NeighborWorks Capital and National Equity Fund (NEF) have announced the closing of their inaugural fund, raising $110.4 million to support seven developments across the country.
Set to deliver 517 affordable homes, the projects are spearheaded by high-performing nonprofits within the NeighborWorks America network.
"Developing long-term partnerships is the key to NEF's success, and our extensive history with NeighborWorks organizations is a prime example of that commitment," said Matt Reilein, president and CEO of NEF, a leading nonprofit low-income housing tax credit (LIHTC) syndicator and real estate investment manager. "We set out to intentionally and creatively help these community-driven organizations navigate LIHTC processes and resources with the simple goal of developing more affordable housing for families in need.”
The developments include Weddington Road Apartments in Charlotte, North Carolina, by DreamKey Partners. The development will bring 85 affordable apartments to a transit-connected, rapidly growing corridor.
“Building Weddington Road Apartments in a high-opportunity area in South Charlotte has long been a goal of DreamKey Partners,” said Fred Dodson Jr., chief operating officer and executive vice president of the organization. “Having a financing commitment from NeighborWorks Capital Equity Fund will help DreamKey achieve this goal. We are thrilled to move forward with this new community.”
NeighborWorks Capital Equity Fund received equity investments from Capital One, First Citizens Bank, Northern Trust, Wells Fargo, and Wintrust.
Jim Peffley, CEO of NeighborWorks Capital, noted that nonprofits should lean on each other's unique skill sets and infrastructure to grow our impact in new ways.
"Each year, NeighborWorks organizations are the largest producers of affordable rental housing, by far,” he added. “Last year, their production exceeded that of the top nine for-profit developers combined. With the NeighborWorks Capital Equity Fund, these organizations now have access to equitable and transparent LIHTC terms that were once out of reach, empowering them to advance projects faster, more efficiently, and with long-term impact for the communities they serve. This is only the start of the capital advantage we want to build for these organizations. We want our next fund to reach even more organizations and communities. The residents they serve deserve every possible opportunity to create a better life."
In addition to the developments directly benefiting from the fund, another 19 projects representing more than 1,300 units were placed into other NEF funds that offered unique benefits.