Cinnaire Closes $176M LIHTC Fund

3 min read

The vehicle will provide financing for development of affordable homes in five states.

Charts courtesy of Cinnaire

Cinnaire has closed its largest multi-investor equity fund since 2016, a $175.7 million Low Income Housing Tax Credit fund that will finance the development or preservation of 1,648 affordable homes and 2,441 bedrooms in five states.

Cinnaire, a Lansing, Mich.,-based non-profit financial partner that supports affordable housing developments and community projects, also said Cinnaire Fund for Housing Limited Partnership 36 (Cinnaire F36) was the second-largest multi-fund investor fund since the firm was founded in 1993.

Nine investors participated in the fund that was raised by Cinnaire’s new team that is leading business funding and equity raising, Vicki Mincey, Matt Hodges and Pam Hetz. Brett Oumedian, Cinnaire Chief Financial Officer, said in prepared remarks that the response from investors and 90 percent repeat developers will allow Cinnaire to continue to support and enhance communities and improve the quality of life for many people.

READ ALSO: LIHTC Has Outsized Role in Poverty-Stricken Rural Areas

Cinnaire F36 will support 20 properties in Illinois, Indiana, Michigan, Minnesota and Wisconsin. Twenty percent of the projects will be for residents with special needs, including Prominence Commons in Portage, Ind. Prominence Commons provides permanent supportive housing for chronically homeless individuals and their families that have a household member with a disabling condition. The fund will also include three Rental Assistance Demonstration (RAD) properties. The locations were not disclosed.

Mark McDaniel, Cinnaire president & CEO, said in a prepared statement the fund should positively impact hundreds of families and provide affordable housing to seniors, families and those with special needs.

Michigan will receive the most units through the fund, or 83.2 percent. Wisconsin’s share of the units will be 40.6 percent followed by Indiana with 19.8 percent, Minnesota with 15.3 percent and Illinois with 10.1 percent. Most of the funding—slightly more than $70 million—will provide multifamily units, and nearly $55 million will go toward senior housing units. The remainder of the funding will provide multifamily and special needs populations with homes.

The fund brings Cinnaire’s total equity raised since inception to $3.7 billion. Since 1993, the firm has invested $4.9 billion to support the development of 863 housing communities in 10 states. The firm provided 53,146 affordable apartments for more than 114,000 individuals and families. Cinnaire has provided community development loans for more than 4.7 million square feet of commercial, mixed-use and community space.

Other Deals

In early August, Cinnaire closed its 2021 Mid-Atlantic Low Income Housing Tax Credit Fund, a $52 million fund that will bring more than 570 units of affordable housing to communities in Delaware, Maryland, New Jersey and Pennsylvania. Seven financial institutions invested in the fund. Cinnaire has partnered with insurance companies and financial institutions throughout the Mid-Atlantic to raise more than $352 million and create or preserve more than 4,200 units of affordable housing.   

In February, Cinnaire provided $6 million in 4 percent LIHTC credits to JT Klein Co. to develop Limestone Ridge Apartments, a 116-unit affordable housing project in Fitchburg, Wis. The LIHTC credits were part of the financing the developer received for the project set to deliver in 2022. KeyBank also provided a $29.4 million financing package that included a $16 million construction loan from Keybank Community Development Lending and Investment and a $13.3 million, fixed-rate forward tax-exempt loan that KeyBank’s Commercial Mortgage Group secured from Freddie Mac.

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