EHCI Closes $200M Multi-Investor Equity Fund

Agrihood. Image courtesy of Enterprise Housing Credit Investments

Enterprise Housing Credit Investments has closed Enterprise Housing Partners Fund XXXIV (EHP 34), a nearly $200 million multi-investor Low-Income Housing Tax Credit fund that will create nearly 1,800 affordable homes in 10 states.

EHCI said EHP 34 is the first of four multi-investor funds planned this year with two expected to close in the first half of the year and the final two later in the year. The national nonprofit noted EHP 34 closed on Feb. 12, marking the earliest in the year EHCI has closed a multi-investor fund. EHP 34 has seven investors, including major national and regional banks, most of which are repeat investors with EHCI.

Scott Hoekman, president of EHCI, Enterprise’s Housing Credit syndication business, said in a prepared statement Enterprise continues to see strong interest from longtime and new investors in its housing credit funds.

The fund will support the creation of 1,794 affordable homes across 14 properties in 10 states. The properties are located in California, Connecticut, Florida, Maryland, Massachusetts, New Mexico, New York, Oregon, Texas and Washington. Four of the properties have units set aside for special needs populations, physical and/or developmental disabilities, mental illness or homelessness. Eight of the properties serve senior populations.

Two projects set to deliver by spring 2023 are among the developments receiving fund investments. The Montage is a 216-unit apartment community for families in San Antonio, Texas, that is being developed by a partnership of Kittle Property Group and the Housing Authority of Bexar County. It will have five three-story buildings with 60 one-bedroom apartments, 96 two-bedroom apartments and 60 three-bedroom apartments. The property will serve local residents at or below 60 percent area median income (AMI) and will have rents that are steeply discounted for the market. The EHP 34 fund invested $14 million in The Montage.

One of the properties serving people aged 55 and up is Agrihood, a 163-unit senior affordable development with a focus on sustainable agriculture in Santa Clara, Calif., that received a $40 million investment from EHP 34. The Core Cos. is developing the property in partnership with the Central Valley Coalition for Affordable Housing. Eighteen apartments will be set aside and accessible for people with mobility impairments; eight for people with hearing and/or visual impairments; and 54 for formerly homeless individuals. Supportive services will be provided to all tenants. Agrihood is part of a larger master development of mixed-income rental housing and homeownership units that will include farming plots, a small orchard, community building with café and a plaza where a farmers’ market will be hosted.

Earlier EHCI Investments

Last week, EHCI provided $18 million in Low-Income Housing Tax Credits to repurpose a 10-story office building in Denver’s Civic Central neighborhood into a 110-unit affordable housing project. A partnership between Denver Health & Hospital Authority and Denver Housing Authority are developing the project.

In November, Enterprise Community Development completed the $30 million second phase of the Jackson Ward revitalization project in Richmond, Va., which includes two communities with 154 apartments and 6,000 square feet of retail. EHCI and Truist Bank provided Low-Income Housing Tax Credits along with six government agencies. The three-phase project is being developed in partnership with Richmond Redevelopment Housing Authority.