National Equity Fund Raises More Than $1 Billion through Trailblazing Homestead Equity Fund

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Sep 17, 2024, 09:00 ET

The fund represents a continued commitment to affordable housing in the Western region of the United States.

CHICAGO, Sept. 17, 2024 /PRNewswire/ -- National Equity Fund (NEF), a leading nonprofit multi-family, affordable, real estate investment manager, announced that it has raised over $1 billion through the Homestead Equity Fund. NEF first took over the Homestead Equity Fund (HEF) in 2010 when the organization acquired Homestead Capital, a regional low-income housing tax credit (LIHTC) syndicator formerly based in Portland, Oregon. Since the acquisition, NEF has closed ten Homestead Equity Funds resulting in $1 billion total in equity, with the latest, Homestead Equity Fund XIX, closing this summer with $222 million.

NEF's Homestead Equity Fund by the Numbers

"In 2010, National Equity Fund made a commitment to strategically invest in a region that had been hit hard by the 2008 financial crisis," says Mark Siranovic, senior vice president, capital markets at NEF. "By integrating the Homestead Funds into our existing operation, NEF was able to establish a presence out west while creating new relationships with developers, investors and prominent community figures. These relationships have resulted in a continued push for affordable housing in a region in desperate need."

Since acquiring Homestead Capital, NEF has worked with developers and investors to complete ten funds, which have helped create 150 developments, resulting in nearly 8,000 units of affordable housing across 14 states.

"During the financial crisis of 2008-2009, many organizations, including regional syndicators, were struggling to stay afloat," says Matt Reilein, president and CEO at NEF. "In 2010, our former president and CEO made a promise to the Homestead Capital board, staff and overarching community to continue investing in the northwestern region to expand the creation and preservation of affordable housing. Nearly fifteen years later, through industry hardships, economic headwinds and financial uncertainty, NEF is proud to shine a light on this steadfast commitment to a region that emphasizes the importance of supporting and uplifting our partners and their communities."

In 2013, the first fund under the NEF banner, HEF X, closed with $25.6 million in equity. At the time, the closing of this fund represented an innovative way to expand affordable housing in a region that experienced consistent population growth. While many within the region showed concern that a Chicago-based nonprofit would influence the decision-making and financing of western developments, NEF quickly ensured that its presence would be felt through supportive, hands-on collaboration. Today, the NEF Portland office is the second largest employee base of the organization.

"The acquisition of Homestead Capital pushed NEF to think both strategically and compassionately about how we can commit to and invest in regions," says Lisa Decker, managing director - investor relations at NEF. "NEF's ongoing and unwavering support has allowed for the expansion of new developer, investor, and personnel relationships, resulting in trailblazing, tailored solutions for regional issues."

The success of the Homestead Equity Fund mirrors many recent innovative and collaborative wins for NEF in the LIHTC space including its commitment to provide capital access for developers of color, the recent closing of the inaugural Northeast Fund, and the announcement of the NeighborWorks Capital Equity Fund, a first-of-its-kind equity fund that provides high-performing community-based nonprofits with a set of standardized, equitable LIHTC terms. Additionally, the organization has found success in expanding its capabilities, seeing strong results for preservation lending and workforce housing investments.

About National Equity Fund, Inc. (NEF)

National Equity Fund, Inc. is a leading nonprofit Low-Income Housing Tax Credit (LIHTC) syndicator, lender, and equity investor in multi-family affordable housing, with a mission to create and deliver innovative, collaborative financial solutions to expand the creation and preservation of affordable housing. Through its multiple lending and investing platforms, NEF generates opportunities rooted in its vision that all individuals and families across the country have access to stable, safe, and affordable homes that provide a foundation for them to reach their full potential. Since being founded in 1987, NEF has invested over $22.7 billion, representing 231,500 new affordable homes for individuals, families, and communities in need across the country. NEF is Chicago-based and has donated more than $225 million in grants to support its affiliate LISC's nationwide community development work. To learn more about NEF's impact, innovative financial solutions, and opportunities, visit www.nefinc.org.

SOURCE National Equity Fund