CHICAGO, April 16, 2024 /PRNewswire/ -- NeighborWorks Capital, a national non-profit Community Development Financial Institution (CDFI), has partnered with National Equity Fund (NEF), a leading non-profit multi-family, affordable, real estate investment manager, to launch the NeighborWorks Capital Equity Fund. This first-of-its-kind equity fund will provide high-performing community-based non-profit organizations with a set of standardized, equitable Low-Income Housing Tax Credit (LIHTC) terms. The creation of this fund stems from NeighborWorks Capital's desire to provide NeighborWorks network organizations with access to equitable, consistent capital and NEF's aligned mission
The creation of this fund stems from NeighborWorks Capital's desire to provide NeighborWorks network organizations with access to equitable, consistent capital and NEF's aligned mission
"The idea to create a LIHTC fund for NeighborWorks organizations came from my time leading a syndication business," said Jim Peffley, CEO of NeighborWorks Capital. "The capital marketplace is not always equitable, and that is certainly true for the LIHTC market. Because syndicators and investors need to secure large numbers of transactions in a competitive environment, they often prioritize large developers. Large developers with a significant pipeline have more leverage with investors, and as a result, they often demand and receive better terms. I saw this happen year after year. Most non-profit developers do not have the scale to have that market leverage, and as a result, they often do not receive the best available terms."
"
"The idea to create a LIHTC fund for NeighborWorks organizations came from my time leading a syndication business," said Jim Peffley, CEO of NeighborWorks Capital. "The capital marketplace is not always equitable, and that is certainly true for the LIHTC market. Because syndicators and investors need to secure large numbers of transactions in a competitive environment, they often prioritize large developers. Large developers with a significant pipeline have more leverage with investors, and as a result, they often demand and receive better terms. I saw this happen year after year. Most non-profit developers do not have the scale to have that market leverage, and as a result, they often do not receive the best available terms
Most non-profit developers do not have the scale to have that market leverage, and as a result, they often do not receive the best available terms
While the fund is a new option for in-network organizations, NEF is not a new partner to NeighborWorks America, having worked with 76 NeighborWorks members to deploy more than $2 billion in equity for the creation of nearly 350 developments across the country, which resulted in approximately 20,000 units of affordable housing. Now, organizations within the network will receive consistent terms for LIHTC developments, including NEF's favorable exit terms that preserve affordability and protect against potential challenges in retaining their development at the end of the compliance period
Now, organizations within the network will receive consistent terms for LIHTC developments, including NEF's favorable exit terms that preserve affordability and protect against potential challenges in retaining their development at the end of the compliance period

Source prnewswire