Fannie Mae announced that it will invest up to $50 million in a low-income housing tax credit (LIHTC) fund that will support properties in disaster-stricken areas. The investment is part of the company’s ongoing commitment to affordable rental housing in underserved markets.
Fannie Mae will partner with Boston Capital to invest in the Disaster Area Housing Recovery (DAHR) Fund I, which will target proprietary investments in LIHTC properties located in areas that have been declared to have experienced a major disaster or emergency and, thus, are entitled to disaster-relief support through the Federal Emergency Management Agency (FEMA) and other agencies.
"Disaster relief calls for many different considerations, and the repair and reconstruction of housing for our most vulnerable communities is just one way we can support underserved markets in America," said Dana Brown, vice president, LIHTC investments, Fannie Mae. "This fund allows us to channel much-needed capital to communities that have experienced a major disaster or an emergency.”
The DAHR Fund will provide capital to support the construction and rehabilitation of affordable and mixed-income housing to alleviate the impact of major disasters or emergencies to households and employers, and to assist in stimulating general economic activity in disaster-impacted areas. The fund also will support, when possible, hazard mitigation initiatives in the design of affordable and mixed-income housing.
Additionally, tenants in disaster-impacted areas will be able to get services through Fannie Mae’s Disaster Response Network to help manage FEMA and insurance claims, relocate to temporary housing, and find state and federal disaster housing assistance.
The Federal Housing Finance Agency approved Fannie Mae's reentry into the LIHTC market as an equity investor in November 2017. Since then, the government-sponsored enterprise has committed over $1 billion to LIHTC investments through a diverse group of funds in high-needs areas, including rural and Native American locations. Fannie Mae also has supported a range of projects for formerly homeless families and individuals and other targeted populations, as well as mixed-income tax-exempt bond transactions.
