Morgan Stanley Invests in Affordable Housing
By Caitlin Jones
2 min read
Tax Credit Advisor, February 2010: On January 19, global financial services firm Morgan Stanley announced that it has committed $110 million to promote community development by financing construction of affordable rental housing in low-income neighborhoods nationwide.
In partnership with syndicator National Equity Fund, Inc. (NEF), Morgan Stanley is capitalizing a $50 million low-income housing tax credit (LIHTC) investment fund and providing $60 million to finance several hundred million dollars of additional NEF housing fund investments. Altogether, Morgan Stanley’s $110 million commitment is expected to support 3,300 homes for low-income families, seniors, and special needs residents and help create 6,500 jobs in hard-hit communities.
Morgan Stanley’s commitment is absolutely critical in this financial environment,” said NEF President and CEO Joseph Hagan. “Communities that literally have been starved for LIHTC equity over the last year and seen no new affordable housing activity will be able to move some of their projects forward,” he said. “That’s huge.”
“Morgan Stanley is committed to partnering with communities to enable them to attract capital for community development goals,” said Audrey Choi, Managing Director and Head of Morgan Stanley’s Environment, Social Finance and Community Reinvestment Group. “We are pleased to work with NEFÉ”¦on this project helping address the critical lack of funding for affordable housing in underserved communities.”
Said Hagan, “Every dollar of new equity that comes into this market is crucial to advancing local affordable housing goals, especially given the number of families facing severe housing issues.”
Morgan Stanley’s investment will also leverage federal Tax Credit Assistance Program (TCAP) and Section 1602 exchange program funds received by many of the projects.
