This panel will explore options to finance affordable housing and other high-impact real estate projects through Community Reinvestment Act (CRA)-motivated bank-backed private equity investment funds. In today’s difficult real estate market, developing affordable and workforce housing that is financially feasible can be challenging, even with government incentives. Though an important governmental resource for affordable housing development, LIHTC has its limitations – including demand for the tax credits outstripping supply in high-need markets, developments being delayed by state allocation timelines, and inflexible affordability requirements that don’t meet the broad spectrum of need for affordable housing at different income levels.
The AIC CEI-Boulos Opportunity Fund is a bank-backed private equity fund that has assembled an impressive portfolio of non-LIHTC affordable housing projects around the country. Through the lens of the experience of the fund, and by hearing from the sponsors of the fund’s portfolio projects, this panel will explore how CRA-motivated private equity investment from banks can be used to fill the capital gap in a diverse range of projects from new construction to adaptive reuse, for affordable housing, and other high-impact projects.
The panel will discuss how affordable housing projects can qualify as eligible CRA investments. Speakers will also provide insights on how local, state, and federal financial resources, such as property tax exemptions, grants, low-interest loans, vouchers, assorted tax credits, and other resources can be assembled into capital stacks to develop high-impact affordable housing projects that represent win-win-wins for bank investors, developers, and communities.
The AIC CEI-Boulos Opportunity Fund is a joint venture partnership with Allivate Impact Capital®, a subsidiary of Woodforest Financial Group, and CEI-Boulos Capital Management. The multi-investor fund is focused on high-impact, financially attractive, community development real estate projects throughout the country.
