PNC Closes $100M Affordable Fund

Buyers for many of these properties “were not necessarily part of the affordable housing investment/development community,” says Crow.

PITTSBURGH—Already an active participant in the affordable housing market, PNC Bank has closed a $100-million fund to preserve apartments for low- and moderate-income renters. Known as PNC Affordable Rental Housing Preservation Fund 1 LLC, it’s said to be among the first and largest institutionally-managed funds of its kind.

The new fund will be used to acquire affordable properties at the end of their 15-year Low Income Housing Tax Credit compliance period as well as other at-risk affordable rental housing. These properties will be held for a period of time and then sold with the intent of recapitalization with new LIHTCs, thereby extending the contractual affordability period for another 30 years while delivering meaningful risk-adjusted returns to participating investors.