PNC Real Estate has developed an innovative long-term strategy for investment in affordable housing across the U.S. through their Affordable Rental Housing Preservation Funds. The program is backed by a substantial corporate sponsorship position and the ability to provide acquisition financing. The funds will acquire affordable housing properties throughout the U.S. with the intent to preserve and extend long-term affordability utilizing Low Income Housing Tax Credits.
The LIHTC program has generated over 2 million affordable housing units since its inception in 1986. Every year approximately 120,000 units reach the end of their 15 year compliance period, triggering a sale or recapitalization of the asset. Often, as properties are being marketed for sale, market rate and affordable housing buyers compete to acquire the properties. For buyers intent on preserving affordability, purchase offers are often conditioned on obtaining new tax credits, an uncertain execution, and a lack of short term capital to finance the acquisition. As a result many properties are being sold to third party owners/investors with little or no interest in providing affordable housing beyond the statutory affordability period. As these affordability restrictions expire, many property owners intend to replace affordable tenants and raise rents, presumably to market, which results in the loss of affordable rental housing. PNC Real Estate’s Preservation Funds will seek to acquire affordable properties nearing the end of their 15 year compliance period and will “partner” with state allocating agencies and strategic developer partners to redevelop the properties utilizing LIHTC’s.
Affordable Housing Tax Credit Investments Contact: John Nunnery
We have tools to help you bank when and where you want.Mobile Apps Directory »
Be part of our inclusive culture that strives for excellence and rewards talent.Visit PNC Careers »
The PNC Financial Services Group, Inc. All rights reserved.