Key facts
- Greystone Real Estate Capital closed its second fund in less than a year, raising $137 million.
- The firm's total multi-investor Low-Income Housing Tax Credit (LIHTC) equity now exceeds $240 million.
- The new fund will finance 11 developments across 20 properties in nine states, creating 1,960 affordable housing units.
- LIHTC investment reached $30.1 billion in 2025, up 4% from 2024.
- Federal legislation increased states' LIHTC allocations and lowered bond-financing thresholds for certain deals.
- Fannie Mae and Freddie Mac's annual LIHTC investment caps were doubled to $2 billion each.
Greystone Real Estate Capital has successfully closed its second fund in less than a year, securing $137 million for affordable housing projects. This latest fund brings the firm's total multi-investor Low-Income Housing Tax Credit (LIHTC) equity to over $240 million. The fund will support 11 developments across 20 properties in nine states, aiming to create 1,960 affordable housing units.
The firm's capital raise coincides with a growing LIHTC market, bolstered by federal and state-level policy changes. The One Big Beautiful Bill Act permanently increased states' LIHTC allocations and lowered bond-financing thresholds, while federal regulators doubled the annual LIHTC investment caps for Fannie Mae and Freddie Mac to $2 billion each.
Greystone's new fund allocates 60% to new construction and 40% to rehabilitation, with 84% of the equity going to repeat developers. Eighty percent of the properties carry project-based rental subsidies, and residents typically earn 56% of the area median income, indicating a focus on deeply subsidized housing.
Overall LIHTC investment reached approximately $30.1 billion in 2025, a 4% increase from the previous year, according to CohnReznick. Multi-investor funds like Greystone's captured 44% of the syndicated equity market in 2025.