WNC Raises $192M in Institutional LIHTC Equity
The investment vehicle will be used to develop and upgrade more than 1,800 affordable housing units across 16 states.
WNC has closed WNC Institutional Tax Credit Fund 52 LP, raising $191.7 million in institutional low-income housing tax credit equity. WNC Fund 52 will be used to develop and renovate 1,873 affordable housing units across 16 states. Ten separate investors and 10 developers contributed to the LIHTC vehicle.
The properties are located in California, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Mississippi, the Carolinas, Nebraska, New Hampshire, Tennessee, Texas, Wisconsin and West Virginia. Several units will be set aside for veterans, homeless individuals, at-risk of homelessness or formerly homeless individuals, and people suffering from mobility, hearing and visual impairments.
Transformations in difficult to develop areas
Almost half of the 1,873 units are in difficult development areas or qualified census tracts. Some 42 percent of the apartment are situated in majority-minority tracts, where at least 50 percent of the residents are part of minority groups.
One of the projects within the fund is the adaptive reuse of Transformation Hill—a college dormitory for mixed tenancy in Blair, Wash., which will offer permanent housing to 40 individuals out of the foster care system. The fund is also set to invest in the development of Knox Residences in Springfield, Mass., the first phase of a two-phase project at the former Knox Automobile Co. building in the Winchester Square Historic District. According to Yardi Matrix data, First Resources Development Co. is set to convert the northern part of the former manufacturing facility into 55 units.
The properties within the fund are expected to create roughly 3,200 jobs, with an economic impact anticipated to generate more than $490 million in local income tax and other government revenue.
Last September, WNC closed three other LIHTC funds to support the construction or renovation of more than 2,300 affordable housing units across several states. Out of the three, WNC’s Institutional Tax Credit Fund 51 LP raised the largest amount—$132 million.