NEF Acquires Homestead Capital

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Sep 28, 2010, 05:32 ET

CHICAGO, Sept. 28 /PRNewswire/ -- National Equity Fund, Inc. (NEF) has acquired Homestead Capital, an Oregon-based regional syndicator of Low Income Housing Tax Credits (LIHTCs).

NEF, in Chicago, is a national nonprofit LIHTC syndicator that has invested $7.5 billion in affordable housing developments in 45 states, the District of Columbia and Puerto Rico. NEF is an affiliate of the Local Initiatives Support Corporation (LISC), the nation's largest community development support organization.

Homestead Capital, based in Portland, has made $483 million in affordable housing investments across nine states. NEF will integrate Homestead into its existing operation, maintaining its Portland presence as part of NEF's Northwest acquisitions and asset management strategy, according to Joe Hagan, NEF president and CEO.

"This further expands NEF's footprint by continuing Homestead Capital's mission as an affordable housing provider in the region and gives us the chance to work with developers and investors that weren't previously among our partners," Hagan said. "Beyond that, the Homestead portfolio of existing investments is strong, and we are pleased to be able to support its continued performance going forward."

The transaction was fueled, in part, by the recent economic turbulence, which has hit some state and regional syndicators hard. "The market downturn made it increasingly difficult to raise equity and to make deals work," noted Tobias Washington, president of Homestead. "We wanted to protect our investors and our assets -- these are terrific projects that are adding significant value to their communities. We sought out NEF as an acquisitions partner to help make sure that happened."

As NEF's affiliate, Homestead Capital will continue to play a meaningful role as a catalyst for the development of quality affordable housing in the region, agreed Hagan. NEF has been working with Homestead closely since the spring in anticipation of the acquisition, and each of Homestead's investors formalized its approval for the deal. Several Homestead staff members have joined the NEF staff, ensuring a seamless transition, he noted. Washington is leaving the organization, though he will assist with the transition.

About NEF

National Equity Fund, Inc. is a nonprofit Chicago-based affiliate of Local Initiatives Support Corporation (LISC) and one of the nation's largest syndicators of Low-Income Housing Tax Credits, Historic Tax Credits and New Markets Tax Credits. Since 1987, NEF has invested $7.5 billion in nearly 1,800 projects that have built and preserved 109,000 homes affordable to low-income families and individuals. For more information, visit www.nefinc.org or www.lisc.org.

Contact: Colleen Mulcahy, NEF, 312-342-8244 or [email protected]

SOURCE National Equity Fund