Morgan Stanley announced that it is committing $110 million toward financing affordable rental housing across the country.
In partnership with National Equity Fund, Inc. (NEF), Morgan Stanley is capitalizing a $50 million low-income housing tax credit (LIHTC) investment fund and providing $60 million to finance several hundred million dollars of additional NEF housing fund investments, announced the firms.
The $110 million commitment is expected to underpin 3,300 homes for low-income families, seniors, and special-needs residents and help create 6,500 jobs.
“Morgan Stanley’s commitment is absolutely critical in this financial environment,” said Joe Hagan, NEF president and CEO, in a statement. “Communities that literally have been starved for LIHTC equity over the last year and seen no new affordable housing activity will be able to move some of their projects forward. That’s huge.”
The investment also effectively leverages federal affordable housing stimulus dollars in the Tax Credit Assistance Program and the Sec. 1602 tax credit program, said the firms. These programs were created last year under the American Recovery and Reinvestment Act.