Fannie Mae announced Monday it will invest in $100 million to help Hurricane Harvey impacted areas and underserved markets.
Back in November, both Fannie Mae and Freddie Mac announced they are now re-entering the Low Income Housing Tax Credit market, the federal program which encourages investment of equity into affordable rental housing.
Now, Fannie Mae announced its $100 million low-income housing tax credit fund, saying the fund will focus on supporting affordable multifamily housing.
The fund will be known as the Raymond James Affordable Housing Fund 11, and will be managed for Fannie Mae by its partner in the fund, Raymond James Tax Credit Funds.
The Raymond James Affordable Housing Fund 11 will focus on Hurricane Harvey impacted areas, rural markets and Native American housing. It will back multifamily projects in these underserved areas by funding for rehabilitation and construction.
The fund will also support resiliency features in properties which are located in markets subject to flood and storm activity, and is expected to make its first investment during the first quarter of 2018.
“With the Raymond James Affordable Housing Fund 11, LLC, we can reach out to underserved markets and have a meaningful impact,” said Dana Brown, Fannie Mae vice president of LIHTC Investments.
“There is a need for capital to help shore up the supply of housing damaged by Hurricane Harvey and other underserved markets,” Brown said. “This fund vehicle is an ideal tool to help make this happen and to support affordable multifamily housing overall.”
The Federal Housing Finance Agency approved Fannie Mae’s re-entry into the LIHTC market as an equity investor.