Irvine-based WNC has closed a record-setting capital raise for its latest LITCH fund. WNC Institutional Tax Credit Fund 50 LP secured $176 million in equity commitments from 9 investors. The capital will support the development of 2,160 affordable housing units in 16 states. The record capital raise illustrates momentum in the LIHTC space and strong investor demand.

"The demand for affordable housing tax credit investing continues to be strong, evidenced by WNC's record-setting capital raise in the past two closed funds," Christine Cormier, WNC's EVP of investor relations, tells GlobeSt.com. "Although the economy was challenged in 2020, our investors understood that the need for affordable housing was stronger than ever. While a couple of investors continue to take a pause, most are back to investing."

Investors hit pause at the beginning of the pandemic—as there was wide-spread uncertainty. Early on, there was concern about what this would mean for LIHTC funds, but the housing sector's performance quickly brought many back into the fold. The sector outperformed market-rate apartments last year with strong rent collections and occupancy despite the market disruption. "While many real estate markets faced and continue to face significant challenges during COVID, the LIHTC funds held up well.  Data from both WNC's portfolio as well as the industry as a whole showed that rent collections had not dropped as investors had feared," Cormier. "Investors looked to tax credit investors as both a safe and mission driven investment that was a great option for their investment dollars."