Regions Bank Closes $126M LIHTC Fund
- Aug 26, 2021
A new $126 million tax credit equity tax fund managed by the Regions Bank Affordable Housing division has closed and will help create about 1,500 units of affordable housing at 16 properties in 10 states across the Northeast, Southeast and Midwest.
RAH Corporate Partners Fund 57 is comprised of four institutional investors with Regions Bank as a co-investor. The institutional investors were not disclosed. Fourteen of the 16 properties in the fund are repeat developer clients, according to Regions Bank.
The fund will support 16 affordable housing properties in Georgia, Tennessee, Texas, North Carolina, South Carolina, New York, California, Louisiana, Oklahoma and Wisconsin that are being financed through the Low-Income Housing Tax Credit program.
Twelve of the 16 developments are being designed for individuals and families and four are being constructed for seniors. Five of the 16 properties will reserve units for special populations including veterans, domestic violence survivors, and those requiring health and social services.
Previous Fund Efforts
In June 2020, Regions Affordable Housing closed on RAH Corporate Partners Fund 56, a $107 million tax credit equity fund that created more than 1,100 units of affordable housing. Fund 56 invested in 15 affordable housing properties financed through the LIHTC program in 10 states—Arkansas, Colorado, Georgia, Louisiana, Mississippi, New Mexico, New York, North Carolina, Oklahoma and Texas.
Eleven of the properties in Fund 56 were developed for families and four for seniors and nine set aside units for special populations including veterans, survivors of domestic violence and those requiring health and social services. Five institutional investors participated in Fund 56 and 14 of the 15 properties were being built by repeat developer clients.
Rob Chiles, president of Regions Affordable Housing, said in a prepared statement helping to provide affordable and inclusive housing is one of the most personal and powerful ways a bank can make a difference in the communities it serves. Chiles thanked the fund investors and developers who are also addressing the affordable housing needs of families and seniors across the United States.
Regions Affordable Housing is a national LIHTC investor, syndication firm and leader in affordable housing. Regions Bank is one of the nation’s largest participants in affordable housing finance through the LIHTC program. In July, Regions Bank helped new owner Standard Communities maintain a 108-unit affordable housing property in North Charleston, S.C., through the LIHTC program.
The acquisition of Osprey Place Apartments was part of a public-private partnership and totaled more than $22 million in capitalization, with approximately $8.9 million being invested into renovations. Additional financing included the LIHTC allocated by the South Carolina State Housing Finance and Development Authority that were later purchased by Regions Bank.