PNC Closes LIHTC Fund at $208M
The investment vehicle will finance the construction or rehabilitation of more than 2,000 affordable units.
PNC Multifamily Capital has closed its LIHTC Fund 98, amassing commitments of more than $208 million for the development and rehabilitation of affordable housing across the U.S.
Investors included PNC and seven other financial services and insurance companies. Two of the capital providers were new to the company’s LIHTC funds.
The investment vehicle will finance the construction or rehabilitation of more than 2,000 affordable units in 15 communities across 11 states. The properties cater to families, but also seniors, people experiencing homelessness and those with special needs.
PNC Multifamily Capital managed roughly $15.5 billion in tax credit equity, supporting more than 133,000 affordable units, at the end of 2024. The company also held a $31 billion agency loan portfolio.
Properties to benefit from LIHTC Fund 98
Two of the senior housing properties on track for rehabilitation through LIHTC Fund 98 are the Albert Einstein Residence Center in Sacramento, Calif., and Stiegel School Apartments in Manheim, Penn.
Built in 1981, the 78-unit Sacramento community will undergo renovations. In addition, a local organization will provide its senior residents new supportive services.
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In Pennsylvania, the investment vehicle will fund the adaptive reuse of a 1914-built elementary school slated to turn into a 44-unit senior housing property. Apartments will cater to seniors earning at 20, 50, 60 and 80 percent of the area median income.
Also in The Keystone State, LIHTC 98 backs the ground-up development of Walnut Square Apartments, a 38-unit income-restricted project in Allentown, Penn., aiming for LEED Silver certification. Future residents may also receive supportive services.
Maintaining affordability as LIHTC compliance period ends
Since its inception in 1986, the LIHTC program has been instrumental in ensuring housing affordability. However, many communities are approaching the end of their compliance period and their income-restricted status may be at risk.
In 2025 alone, roughly 29,000 private LIHTC units are on track to reach the end of their initial 15-year compliance period, according to a Yardi Matrix affordable housing report. In addition, another 15,000 are set to meet the end of their extended 30-year period.
Maintaining an income-restricted status is possible through debt, equity subsidies and 4 percent LIHTC funding. More and more such funds are being created—just in December, Red Stone Equity Partners closed its largest LIHTC vehicle to date at $263.2 million, while Hunt Capital Partners closed a $193.5 million LIHTC equity fund.
