GREENWICH, CT–The nation’s leading insurance, financial and banking institutions contributed in equity for the Richman Group Affordable Housing Corporation’s closing of a $250-million US Institutional Tax Credit Fund. Known as Fund 84, it includes a portfolio of 28 properties located in 15 states, the company announced on May 31.
The properties acquired by Fund 84 will provide affordable housing for family, senior and special needs tenants across the country, adding 2,325 units to Richman’s portfolio, which exceeds 110,000 units total, Stephen M. Daley, EVP of Richman, tells GlobeSt.com. “The need for affordable housing across the US is significant,” he says.
During the financial crisis, various tools were included in the federal American Recovery and Reinvestment Act of 2009 that assisted in the development of some of these affordable properties, Daley adds. But the demand for units still remains high. “There is a longstanding need for quality, safe, affordable housing throughout the US,” he says.
Fund 84 was oversubscribed by almost $100 million, according to Daley. More than 70% of the properties in the fund will be sponsored by developers whose other properties were acquired by funds previously sponsored by Richman. “We have a pretty loyal customer base and developers for affordable housing,” he says.
Surpassing $8 billion of capital under management, the firm and its affiliates have developed more than 14,000 residential units nationwide. And serving as a developer and now a mortgage lender, the firm provides asset management services to approximately 100 public, private and investment funds.
The company is the eighth largest owner of affordable and market-rate rental properties in the US. Some of the company’s recent neighborhood revitalization projects include Wharfside Commons in Middletown, CT; Park Vista at Croton Heights in Yonkers, NY; Grande Oaks in Tampa, FL; and Rippowam Park in Stamford, CT.
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