Alliant Capital Closes $130M LIHTC Fund
- Dec 17, 2020
Alliant Capital, a leading tax credit (LIHTC) firm, has closed on Fund 104, a $130 million low-income housing tax credit fund that will help create and preserve about 1,100 units of affordable housing for seniors and families in 13 properties. The assets will be located in Georgia, Missouri, Virginia, Michigan, Indiana, Texas, Utah and California.
Drew Foster, senior vice president of investor relations, said approximately 70 percent of the funds will be for new construction. About 750 of the units will go to senior citizens with most of the remaining units being set aside for subsidized units, he said.
“We’re really covering a large geographic footprint and I think that’s pretty indicative of Alliant’s typical fund profile,” Foster told Multi-Housing News.
Foster said Alliant’s investor base likes geographic diversification of the projects getting LIHTC funding. He noted that all of the investors in Fund 104 were repeat investors by design.
“In 2020, it was very much a continuation of existing investors for us and for many others,” Foster said, adding that industry-wide there was a hesitation to work with new people during the pandemic and subsequent recession. He noted a significant number of the developers Alliant are partnering with to provide the LIHTC equity funding are also repeat clients.
The pandemic also caused Alliant to tighten its underwriting. “I would say generally strengthening of reserves was a key component,” he told MHN.
Foster added budgeting for potential construction delays—as much as three to six months—was also part of this year’s underwriting as well as accounting for vacancy loss. Another trend for 2020, he said were simpler transactions with fewer layers of financing if possible.
“The trend we’ve been seeing generally is a flight to quality and projects that have fewer complications,” Foster said.
Dudley Benoit, Alliant executive vice president, said in a prepared statement providing affordable housing this year and into 2021 will be even more essential with the federal eviction moratorium scheduled to end soon. He said people facing job losses and displacement will need safe, clean affordable housing.
Alliant added more than 5,000 units of affordable housing to its portfolio this year, Benoit said. The firm has provided housing for more than 400,000 low-income families, seniors and veterans throughout the U.S.
Fund 104 is the third LIHTC fund Alliant closed this year. The firm reached $8 billion in equity earlier this year with the closing of Fund 102, a $92 million tax credit fund which helped develop eight properties with more than 870 units in five states and Washington, D.C. In July, Alliant closed Fund 103, a $65 million LIHTC fund that will help build nearly 650 new units for seniors and families in Arizona, Texas, North Carolina and Florida.
Fund 104 Projects
Among the projects included in Fund 104’s $130 million LIHTC fund are:
A new 70-unit multifamily development being built in partnership with MRE Capital, the second project for the partners. Seven of the units will be for households with income at or below 30 percent Area Median Income (AMI); 13 units for incomes at or below 50 percent AMI; 44 units for incomes at or below 60 percent AMI and six market-rate. Supportive services will include a food pantry, income-tax preparation, health counseling, weekly arts and crafts classes, exercise and nutrition classes, social events and an annual health fair. Completion is expected by December 2021.
Wimberly Manor, Winder, Ga.
New construction of five buildings with 72 units being built in a joint venture with KCG Cos. It is the 13th project for Alliant and KCG. Sixty-eight units will be LIHTC units affordable for senior citizens 62 and up. Site amenities will include a community center and clubhouse; preventative health screening and education for residents; healthy eating programs; on-call resident transportation services; library; wellness studio; crafts and media rooms and a laundry facility. The project is expected to be completed in 2021.
Reedley Village, Reedley, Calif.
It is the second and final phase of a two-phase acquisition and rehabilitation project. The first phase, Reedley Family, was completed in 2014 and contains 88 affordable housing units. Reedley Village will add another 32 units for families earning between 30 and 60 percent AMI. Alliant will be partnering with Corporation for Better Housing, a California nonprofit corporation. It will be Alliant’s 49th transaction with CBH and is expected to be completed in August 2021.
The project with Vecino Group calls for the acquisition and rehabilitation of three small public housing apartment complexes that will be converted to 86 LIHTC units for families. Two additional buildings will be constructed. All units will be subject to Rental Assistance Demonstration (RAD) subsidies and be restricted to households hearing 60 percent AMI or less. The project is expected to be completed in early 2022. This will be the fourth transaction between Alliant and Vecino.