Enterprise Community Partners has announced the closing of its largest low-income housing tax credit (LIHTC) fund at $341 million.
Enterprise Housing Partners Fund XXXVIII (EHP 38) will help create and preserve 2,997 affordable homes across 30 properties in 15 states.
The fund, which secured commitments from 14 investors, is the first of four multi-investor LIHTC funds planned by Enterprise 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. Thanks to our many committed partners, we can direct these resources to fill critical gaps in our nation’s housing supply.”
EHP 38 funds properties in 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.
Two properties that characterize the fund’s diverse array of investments are Tigard Senior Housing, a new development featuring 57 apartments for seniors in Tigard, Oregon, and Bancroft Dixwell Apartments, a 78-apartment renovation in Boston.
Tigard Senior Housing will provide 57 one-bedroom apartments to Oregon seniors earning between 30% and 60% of the area median income (AMI). Eight apartments will be set aside for formerly homeless individuals, including five for formerly homeless veterans. The development is adjacent to the senior center and located near public transit and the library, and the developer, Northwest Housing Alternatives, will work with partners to provide Meals on Wheels and catered services to the community. Construction is expected to be completed by August 2023.
In Boston, eight apartment buildings on the border of the Jamaica Plain and Roxbury neighborhoods will be rehabilitated as part of the Bancroft Dixwell Apartments renovation. These are two of the most racially diverse neighborhoods in the city, and rents are rising rapidly, making affordable housing preservation a critical need. The buildings contain 23 two-bedroom, 53 three-bedroom, and two four-bedroom apartments. Eight homes will be restricted to 30% of the AMI, 67 will be restricted to 60% of the AMI, and three will have no income restrictions to allow for existing over-income tenants to remain housed.
The rehabilitation process will provide substantial improvements to the buildings, including new kitchens, baths, water heaters, and windows. Urban Edge Housing is the project’s developer, and the rehabilitation is expected to be completed by October 2023.