Citibank Acquires $676M in Housing Tax Credits

WASHINGTON, DC-Citibank has purchased a $676-million portfolio from Fannie Mae of federal low-income housing tax credits for cash plus the assumption of Fannie Mae’s capital obligations relating to the investments. Representing less than 10% of its overall low-income housing tax credit holdings, this was the first Fannie Mae sale of a LIHTC portfolio of this size.

The portfolio consists of 12 funds that own 382 properties with a total of 31,050 units. Additional details of the sale were not disclosed, expect that neither the properties nor the tenants will be affected by the sale.

Ed Neill, senior vice president of Tax Advantaged Equity for Fannie Mae, tells GlobeSt.com that the agency is talking to a number of other investors about additional transactions. Whether or not a deal the size of the Citibank transaction will come to market is impossible to say at this stage, he says. “That depends on a number of factors.”