Fannie Mae says it will invest up to $50 million in a low-income housing tax credit (LIHTC) fund that will support properties in disaster-stricken areas.
The investment is part of Fannie Mae’s ongoing commitment to affordable rental housing in underserved markets: over $1 billion to LIHTC investments since 2018.
Fannie Mae will partner with Boston Capital to invest in the Disaster Area Housing Recovery (DAHR) Fund I. The DAHR Fund will target proprietary investments in LIHTC properties located in areas that the president has declared to have experienced a major disaster or emergency and, thus, are entitled to disaster relief support through the Federal Emergency Management Agency and other agencies.
“Disaster relief calls for many different considerations, and the repair and reconstruction of housing for our most vulnerable communities is just one way we can support underserved markets in America,” says Dana Brown, vice president, LIHTC investments, for Fannie Mae. “This fund allows us to channel much-needed capital to communities that have experienced a major disaster or an emergency.”
The Federal Housing Finance Agency approved Fannie Mae’s re-entry into the LIHTC market as an equity investor in November 2017.
The DAHR Fund provides capital to support the construction and rehabilitation of affordable and mixed-income housing to alleviate the impact of major disasters or emergencies.