Hunt Capital Partners (HCP) has announced the closing of a $163.5 million national low-income housing tax credit fund.
Hunt Capital Partners Tax Credit Fund 48 includes a mix of family and senior housing developments, creating 1,571 affordable homes in 15 developments across 10 states with nonprofit, for-profit, and local housing authority development partners.
In addition to creating new homes, 22% of the fund includes the historic preservation and adaptive re-use of important developments in the communities they serve. One such property, El Jardin, is the adaptive reuse of a historic hotel built in 1926 and located in downtown Brownsville, Texas. HCP is supporting the Housing Authority of the City of Brownsville, as El Jardin creates 44 units of affordable housing with rental assistance and community space, bringing the building and surrounding downtown area back to life.
“Hunt Capital Partners is especially appreciative of our investor and developer partners this year,” said Amy Dickerson, managing director of investor relations at HCP. “Their partnership, tenacity, and creativity in the midst of rising costs and interest rates is what gives 1,571 more families a place to call home, in times where rent is rising much faster than income. Our thanks also go out to all the state, county, and city programs that have allocated more credits and found new sources of soft funds to help fill the gaps that have developed in the last couple of years.”
Rents for units in the fund are on average 37% below comparable market-rate units, with some developments offering as much as an 81% rent advantage to market, allowing tenants of these new developments to grow and thrive in healthy communities with the additional support of transitional and permanent housing programs and services. All developments feature Energy Star appliances and low-flow water-conserving fixtures, with some using renewable energy through solar photovoltaic and thermal systems. Several developments also include resiliency features for unexpected events such as power outages, water intrusion, and strong winds.
Several projects within the fund are anticipated to further support the health and well-being of families through on-site services at no charge to the resident. For example, 46% of the developments in the latest fund will provide services designed to encourage community connection and move low-income families up the economic ladder.
Toward that end, HCP worked alongside Mile High Ministries, a nonprofit developer in Denver to offer services at Clara Brown Commons, a four-story, elevator-serviced supportive housing community that offers 14 one-, 28 two-, and 19 three-bedroom units to low-income households earning up to 20%, 30%, 50%, 60%, and 80% of the area median income. Clara Brown Commons will offer support in key areas, ranging from job training, legal services, mental health care and counseling, early childhood education, life skills training, and leadership development to its residents.
In addition to the new fund, HCP has created or expanded five proprietary funds since January. In total, HCP, the tax credit syndicator division of Hunt Cos., has closed over $2.8 billion in tax credit equity through its multi-investor and proprietary funds since inception.