#United States #Chicago #affordable housing #LIHTC #National Equity Fund

National Equity Fund's Groundbreaking Year

In an impressive display of determination and commitment to affordable housing, the National Equity Fund (NEF) celebrated an outstanding year in 2024, recording a remarkable total of $2.7 billion in investments targeted at creating and preserving affordable homes across the nation. This marks a significant milestone for NEF, as it not only reflects its unwavering mission but also its unyielding approach to addressing the critical issue of housing affordability.

A Record-Breaking Performance

For the first time in its 38-year journey, NEF achieved a staggering $1.8 billion in production under the Low-Income Housing Tax Credit (LIHTC) program. This component alone contributed to NEF's overarching investment total, underpinning the organization's resolve to create sustainable living options for underserved populations. The efforts led to more than 16,000 new affordable homes being created or preserved, a feat that speaks volumes of NEF's potential impact.

Despite the economic challenges that loomed over many sectors in 2024, including inflation and fluctuating interest rates, NEF was able to uphold its strong performance. President and CEO Matthew Reilein highlighted the organization’s reliance on robust relationships, innovative financial products, and the tireless efforts of its dedicated team members in facilitating these investments.

Structured Finance and Workforce Housing

What makes NEF's accomplishments even more impressive is its structured finance segment, which saw nearly $900 million in deals, effectively doubling the results of 2023. This included a noteworthy focus on preserving existing affordable housing stock and expanding workforce housing options for moderate-income earners. Such initiatives play a crucial role in bridging gaps for the 'missing middle' who often find themselves caught in the affordability crisis.

Innovation in Fund Strategies

In line with the growing demands in urban housing markets, NEF implemented a novel 'club fund' strategy, consolidating large deals to collaborate with multiple investors. This strategic shift showcases NEF's adaptability in evolving market conditions and its commitment to sustaining affordable housing solutions. Additionally, the results from the 10th Homestead Equity Fund have been promising, closing with over $1 billion in total equity since its inception in 2009.

The organization has also leveraged state-specific LIHTC credits more than ever, proving that innovative approaches can lead to greater success.

Partnerships Driving Change

NEF's vision is further propelled by partnerships, like the NeighborWorks Capital Equity Fund, which supports over 250 community-based nonprofits by providing equitable LIHTC terms. Such collaborations reflect NEF's commitment to diversity and inclusion by broadening its investor and developer base.

Award-Winning Workplace Culture

Aside from its financial achievements, NEF was recognized for its excellent workplace culture, marking its fourth consecutive year as one of the Best and Brightest Companies to Work For® in Chicago and the United States. This accolade not only celebrates the firm’s dedication to employee development and retention but also reinforces its mission to invest in its workforce.

Looking Ahead

With these outstanding results, NEF enters 2025 with strong momentum. Reilein and his team continue to advocate for policies such as the Affordable Housing Credit Improvement Act (AHCIA), which aims to bolster tax credit availability for affordable housing projects.

In Reilein's words, "National Equity Fund is continuously evolving to address the ever-growing needs of the housing crisis... We are unwavering in our commitment to creating meaningful impact for those who need it most."

Through its steadfast efforts in developing and preserving affordable housing, NEF is not just creating homes, but also empowering individuals and families to realize their full potential. Established in 1987, NEF has invested over $27.2 billion, resulting in nearly 260,000 new or preserved affordable homes across the country, proving that significant change is possible through dedication, collaboration, and innovation.