The Richman Group Affordable Housing Corp. has announced the recent closing of two low-income housing tax credit multi-investor funds that will finance the construction or preservation of nearly 50 properties.
The $535 million in equity raised will support projects serving more than 4,000 households, including families, seniors, veterans, and formerly homeless individuals across 27 states.
More than 40% of the units will target households earning less than 50% of the local area median income. All units will incorporate energy-efficient features, and the developments are expected to generate jobs and increase the stock of affordable housing in each community they enter.
"With these latest closings, The Richman Group raised over $1.4 billion in equity across both multi- and single-investor funds in the last year," said Stephen M. Daley, executive vice president, who led the effort from the firm's Charleston, South Carolina, office. "Institutional investors are attracted to Richman funds because of the firm's extensive experience in the affordable housing industry, conservative underwriting, and track record of delivering results. These funds offer Community Reinvestment Act-qualified investments while providing a highly attractive, risk-adjusted return."
The institutional investors involved in the latest funds include leading banks and insurance companies, noted officials.
To date, The Richman Group has raised approximately $20 billion in equity to finance affordable housing production across the country. The firm's portfolio spans nearly 1,200 properties and more than 102,000 units nationwide, ranking its portfolio among America's seven largest.