Enterprise Closes Affordable Housing Fund at $236M
- Jul 23, 2021
Enterprise Community Partners has closed its second affordable housing fund this year at nearly $236 million. The Enterprise Housing Partners Fund XXXV (EHP 35) launched in March and saw commitments from 10 investors.
The low-income housing tax credit fund will be used to create or preserve 2,529 affordable homes across 19 properties in 14 states. The properties or projects are located in Alabama, California, Colorado, Florida, Illinois, Kentucky, Massachusetts, Minnesota, Montana, New York, North Carolina, Pennsylvania, Washington, and Wisconsin.
In November, Enterprise also provided a $10 million grant for a project converting a hotel into a 491-unit community of affordable and supportive housing.
As for EHP 35’s communities, Scott Hoekman, president of Enterprise’s housing credit investments business, told Multi-Housing News that many of the 19 properties are new constructions that are currently being built.
“Enterprise’s national team of originators engages with new and existing affordable housing developers on a regular basis,” Hoekman told MHN about how the company identified these projects. “Enterprise partners with nonprofit and for-profit developers to cultivate deals that deliver maximum community impact while meeting investors’ criteria.”
In Missoula, Mont., Enterprise and its EHP 35 fund will provide financing to Villagio, a 200-unit community being developed by Blue Line in collaboration with the Missoula Housing Authority. The community will offer two- through four-bedroom units reserved for those making between 30 and 60 percent AMI. Villagio is expected to complete construction in spring 2023.
Enterprise also identified 11010 SMB, a five-story modular building in Los Angeles, for the EHP 35 fund. The community will offer 50 studio apartments for homeless seniors who are at least 62 years old, 28 of which will be reserved for veterans.
The community is being developed by The Weingart Center Association, who will also provide onsite social services to tenants, alongside co-developer and co-sponsor Valued Housing II. Half of the community’s units will be subsidized through Section 8 vouchers and the other half through Veterans Affairs Supportive Housing. The community, which is aiming for LEED Gold certification, is expected to be completed in fall of 2022.
FOUR FUNDS FOR 2021
EHP 35 is Enterprise’s second multi-investor housing credit fund that launched in 2021. The company is also planning to close on two other similar funds this year.
The first of Enterprise’s 2021 funds, EHP 34, raised nearly $200 million from seven investors and will be used to create 1,794 affordable homes through 14 properties across 10 states. EHP 34 closed in February and saw investors that included major national and regional banks, most of which are repeat investors, according to Enterprise.