Centerline Capital Group Closes Two Low-income Housing Tax-credit Funds for $70MM to Finance Production and Preservation of 615 Units
NEW YORK, May 20, 2009 (BUSINESS WIRE) -- Centerline Capital Group ("Centerline" or the "Company"), a subsidiary of Centerline Holding Company (CLNH) and a provider of real estate financial and asset management services, today announced it closed two proprietary low-income housing tax-credit (LIHTC) funds to raise approximately $70 million of gross equity.
The equity proceeds are intended to finance the production or preservation of eight affordable multifamily housing developments, containing 615 units of affordable housing. Centerline's affordable housing transaction team led by Andrew J. Weil, Executive Managing Director of the Affordable Housing Group, acknowledges the capital markets have been constrained for well over a year, and raising money in the current environment, especially in the tax credit arena, has been difficult.
"Raising two new investment funds speaks to investor confidence in Centerline's ability to raise capital and find opportunities that still exist in the tax-credit housing market," said Mr. Weil. The eight properties designated to receive equity proceeds from the two investment funds include four located in Southern California, one near Philadelphia, one on the Gulf Coast, one in central Pennsylvania, and one in Virginia. All five geographic regions where the properties are located exhibit stresses in their single-family housing markets, where, as foreclosures increase, the need for adequate affordable multifamily housing increases.
The LIHTC Program was created as part of the Tax Reform Act of 1986 and is widely considered one of the most successful housing programs ever established, creating over 2 million affordable housing units since its inception. Part of its success is based on its public-private partnership between investors who gain tax benefits from investing in low-income housing and the state agencies that allocate the tax credits. Since inception of the LIHTC Program, Centerline-sponsored LIHTC funds have raised more than $9.8 billion of gross equity from third-party investors to support production of affordable multifamily housing.
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