WNC has closed WNC Institutional Tax Credit Fund 10 California Series 16, L.P. (CA 16), a $94.2 million institutional low-income housing tax credit (LIHTC) fund, which will be used to rehab six affordable housing properties throughout California.
“This California Preservation Fund is a crucial process to maintain the existing supply of homes,” Michael Gaber, WNC’s executive vice president & chief operating officer, told MHN. “This is especially important in California, where the demand for affordable housing is constantly greater than what’s obtainable.”
Supply and Demand
The properties impacted by the fund are located within the cities of Antelope, Los Angeles, National City, Sacramento and San Marcos, and total 972 affordable housing units for families. Because many areas within California also continue to experience rising rents and decreasing vacancies, this leaves few options to families who cannot afford these increasing costs.
“By renovating affordable housing communities, not only is the existing stock protected and families are not displaced, but also, residents are provided a modernized place that they deserve to call home,” Gaber said. “WNC was founded in 1971 and affordable housing has been our primary focus since our inception. We believe deeply in our mission that everyone deserves to have decent, safe, affordable housing to call home.”
CA 16 consists of eight Community Reinvestment Act-qualified institutional investors, five of which have invested with WNC before. Since 1971, WNC has acquired more than $8.3 billion of assets totaling in excess of 1,300 properties in 47 states, Washington D.C., and the U.S. Virgin Islands.
“Losing these affordable housing units to market rate units would exacerbate the housing problems within these communities,” noted Gaber. “Not only are these communities in high demand, they are also some of the more expensive communities in the country on average. Maintaining rents at below 60 percent of the median income is the only way the current residents could afford to live in these communities.”
Image courtesy of WNC