Group Closes Two LIHTC Funds for 615 Units

May 26, 2009
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Centerline Capital Group has closed two proprietary low-income housing tax credit (LIHTC) funds to raise approximately $70 million of equity proceeds that will finance the production or preservation of eight affordable multifamily housing developments containing 615 units of affordable housing.

Centerline’s affordable housing transaction team, led by Andrew J. Weil, executive manager of the affordable housing group, acknowledged the capital markets have been constrained for well over a year, and raising money in the current environment, especially in the tax credit arena, has been difficult.

The eight properties designated to receive equity proceeds from the two investment funds include four located in Southern California, one near Philadelphia, one on the Gulf Coast, one in central Pennsylvania, and one in Virginia. All five geographic regions where the properties are located exhibit stresses in their single-family housing markets, where, as foreclosures increase, the need for adequate affordable multifamily housing increases.

Since the inception of the LIHTC program in 1986, Centerline-sponsored LIHTC funds have raised more than $9.8 billion of gross equity from third-party investors to support production of affordable multifamily housing.