Enterprise Community Partners has announced the closing of two low-income housing tax credit (LIHTC) funds that have raised a combined $444.5 million.
Enterprise Housing Partners Funds XLI (EHP 41) and XLII (EHP 42) will help create or preserve 3,500 homes for nearly 9,200 households in 36 properties in 16 states.
Nineteen investors participated in the two funds.
“Through EHP 41 and 42 and with the support of our investors, we're building and protecting critically needed housing across the country, from rural areas threatened by climate change to urban cores struggling with the homelessness crisis,” said Scott Hoekman, president of Enterprise’s housing credit investment business.
Two properties that will be supported by the funds are Yosemite Apartments, a rehabilitation of a 32-unit apartment building in San Francisco, and Escalante Meadows, an 80-unit apartment building that will be built in Guadalupe, California.
Yosemite Apartments, an investment from EHP 41, will undergo its first substantial renovation since the building was constructed in 1924 with the installation of heat pumps, a roof replacement, and accessibility improvements, as well as new floors, doors, appliances, and bathroom fixtures. All the apartments will be affordable to households earning at or below 60% of the area median income (AMI); eight will also have project-based Section 8 subsidies. The Tenderloin Neighborhood Development Corp., a community-based nonprofit developer in San Francisco, is the project’s sponsor. The rehabilitation is expected to be completed by February 2024.
Escalante Meadows, an investment from EHP 42, will replace an aging 52-unit public housing development in its rural community with a newly constructed apartment building. Seventy-seven units will have rental subsidies, with a portion set aside for specific demographics: 15 for people experiencing homelessness and high health costs, three for veterans, and seven available first to people recovering from disasters like wildfires. Enterprise is also investing $4.1 million in New Markets Tax Credit allocations in the construction of a two-story community center with an early childhood education center and wellness center next door. The Housing Authority of the County of Santa Barbara is the project’s sponsor, and construction is expected to be completed by August 2024.
Enterprise estimates that investments from its latest LIHTC funds will create more than 5,200 new jobs and bring an estimated $795 million in wages, tax revenue, and business income to the surrounding communities.