PNC Bank has announced the closing of a $181 million low-income housing tax credit (LIHTC) fund to help finance the construction or rehabilitation of nearly 1,800 affordable housing rental units at 17 multifamily properties across 13 states.
Institutionally managed by PNC Bank, the fund includes investments from 12 of the largest national banks and insurance companies in the U.S., in addition to PNC’s own investment. To date, the fund has acquired nine properties in several states, including California, Michigan, New Jersey, and Oregon. Construction has begun on nine of the acquired properties, and commitments have been formalized with an additional eight investments.
“PNC has been a leader in developing and rehabilitating affordable housing for years,” said Meg Ryan, senior vice president and manager of investment syndication for PNC Tax Credit Solutions. “This fund provides critical capital to continue these efforts and address the affordable housing shortage in our country. We’re thankful to our 12 investors for their commitments to the fund and for their ongoing commitment to affordable housing.”
An industry leader, PNC Bank invests in, sponsors, and syndicates funds investing in LIHTCs, New Markets Tax Credits (NMTCs), historic tax credits (HTCs), and affordable housing preservation projects. PNC is one of a small number of banks that have successfully launched a dedicated business, PNC Tax Credit Solutions, that is devoted to preserving and bolstering affordable housing supply and spurring economic development, said the firm. Additionally, PNC has launched more than 90 proprietary syndicated tax credit funds to support LIHTC, NMTC, HTC, and preservation efforts and projects.
“Affordability of rental housing is an urgent issue for many Americans,” said Todd Crow, executive vice president and head of PNC Tax Credit Solutions. “Market rents are beyond the reach of too many families and seniors in the U.S., and that trend has intensified in the last few years as housing costs have soared. At PNC, we know it’s never been more critical to work with our developer partners and investors to increase and preserve the supply of affordable rental housing.”