WNC Closes $191.7 Million Institutional LIHTC Fund to Build and Rehabilitate 1,873 Affordable Housing Units
WNC has closed WNC Institutional Tax Credit Fund 52 LP (WNC Fund 52). The fund raised $191.7 million in institutional low-income housing tax credit (LIHTC) equity to be used to develop and renovate 1,873 affordable housing units in 16 states.
A total of 10 investors participated in WNC Fund 52, which will develop and renovate units for families and seniors at 24 properties in California, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Mississippi, North Carolina, South Carolina, Nebraska, New Hampshire, Tennessee, Texas, Wisconsin, and West Virginia. A portion of the units will be set aside to help populations including veterans; young adults aging out of the foster care system; homeless, formerly homeless or individuals at-risk of homelessness; as well as residents suffering from mobility, hearing and visual impairments.
“WNC has devoted more than five decades working to provide residents in need with safe, high quality, and affordable housing,” said WNC Executive Vice President of Investor Relations Christine Cormier. “We’re pleased to announce the closing of this fund, which raised significant equity that will be put to use furthering our core mission to alleviate the significant affordable housing crisis within this country.”
WNC Fund 52 also includes 10 new developer partners for WNC. Among the projects within the fund is an adaptive reuse of a college dormitory for mixed tenancy, Transformation Hill, which will provide permanent housing units to 40 young adults aging out of the foster care system.
Additionally, WNC Fund 52 has invested in the development of Knox Residences in Springfield, Massachusetts. Located within the Winchester Square Historic District, the project is the first of a two-phase development located at the former Knox Automobile Company building. Originally constructed in three stages between 1891 through 1910, the Knox Automobile Company manufactured the first gas engine vehicles in the United States and operated as an automobile development, service and storage facility since the early 1900s. The development will convert the northern portion of the Knox Automobile Company into 55 units of family housing.
The properties in WNC Fund 52 will create approximately 3,200 jobs, and the economic impact of the properties are expected to generate more than $490 million in local income tax and other government revenue. Out of the 1,873 units, 47% are located in difficult to develop areas or qualified census tracts. Additionally, 42% are located in majority minority tracts, which have populations comprised of at least 50% minorities.
According to the National Low Income Housing Coalition, the U.S. has a shortage of 6.8 million rental homes affordable and available to extremely low-income renters, whose household incomes are at or below the poverty guideline or 30% of their area median income.