The funds will focus on underserved markets in rural areas
Fannie Mae has committed up to $145 million in investment in three low-income housing tax credit (LIHTC) funds that will focus on underserved markets in rural areas.
The investment is part of Fannie Mae’s ongoing commitment to provide a reliable source of capital for affordable rental housing in underserved markets.
Fannie Mae has committed to invest up to $35 million in Cinnaire Fund for Housing LP 33, up to $50 million in Ohio Equity Fund for Housing LP XXVII, and up to $60 million in MHEG Fund 50 LP.
Cinnaire Fund manages a total of $150.8 million and will invest in partnerships that own LIHTC properties located in Illinois, Indiana, Michigan, Minnesota, and Wisconsin. Approximately 37% of its portfolio supports affordable housing in rural markets.
Ohio Equity Fund will have a total amount of $250 million to $275 million and will invest in LIHTC housing projects in Ohio, Indiana, Michigan, Kentucky, Pennsylvania, Tennessee, and West Virginia. Thirty-four percent of its investments support affordable housing in rural markets.
MHEG Fund manages a total of $182 million and will invest in partnerships that own 41 LIHTC properties in Nebraska, Iowa, Missouri, Kansas, Colorado, Oklahoma, and Texas. Sixty-eight percent of its current projects support affordable housing in rural markets.
The Federal Housing Finance Agency approved Fannie Mae's re-entry into the LIHTC market as an equity investor in November 2017. This expands the company's efforts to increase and improve affordable housing stock and help those markets most in need of support.
"Fannie Mae plays an increasingly important role in supporting underserved markets in rural America," said Dana Brown, vice president for LIHTC investments at Fannie Mae. "These funds will allow us to channel much-needed capital to support neighborhoods that need it most."