Fannie Mae announced that it has committed to 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. Fannie Mae has committed 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 of the United States has declared to have experienced a major disaster or emergency and, thus, are entitled to disaster relief support through the Federal Emergency Management Agency (FEMA) 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, 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 (FHFA) approved Fannie Mae’s re-entry into the LIHTC market as an equity investor in November 2017. Fannie Mae’s return to the LIHTC market expands the company’s efforts to increase and improve affordable housing stock and help those markets most in need of support.
The DAHR Fund will provide capital to support the construction and rehabilitation of affordable and mixed-income housing to alleviate the impact of major disasters or emergencies to households and employers, and to assist in stimulating general economic activity in disaster impacted areas. The fund also will support, when possible, hazard mitigation initiatives in the design of affordable and mixed-income housing.
Additionally, tenants in disaster impacted areas will be able to get services through Fannie Mae’s Disaster Response NetworkTM to help manage FEMA and insurance claims and relocate to temporary housing, as well as find state and federal disaster housing assistance.
Since 2018, Fannie Mae has committed over $1 billion to LIHTC investments through a diverse group of funds in high-needs areas, including rural and Native American locations. Fannie Mae also has supported a range of projects for formerly homeless families and individuals and other targeted populations, as well as mixed-income tax exempt bond transactions. Its LIHTC investments have helped fund the construction of new properties and the rehabilitation and preservation of existing housing.
For more information, please visit the Fannie Mae LIHTC program website.