After re-entering the Low Income Housing Tax Credit market just over a year ago, Fannie Mae is continuing its focus on affordable rental housing in underserved markets by committing $145 million in new investments in LIHTC funds.
Fannie Mae announced recently that it plans to invest as much as $145 million in three low-income housing tax credit funds: Cinnaire Fund for Housing LP 33, Ohio Equity Fund for Housing LP XXVII, and MHEG Fund 50 LP.
Through the commitment, Fannie Mae has committed to invest up to $35 million in the Cinnaire Fund for Housing LP 33 with Cinnaire Corporation. The Cinnaire fund currently manages a total of $150.8 million and plans to invest in partnerships that own LIHTC properties in Illinois, Indiana, Michigan, Minnesota, and Wisconsin.
Additionally, Fannie Mae plans to invest up to $50 million in Ohio Equity Fund for Housing LP XXVII with Ohio Capital Corp. The total amount of the fund will be between $250 million and $275 million.
The fund plans to invest in LIHTC housing projects in Ohio, Indiana, Michigan, Kentucky, Pennsylvania, Tennessee, and West Virginia.
Fannie Mae has also committed to invest up to $60 million in MHEG Fund 50 LP with Midwest Housing Equity Group. That fund manages a total of $182 million and plans to invest in partnerships that own 41 LIHTC properties in Nebraska, Iowa, Missouri, Kansas, Colorado, Oklahoma, and Texas.
“Fannie Mae plays an increasingly important role in supporting underserved markets in rural America,” Dana Brown, Fannie Mae’s vice president of LIHTC investments said. “These funds will allow us to channel much needed capital to support neighborhoods that need it most.”
The three funds are all members of the National Association of State and Local Equity Funds, a nonprofit association that promotes efficient management of state and local equity funds.
“It is good to have Fannie Mae back as a low-income housing tax credit investor,” said Bill Shanahan, president of The National Association of State and Local Equity Funds and president of Northern New England Housing Investment Fund. “Working with our nonprofit NASLEF members, Fannie Mae is helping bring much needed capital to the rural, underserved markets. It can be a challenge to attract capital to these markets.”