Enterprise Community Partners has closed its largest Low-Income Housing Tax Credit fund to date. At $341.5 million, Enterprise Housing Partners Fund XXXVIII (EHP 38) includes 14 investors and plans to invest in the creation and preservation of 2,997 affordable units across 15 states. The fund’s commitments come from national and regional banks and an insurance company.
EHP 38 has formal agreements with investors and developers to invest in 30 affordable housing properties across 15 states: Alabama, California, Colorado, Georgia, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania and Texas.
The properties represent a range of affordable housing types. For example, the portfolio will include Tigard Senior Housing, a new 57-unit property in Tigard, Ore., and Bancroft Dixwell Apartments, a 78-unit renovation in Boston.
By the company’s estimates, EHP 38 will also create nearly 5,000 jobs and $746 million in economic activity to the areas surroundings the communities it is investing in.
Demand for LIHTC
This is Enterprise Community Partners’ first LIHTC fund closing this year but not its last. Enterprise Housing Credit Investments, the company’s affiliate that manages its housing credit investment business, is planning to close three more tax credit funds this year. In 2021, Enterprise closed four LIHTC funds totaling $801 million.
“The Low-Income Housing Tax Credit is the most effective tool we have to create and preserve affordable housing across the country,” Scott Hoekman, president of Enterprise Housing Credit Investment, told Multi-Housing News. “Housing affordability is top of mind for everyone, and our investors understand that LIHTC is a powerful, proven, and reliable way to increase access to capital for developers in communities around the country who are building the housing needed to fix our ongoing affordability crisis.”
President Biden’s recently announced Housing Action plan includes $55 million to expand the LIHTC program and includes a 10 percent annual increase in 9 percent allocations from 2022 to 2024 and a reduction in the 50 percent bond test to 25 percent from 2022 to 2026.
Enterprise Community Partners is a non-profit investor, developer and manager of affordable housing. According to Enterprise Community Partners, the company has invested $44 billion and created 781,000 units across the country since 1982.