural markets.
Fannie Mae committed to invest up to $60 million in MHEG Fund 50 LP with Midwest Housing Equity Group. The fund manages a total of $182 million and will invest in partnerships that own 41 LIHTC properties in Nebraska, Iowa, Missouri, Kansas, Colorado, Oklahoma, and Texas. Sixty-eight percent of the fund’s current projects in its portfolio support affordable housing in rural markets.
For more information about Fannie Mae’s Low-Income Housing Tax Credit program, visit our LIHTC program website.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.
SOURCE Fannie Mae