WASHINGTON, DC–Fannie Mae has announced its first fund under its recent authority to resuming investing in the Low Income Housing Tax Credit market. It has partnered with Raymond James Tax Credit Funds for a $100 million offering.
The fund will focus on markets that were impacted by Hurricane Harvey last year, as well as rural markets and Native American housing, backing multifamily projects with funding for rehabilitation and construction. The fund will also provide financing for resiliency features in properties located in areas subject to flood and storm activity. The fund is expected to make its first investment in the first quarter of 2018.
The fund will behave as a typical fund does, with the total purchasing power increasing as debt is added to the deals — which will depend on whether the LIHTC is a 4% or 9% transaction and what the targeted income levels are.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
