A nonprofit playing a major role in affordable housing across the country recently closed two funds that combined for a $365 million commitment.
Enterprise Community Partners closed two funds in its Enterprise Housing Partners Funds series, which has had three dozen iterations. Both funds utilize the Low-Income Housing Tax Credit, Real Estate Weekly reported.
The $365 million was contributed by 17 investors. The funds will be used to create or preserve more than 3,500 affordable rental homes across 17 states, in 35 different properties.
“Our investors come to us with the intent to make a real impact, and with their support we are able to channel critical resources into creating and preserving thousands of affordable homes nationwide,” said Scott Hoekman, president of the housing credit investments business for the nonprofit.
According to REW, Enterprise has closed four funds this year alone, raising $800 million for almost 8,000 affordable rental homes in the United States. Its two latest funds will contribute to properties in more than a dozen states, including California, Florida, Illinois and New York. The funds are also expected to create more than 5,700 jobs and generate $146 million in income for small businesses.
In one example of the kinds of investments Enterprise makes, the nonprofit put $4.5 million into a Hudson Partners Development plan this year to construct a four-building, 88-unit apartment complex in a Schenectady, New York, Opportunity Zone. The development will offer workforce housing and more than half the project will be affordable to renters earning less than 80 percent of the median area income.
MetaProp, a New York-based venture capital firm, agreed to partner with Enterprise in 2019 to invest in startups addressing the lack of affordable housing across the country. MetaProp said the firm would invest $5 million in a 12-month span, though Enterprise’s financial commitment was not disclosed.
Enterprise says since 1982, when it was founded by the prominent builder James Rouse (the developer behind the South Street Seaport) and his wife Patty, it has invested $44 billion and created 781,000 homes across all 50 states.
[REW] — Holden Walter-Warner