Foundation for Innovation: MacArthur Supports New Enhanced LIHTC Preservation Fund
By Caitlin Jones
1 min read
Tax Credit Advisor, February 2011: The John D. and Catherine T. MacArthur Foundation has seeded a new “enhanced” low-income housing tax credit (LIHTC) fund providing added protection to investors against any cut-off of HUD Section 8 rent subsidies to financed projects.
The fund has two classes of investors with different yields and changing benefit ratios.
The Foundation is providing a $20 million guarantee in connection with the fund, which aims to provide $100 million to nonprofit developers to help finance the preservation and renovation of approximately 20 project-based Section 8 LIHTC properties nationwide serving more than 2,000 low-income residents.
The tax credits are being syndicated and the fund co-managed by the National Affordable Housing Trust, a nonprofit syndicator based in Columbus, Ohio, and Cornerstone Real Estate Advisors, LLC, a unit of Massachusetts Mutual Life Insurance Company (Mass Mutual).
