Enterprise Raises $502M With 2 Latest LIHTC Funds

A portion of a rendering of Cleveland Scholar House. Image courtesy of Hiti, DiFrancesco and Siebold, Inc.

Enterprise Community Partners has closed on another two Low-Income Housing Tax Credit funds. Enterprise Housing Partners Funds XXXIX, or EHP 39, and XL, or EHP 40, raised $501.5 million from 19 investors. The funds were first offered in 2022 and attracted regional and national banks, who represented a mix of new and returning investors.

The funds aim to create or preserve 3,203 affordable rental units across 33 communities that are located throughout 18 states and the U.S. Virgin Islands. The portfolio includes communities in Alaska, Arizona, California, Colorado, Florida, Illinois, Maryland, Michigan, Minnesota, Missouri, New York, North Carolina, Ohio, Oregon, Pennsylvania, Utah, Virginia, Washington and the Virgin Islands.

Enterprise has already invested funds into certain affordable communities, including NP & Eastern in Seattle and Cleveland Scholar House in Cleveland. The NP & Eastern project involves the conversion of two historic midrise hotels in Seattle to a 109-unit community that will offer single-room occupancy and studio, one-, two- and four-bedroom apartments, along with two staff units. The apartments will be reserved for those making between 30 and 50 percent AMI.

Interim Community Development Association is sponsoring the project, whose renovations include enhancing safety features, replacing residential interiors, adding green features that will cut energy consumption, and modernizing mechanical, electric and plumbing systems. Construction for NP & Eastern started in December 2022 and the project is slated for a December 2023 completion.

Cleveland Scholar House is a new development that will offer 40 units in either two- or three-bedroom floorplans. The units will be subsidized by the Cuyahoga Metropolitan Housing Authority and will be reserved for those making between 30 and 50 percent AMI. The three-story community will also provide services for residents, including an onsite daycare, study space, computer lab and multiple common areas. The community is located within walking distance of Cuyahoga Community College and Cleveland State University. CHN Housing Partners is developing Cleveland Scholar House, having begun construction in October 2022. The community is expected online by October 2023.

Closing on its 40th LIHTC Fund

The two funds are also expected to create nearly 5,000 new jobs and an estimated $717 million in wages, business income and tax revenue for the communities that are a part of the funds. For Enterprise, the two funds add to a record year for the firm, investing $1.7 billion in housing credit equity for approximately 8,900 affordable homes. Overall, Enterprise invested $10.2 billion last year across its fixed-income, equity and housing credit products.

Prior to these fundraises, Enterprise closed its Enterprise Housing Partners Fund XXXVIII, or EHP 38, at $341.5 million. EHP 38 closed in June 2022 and made for its largest fundraise to date, preserving nearly 3,000 affordable units across 15 states.