Enterprise Community Partners tops $20b in Low-Income Housing Tax Credit investments

Manhattan, NY Enterprise Community Partners (Enterprise) negotiated the closing of Enterprise Housing Partners Funds XLI (EHP 41) and XLII (EHP 42). With combined commitments of $444,470,000 from 19 investors, these Low-Income Housing Tax Credit funds will help create and preserve 3,500 homes for nearly 9,200 households across 30 properties in 16 states. These funds add to more than $20 billion cumulatively invested by Enterprise’s housing credit investment business — one of the largest in the industry — resulting in the creation and preservation of nearly 200,000 affordable homes nationally.

“For nearly 40 years, the Low-Income Housing Tax Credit has been our most effective tool for creating and preserving affordable housing,” said Scott Hoekman, president of Enterprise’s housing credit investment business. “Through EHP 41 and 42 and with the support of our investors, we’re building and protecting critically needed housing across the country, from rural areas threatened by climate change to urban cores struggling with the homelessness crisis.”

EHP 41 and 42 support the development of affordable properties in Arizona, California, Colorado, Florida, Georgia, Illinois, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Ohio, Oregon, Texas, Washington, and Wisconsin. These investments will create more than 5,200 new jobs and bring an estimated $795 million in wages, tax revenue, and business income to the surrounding communities.

Two properties that represent the funds’ broad range of investments are Yosemite Apartments, a rehabilitation of a 32-unit apartment building in San Francisco, and Escalante Meadows, the construction of a new 80-unit apartment building in Guadalupe, California.

Yosemite Apartments, an investment from EHP 41, will undergo its first substantial renovation since the building was constructed in 1924 with the installation of heat pumps, a roof replacement, and accessibility improvements, as well as new floors, doors, appliances, and bathroom fixtures. All the apartments will be affordable to households earning at or below 60% of the area median income (AMI); eight will also have project-based Section 8 subsidies. The Tenderloin Neighborhood Development Corporation, a community-based nonprofit developer in San Francisco, is the project’s sponsor. The rehabilitation is expected to be completed by February 2024.

Escalante Meadows, an investment from EHP 42, will replace an aging 52-unit public housing development in rural Guadalupe, California, with a newly constructed 80-unit apartment building. Seventy-seven units will have rental subsidies, with a portion set aside for specific demographics: 15 for people experiencing homelessness and high health costs, three for veterans, and seven available first to people recovering from disasters like wildfires. Enterprise is also investing $4.1 million in New Markets Tax Credit allocations in the construction of a two-story community center with an early childhood education center and wellness center next door. The Housing Authority of the County of Santa Barbara is the project’s sponsor, and construction is expected to be completed by August 2024.