Marble Cliff Capital, a new affordable housing finance firm, announced the closing of a $53.5 million low-income housing tax credit (LIHTC) fund that will facilitate the development or preservation of 419 units in seven developments.
In partnership with 10 institutional investors, the company was able to close Marble Cliff Capital Community Equity Fund 1, its inaugural tax credit fund, within its first year of operations despite the challenges posed by the COVID-19 pandemic, said the company. The properties are in five different states.
“Marble Cliff Capital is dedicated to tailoring LIHTC opportunities for community banks looking to make a significant impact in the name of affordable housing right in their own backyards,” said president Jack Kukura. “With this approach, community banks can fully participate in the LIHTC equity market and help provide safe and decent affordable housing within their banking footprint. The Fund 1 pipeline includes projects in rural, suburban, and urban markets, which only underscores the need for affordable housing across the spectrum.”
An affordable housing industry veteran, Kukura founded the firm after serving as chief investment officer at Ohio Capital Corporation for Housing.
Of the $53.5 million raised in Fund 1, 94% of the equity raised will be dedicated to new construction with the remaining 6% rehabilitating existing affordable housing. About 76% of the equity will be for age-restricted, senior projects while 24% will be for family developments. Eight-five percent of the equity is specified for 9% LIHTC projects and 15% for 4% projects.
One of the properties in the fund is Ruth Park Apartments, a 58-unit community for families in Traverse City, Michigan. The property will be located near the edge of downtown with access to numerous amenities, including public schools, public library, transportation, and shopping. Marble Cliff Capital will syndicate the LIHTC equity for developer Woda Cooper Cos.