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More Investment Flowing To Affordable Multifamily

WRE News January 28, 2024


More Investment Flowing To Affordable Multifamily

While low income home buyers are still struggling with housing affordability and low housing inventory, multifamily developers are attracting investments that are enabling them to build more apartments.


A 56-unit senior affordable housing development under construction in Montgomery, Alabama, by the Community Action Partnership of North Alabama (CAPNA), with consultation and additional services provided by the Bennett Group, has received an equity investment facilitated by Regions Bank. Freedom Village is under construction on Edgar D. Nixon Avenue near downtown. 

The development is specifically designed to help meet the housing needs of people aged 55 and over. Regions Bank’s Affordable Housing group facilitated the $13.5 million in federal Low-Income Housing Tax Credit (LIHTC) equity with a large institutional investor to support the development. 

“Affordable housing provides hope and opportunity. It’s crucial for the success of any community, and it’s another area where Regions Bank can leverage the financial experience and insights of our teams to make a meaningful difference for others,” said Phillip Mullins, Affordable Housing relationship manager for Regions Bank. “Regions Affordable Housing works closely with developers, community leaders and others to provide funding for developments so more people can have a safe and affordable place to call home. At a time when the senior population continues to grow, Freedom Village provides the foundation needed to help seniors through the next stage of life.”

Since 2016, Regions Affordable Housing has completed six similar transactions with the developer, most recently the Trinity Ridge development, a 56-unit senior housing facility in Phenix City.


Meanwhile, KeyBank Community Development Lending and Investment (CDLI) provided $34.3 million in construction and permanent financing through the HUD 221(d)(4) Mortgage Insurance program to facilitate the substantial rehabilitation of six low-income apartment buildings on the South Shore. The deal is expected to result in 151 units for elderly and disabled residents subsidized under a project -based Section 8 contract. 

The sponsor for the South Shore apartments is Evergreen Real Estate Group (Evergreen), a fully integrated real estate company that develops, acquires, and manages affordable and market-rate multifamily communities across 12 states. The properties are owned by a LIHTC partnership created by the Housing and Human Development Corporation (HHDC), a non-profit public housing facility in Chicago, whose mission is to promote affordable housing and provide services to low-income residents and families.

The project also received LIHTC and tax-exempt bond allocations from Illinois Housing Development Authority (IHDA). KeyBanc Capital Markets served as the sole manager and underwriter for the $55.1 million bonds.

HHDC serves as the owner/operation and will provide on-site social service coordinators (2.5 FTE) to connect residents to a variety of community based social service providers and assist residents in determining eligibility for various government services including health care and health care education, financial literacy and computer literacy, childcare, youth activities, nutritional services, disability services, tenant home ownership training and parenting programs.

Leslie Meyers and Robbie Lynn of KeyBank CDLI structured the HUD 221 (d)(4) financing, and Sam Adams of KeyBanc Capital Markets marketed the bonds.


Much of the development in this news was aimed at affordable multifamily housing for seniors. But investors also have a growing appetite for affordable multifamily for younger renters.

WNC & Associates (WNC), a family-owned nationwide leader in affordable housing, today announced 2023’s results of acquiring more than $2 billion in affordable housing across the United States. The firm says it has preserved more than 6,000 affordable rental units, with this year’s transactions up by 54% over last year.

Founded in 1971, WNC has acquired more than $18.2 billion in assets since inception and now owns 1,825 affordable housing properties and more than 114,000 units nationwide.

It’s not yet clear whether multifamily developers are catching up to pent up demand or overbuilding. What is likely is that many of the people renting apartments might be purchasing single family homes, if they thought they could afford it and could find a home to buy. Despite this, WNC is confident that it will find consumers to rent its new properties.

“Our success, both this year and over our 52-year history as a family-owned business, is the result of the leadership of a team of experienced, highly focused professionals that support each other across business lines,” said Will Cooper, Jr., CEO of WNC. “As a result of our well-positioned teams, we expect continued organic growth in all three of our business lines in 2024 and beyond.”

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