By Dees Stribling, Contributing Editor
Washington, D.C.—The National Development Council has launched its 10th low-income housing tax credit (LIHTC) fund, NDC Corporate Equity Fund X L.P. (CEF X). The goal of the $100 million initiative is to allow NDC to continue to create affordable housing in both rural and urban settings nationwide, the same as previous funds.
The fund is a little more than a vehicle for using federal LIHTC. CEF provides equity capital for the construction and preservation of affordable housing using LIHTC, but also Federal Historic Preservation Tax Credits and Renewable Energy Credits. The fund provides equity for new construction and rehabilitation and partners with for-profit and not-for-profit developers and other general partners.
CEF’s investments are underwritten by NDC staff and monitored by its asset management team, which provides compliance and financial oversight and training and operational support to the project sponsors throughout the regulatory period. Under the new fund, NDC anticipates working both with current and new investors, as well as developers, according to Ann Vogt, managing director of NDC Housing and Economic Development Corp. and NDC CEF.
An example of a recent project funded by a NDC corporate equity fund is the Burl Oaks Townhomes in Sartell, Minn. The project, which is now under way, includes the construction of five buildings totaling 38 townhomes to provide affordable housing to area families. Four of the units are also set aside for formerly homeless tenants.
Over the past 17 years, CEF has raised and invested more than $450 million for the development of housing for families, seniors and people with special needs nationwide. In the process, the nonprofit has creating more than 7,500 units of housing in 28 states.