Google Taps U.S. Bancorp to Manage LIHTC Fund
U.S. Bancorp Community Development Corporation (USBCDC) will be managing an $86 million low-income housing tax credit (LIHTC) fund for Google, the popular search engine firm. The fund will provide a major source of funding for the construction and operation of 480 affordable rental housing units for low-income families and senior citizens in seven communities throughout the West and Midwest.
USBCDC originated the LIHTC investments with experienced LIHTC housing developers to oversee the completion and lease-up of housing developments in Waukegan, Ill.; Apple Valley, Minn.; Des Moines, Iowa; Milwaukee, Wis.; and Fontana, Palm Springs,, and Salinas, Cal. This is USBCDC’s first LIHTC fund with Google.
Relatively new as an investor of LIHTCs, Google is bringing fresh capital to the industry at a time when many developers of low-income housing projects have been faced with significant financial gaps. The fund includes housing developments in the Midwest, an area where affordable housing investment has lagged in recent years, as well as in California, where Google’s Mountain View headquarters is based. Many of the complexes include a range of one- to four-bedroom apartments, and offer a shared laundry facility and community gathering area. In addition to this USBCDC-sponsored fund, Google also recently invested in two other low-income housing projects for senior citizens in Sunnyvale and Inglewood, Cal.
“The expansion of the affordable housing investor base beyond traditional investors is an exciting development for the industry and comes at an important time,” said Larry Baerveldt, director of tax credit syndications for USBCDC. “This investment by Google, together with the efforts of our strong developer partners, will result in completion of nearly 500 new affordable rental housing units for low-income families and senior citizens.”