PNC Bank, N.A recently closed the PNC Affordable Rental Housing Preservation Fund 1, LLC, a $100 million fund to be used to preserve affordable rental housing for families and seniors. The fund is one of the first and largest institutionally-managed funds offered for real estate investors committed to preserving affordable rental housing in the United States.
Through the Low-Income Housing Tax Credit Program (LIHTC) of 1986, low- to moderate-income families and seniors have benefitted from affordable rental housing located in neighborhoods nationwide. As a growing number of tax credit properties reach the end of their 15-year tax credit compliance period, the buildings are showing signs of wear, the existing debt is coming due and the original investors may need to exit the partnership.
The new PNC fund will be used to acquire affordable properties at the end of their LIHTC compliance period as well as other at-risk affordable rental housing. These properties will be held for a period of time and then sold with the intent of recapitalization with new LIHTC, extending the contractual affordability period for another 30 years while delivering financial benefits to participating investors.
“The new fund is an expansion of PNC’s ongoing efforts to ensure affordable housing is available to families around the country through the tax credit capital program. PNC is positioned to recapitalize and preserve the affordability of at-risk projects while providing an attractive risk-adjusted return to our investors,” said Todd Crow, executive vice president and manager of Tax Credit Capital at PNC.
Congratulations The PNC Financial Services Group, Inc.!