Enterprise Community Partners (Enterprise) announced today the final closings of Enterprise Housing Partners Funds XXXIX (EHP 39) and XL (EHP 40). With combined commitments of $501.5 million from 19 investors, these Low-Income Housing Tax Credit (Housing Credit) funds will help create or preserve 3,203 affordable rental homes across 33 properties in 18 states and the US Virgin Islands.
Initially offered in 2022, the funds contributed to a record year for Enterprise, with $1.7 billion invested in Housing Credit equity to create or preserve 8,900 homes for more than 23,000 households. Across its full suite of fixed-income, equity and housing credit products, Enterprise invested $10.2 billion in 2022.
“As we work towards solutions to our ongoing affordability crisis, the Low-Income Housing Tax Credit continues to be our most effective tool for creating and preserving affordable housing across the country,” said Scott Hoekman, president of Enterprise’s housing credit investments business. “With the support of our investors, we can invest in critically needed affordable homes in communities nationwide.”
The affordable developments funded by EHP 39 and 40 are located in Alaska; Arizona; California; Colorado; Florida; Illinois; Maryland; Michigan; Minnesota; Missouri; New York; North Carolina; Ohio; Oregon; Pennsylvania; Utah; Virginia; Washington; and the Virgin Islands. The funds will also create close to 5,000 new jobs and bring an estimated $717 million in wages, business income and tax revenue to the communities in which the funds invest. The funds’ investors include regional and national banks.
Two developments that exemplify the funds’ wide range of investments are NP & Eastern, a 109-home restoration of two historic hotels in Seattle, Washington, and Cleveland Scholar House, 40 new homes for parents pursuing higher education and their children in Cleveland, Ohio.
The NP & Eastern project will renovate two historic mid-rise hotels into a mix of single-room occupancy, studios and one-, two- and four-bedroom apartments, along with two staff units. All the apartments will serve residents who earn between 30% and 50% of the area median income (AMI). The renovation of the two hotels, both Seattle historic landmarks, will modernize mechanical, electric and plumbing systems, enhance safety features, replace residential interiors and add green features that will cut energy consumption. Interim Community Development Association, a BIPOC-led developer that works primarily with low-income Asian and Pacific Islander residents, is the project’s sponsor. The renovation is expected to be completed by December 2023.
Cleveland Scholar House involves the new construction of a three-story building that will provide 33 two-bedroom and 7 three-bedroom apartments. All homes will have project-based rent subsidies through the Cuyahoga Metropolitan Housing Authority and will be targeted toward families earning between 30% and 50% of the AMI. The new development, located within walking distance of Cuyahoga Community College and Cleveland State University, will provide wrap-around services for adult college students and their children, including on-site daycare, study space, a computer lab and multiple common areas for family education and activities. CHN Housing Partners is the developer, and construction is expected to be completed by October 2023.
