Merritt Community Capital announced that the final round for its Fund XXII closed in December, raising $137 million, the largest California multi-fund of 2021. The low-income housing tax credit (LIHTC) fund will finance 11 projects and create 616 affordable homes across the state.
Fund XXII has 12 investors, including four new and eight existing investors, three of whom made their largest investment with Merritt to date.
In addition to being the largest fund to date, Fund XXII helped Merritt reach the milestone of surpassing $1 billion of affordable housing investment in California since its inception in 1989.
“At Merritt, we lead with mission—it’s the belief that drives everything we do,” said Ari Beliak, president and CEO, who took the helm at Merritt in 2019. “We believe that by harnessing the power of capital to finance affordable housing, we will improve the lives of low-income people across California. Further, we believe that through our partnerships with funders, developers, and the affordable housing community, we can solve California’s housing crisis. Reaching the $1 billion milestone is exciting as we build momentum, accelerating Merritt’s impact. We look forward to continuing to grow and increasing our support of projects and people across the state.”
For 33 years, Merritt has partnered with mission-oriented housing developers to ensure that critical communities are developed or preserved for low-income residents. Accordingly, nine of the 11 properties financed by Fund XXII serve residents experiencing homelessness, who have special needs, or are seniors. Nine projects will be new construction, and partners represent a mix of both urban and rural developers.
Among Merritt’s new partners is Allied Housing, the development arm of Abode Services, the sponsor for Depot Community Apartments, a 125-unit permanent supportive housing development in Hayward.
Depot Community Apartments provides studio apartments for extremely low- and very low-income households, nearly half reserved for residents experiencing homelessness. Residents will have access to enhanced wraparound on-site supportive services provided by Abode Services. This project is supported by two voter-approved measures—2016’s Measure A1 in Alameda County and 2018’s state Proposition 1—furthering the goals of both the county and state to end homelessness. Additionally, the project team utilized recent state measures to streamline the approval processes and leverage additional units.
This month, Merritt brought to market its 23rd fund, with its most ambitious goal yet—raising $150 million in equity. Also in 2022, Merritt will be launching proprietary funds with mission-aligned investors.
