“We have continued to expand our reach by forging important new relationships,” explains Cooper. “This fund was closed with nine new developer relationships and 50% of the capital came from new investors.” The fund closed with seven institutional investors, including five regional and national banks and two national insurance companies.

Cooper tells GlobeSt.com that the affordable housing industry received a significant increase in new investor capital in 2010 and 2011. As a result, he says, “investor yields dropped significantly but have now somewhat stabilized.” He adds that he expects investor demand to remain healthy in 2012 in this space “due largely to low interest rates and a lack of fixed income alternatives with low risk and healthy returns.”

He says that WNC has experienced strong demand from both the company’s existing investor base and new investors coming into the market. “Unlike the peak of the market in 2007 when investors were limited mainly to the now defunct GSEs and major banks, we are seeing demand from a broad base of investors including state, regional and national banks as well as large insurance companies,” he says.

WNC has now closed a total of 200 affordable funds since its founding in 1971. The firm is currently on track to close its next national fund in July 2012.