LISC Affiliate NEF, Inc. Invests $632 Million in 2005

11 Jan 2006 - Chicago, IL

National Equity Fund Announced that it Funded 112 Projects in 2005 that are Developing 6,800 Units of Affordable Housing

National Equity Fund, Inc. (NEF) closed on a record $632MM in affordable housing investments for 2005, providing equity to 112 low-income housing tax credit projects in 32 states across the country. NEF is one of the nation’s largest syndicators of low-income housing tax credits (LIHTCs), with a portfolio of more than 1,400 projects and 550 developer partners nationwide.

"Our numbers have so many stories behind them," said Joe Hagan, NEF president and CEO. "In addition to family and senior developments, we saw a marked increase in public housing and preservation deals, and we continued our leadership in supportive housing—funding projects that serve the homeless, those with HIV/AIDS and young people, among others. We also expanded our reach into markets where we previously had small portfolios, places like New Mexico, Tennessee, Florida, Kansas, Louisiana and Maine," he said.

"I am so excited about the scope of work we did in 2005. These are some terrific projects that will have a tremendous impact on their residents and their communities," he continued.

Traditionally, NEF has supported the work of nonprofit community development corporations to build affordable housing. While that has continued full-force, in 2005 the company worked extensively with for-profit developers as well, closing some 30 percent of its deals with these partners.

"As a mission-based syndicator, we remain committed to making sure that quality, sustainable, affordable housing contributes to the wholesale revitalization of both urban and rural communities,” Mr. Hagan explained. “There is an array of developers that can help make that a reality, and we have expanded our scope in recent years to finance a wide range of projects that fit our profile."

NEF’s 2005 production represents nearly 15 percent growth for the company, all of it coming from investments in new developments rather than secondary market acquisitions. "Our 2005 activity supports the construction of new affordable housing and preservation of existing properties that might otherwise be lost to decay or transition to market-rate homes. Given the desperately short supply of decent housing for low-income residents in many communities, every one of the 6,800 units we financed last year is important," Mr. Hagan said.

About LISC

LISC combines corporate, government and philanthropic resources to help nonprofit community development corporations revitalize underserved neighborhoods. Since 1980, LISC has raised more than $6 billion to build or rehab nearly 160,000 affordable homes and develop 25 million square feet of retail, community and educational space nationwide.

About NEF

The National Equity Fund (NEF), a subsidiary of LISC, ensures that the private capital attracted to the low-income housing tax credit (LIHTC) makes its way to the communities and nonprofit developers that need it most. Today, NEF is the bridge between institutional investors and affordable housing developers, helping match projects with capital and providing the kind of technical assistance, grants and loans that are needed to complement its project investment activity. Since 1987, NEF has invested $4.4 billion in 68,000 affordable rental apartments nationwide, most of which have been developed by nonprofit community groups.

Article Type: Press Release