IRVINE, CA-National investor in real estate and community renewal initiatives WNC has closed WNC Institutional Fund 37, a $124.5-million federal low-income housing tax credit fund. In addition, the firm has closed Hawaii Tax Credits 36-3, a Hawaii state tax credit fund, at slightly more than $4.7 million. The combined funds include a total of 10 investors, three of which are new to WNC, represented by an equal number of banks and insurance companies.
“WNC Institutional Fund 37 is a national multi-investor fund formed to acquire a diversified portfolio of federal low-income housing tax credit properties,” said Will Cooper, Jr., president and CEO of WNC, in a prepared statement. “We were able to reach many parts of the US, including Alaska and Hawaii, while exceeding our initial fundraising goal by nearly 25%.”
Fund 37 will include nearly 2,000 units of affordable housing spread across 20 properties in 15 states. The properties include senior, family and mixed tenancy, with a combination of new construction and rehabilitation developments. Developers of these properties have completed an average of 22 LIHTC projects each.
Among the first properties in the fund is a development of 32 newly constructed single-family homes in Joplin, MO, an area ravaged by tornadoes in 2011, where thousands of homes were destroyed. Additionally, the Hawaii fund features the new construction of a 160-unit community for seniors in Honolulu.
A spokesperson from WNC tells GlobeSt.com, “Demand for affordable housing continues to grow throughout the US, and WNC continues to successfully provide investors the opportunity to help meet this demand through use of the federal low-income housing tax credit. Since its introduction during the Reagan Administration 26 years ago, LIHTC has been one of the most successful public/private partnership programs in history and continues to play a vital role today.”
As GlobeSt.com reported in September, WNC has partnered with three community development organizations to provide Westervelt Co. with $55.5 million in New Markets Tax Credit financing for construction of a $71-million alternative-energy wood-pellet manufacturing plant in Aliceville, AL. The financing and development are taking place with an eye toward jobs creation in the region, which has a poverty rate of approximately 27% and an unemployment rate flirting with 12%.