A leading tax credit firm focused on affordable housing announced it has closed on a $65 million low income housing tax credit (LIHTC) fund aimed at creating hundreds of new units in states that are among the hardest hit by the coronavirus.
Alliant Capital announced this month that it has closed on Fund 103, which will facilitate the creation of 650 units for seniors and families in states including Arizona, Texas, North Carolina and Florida.
"Creating affordable housing in states where the pandemic is spreading quickly addresses the critical need for this type of support in our current climate," Shawn Horwitz, Alliant Capital's CEO said in a statement announcing the move. "We remain focused on supporting communities in need across the country."
Initially following the economic downturn that resulted from the coronavirus pandemic, some LIHTC firms decided to pause their investments, and some market watchers felt the trend could have broad impacts similar to the 2008-2009 recession where investors left the market for a time or were investing at a much lower level, which eventually had a direct impact on pricing.
Despite initial fears about the impacts of the coronavirus, other observers have noted that the low-income housing sector won't be greatly affected by the downturn and may recover more quickly than other real estate markets.
According to a recent report by Novogradac, a national accounting and consulting firm, occupancy rates and rental income at low-income housing tax credit properties recover quickly after economic downturns.
Regardless of the projections, over the past few months other large LIHTC funds have closed, including WNC announcing in May that it closed a $90 million fund.
With the announcement Wednesday, Alliant said it has provided housing for more than 400,000 low income families, seniors and veterans throughout the country, and, with more than 1,000 properties under the LIHTC program, the company's portfolio exceeds $16 billion in assets.
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Max Mitchell
Max Mitchell is ALM's Regional Managing Editor for The Legal Intelligencer, New Jersey Law Journal, Delaware Business Court Insider and Delaware Law Weekly. Follow him on Twitter @MMitchellTLI. His email is [email protected].
