Morgan Stanley and National Equity Fund, Inc. (NEF), are extending their effort to support disaster-area recovery with an additional $25 million in capital and a broader geographic area for the Rebuilding Local Economies fund they launched last year.
The $125 million fund supports the development affordable housing in devastated areas to help replace damaged homes and jump-start economic activity. The capital is focused on low-income housing tax credit projects.
The fund covers Federal Emergency Management Agency-declared storm disaster areas in 27 states, with West Virginia and additional counties in Indiana, Kentucky, and Tennessee added in response to the storms in February and March.
“We are pleased that the Rebuilding Local Economies fund has already led to job creation and affordable housing opportunities for communities facing tough economic conditions in the midst of natural disaster,” said Mike Mantle, senior advisor at Morgan Stanley Global Sustainable Finance.
When all $125 million is invested, the fund will have supported the development of approximately 1,000 affordable housing units and the creation of thousands of jobs. To date, about $90 million has been committed to projects.
In Guthrie, Okla., which was hit by tornadoes last May, NEF is working with Express Development and its partners on a development that features 40 single-family rental homes.
In Minot, N.D., a community that was severely damaged by historic flooding last year, NEF has committed financing to help Artspace Projects, Inc., develop a 32-unit project for low-income artists and their families.
NEF, a national nonprofit tax credit syndicator, is managing the fund and has made $4 million in predevelopment capital available to help expedite projects in which the fund invests.