Commercial and Multifamily Briefs June 30, 2022
Enterprise Closes $341.5 Million Low-Income Housing Tax Credit Fund
Enterprise Community Partners closed its Enterprise Housing Partners Fund XXXVIII (EHP 38), a $341.5 million Low-Income Housing Tax Credit fund.
With commitments from 14 investors, the fund will help create and preserve 2,997 affordable homes across 30 properties in 15 states. EHP 38 represents the largest fund ever closed by Enterprise and is the first of four multi-investor Low-Income Housing Tax Credit funds planned for 2022.
“As rents and the cost of living continue to rise nationwide, impact investors want to be part of the solution,” said Scott Hoekman, president of Enterprise’s housing credit investments business. “The Low-Income Housing Tax Credit is our most powerful tool for building and preserving affordable housing.”
EHP 38 funds 30 affordable housing properties spread across Alabama, California, Colorado, Georgia, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania and Texas. The fund will also create nearly 5,000 new jobs and bring an estimated $746 million in wages, business income and tax revenue to the surrounding communities. The fund’s 14 investors include national and regional banks as well as an insurance company.
TruAmerica Multifamily Launches Build-For-Rent Development Division
TruAmerica Multifamily launched a build-for-rent development division to build townhome and single-family rental communities in suburban submarkets.
The initial roll-out of TruAmerica’s in-house BFR platform will be in high-growth Southwest, Southeast and Texas suburban markets, which represents about 60% of the firm’s $16.1 billion multifamily portfolio.
“The changing demographics of the U.S., the ongoing affordability-challenges and credit qualification standards of homebuying for Americans has led to a steep decline in home ownership rates, but the desire to live in a home remains high,” said chief executive officer and founder Robert Hart. “BFR is a natural extension of our workforce housing platform because it complements the same demographics that make up our Class-B multifamily strategy. It provides yet another housing option for working-class Americans who can’t afford to own a home or would just prefer to rent.”
TruAmerica will focus on communities with townhomes ranging in size from 1,200 to 1,500 square feet and single-family homes between 1,800 to 2,200 square feet with rents affordable to working class American families.
