Warren Buffett has created a new venture to provide financing for low-income housing projects.
Crain's Chicago Business reports that Affordable Housing Partners Inc., a subsidiary of Buffett's Berkshire Hathaway Inc., will invest approximately $5.4 million into a proposed 125-unit St. Anthony Supportive Living Facility in Lansing, Ill. The proposed project will also be financed with $18.6 million in tax-exempt bonds issued, pending approval, by the Illinois Finance Authority.
The new venture is expected to buy federal tax credits designed to encourage investment in low-income housing. Large banks and corporations would then buy the tax credits, and the profits will provide equity to help fund construction.
Michael Fowler, former president Los Angeles-based SunAmerica Affordable Housing Partners Inc., will run the new venture.
