Key facts
- WNC & Associates closed a $210 million Low-Income Housing Tax Credit fund.
- The fund, WNC Institutional Tax Credit Fund 59, L.P., will invest in 2,015 units across 13 states.
- The portfolio includes seven new-construction communities and 11 preservation deals.
- Five properties will serve seniors, and 13 will provide family housing.
- The fund leverages Low-Income Housing Tax Credits, Energy Tax Credits, and Historic Tax Credits.
WNC & Associates has successfully closed a $210 million Low-Income Housing Tax Credit (LIHTC) fund, designated as WNC Institutional Tax Credit Fund 59, L.P. This significant financial vehicle is set to support 18 affordable housing communities across 13 states, aiming to create or preserve over 2,000 rental homes.
The fund's investments will span 2,015 units, encompassing both new construction and the preservation of existing properties, including historic rehabilitations. The portfolio is balanced to serve diverse needs, with five communities designated for seniors and 13 focused on family housing.
For developers and homebuilders facing challenges from higher interest rates, increased construction costs, and tighter capital markets, this fund offers a crucial source of equity capital. LIHTC equity is highlighted as a key scalable tool for financing income-restricted rental properties. Fund 59 will primarily utilize LIHTCs, supplemented by Energy Tax Credits and Historic Tax Credits, a strategy increasingly adopted to manage rising costs and fund energy efficiency upgrades.
WNC positions this initiative as a response to the substantial national housing shortage, noting a deficit of 7.2 million affordable and available rental units for extremely low-income renters. Since its founding in 1971, Irvine, California-based WNC and its affiliates have amassed approximately $21.7 billion in assets, including over 1,770 affordable rental properties that benefit more than 1 million residents. The firm has established partnerships with over 400 developers and 175 institutional investors.