On October 1, 2016, Initiative Capital closed a major financing transaction with Community Investment Corporation of the Carolinas (“CICCAR”) that expands resources for new affordable multi-family housing in North and South Carolina. In the $3.8 million transaction, Initiative Capital acquired the permanent mortgages on five apartment complexes, all of which were financed with the federal Low-Income Housing Tax Credit and are affordable to low- and moderate-income people. Together, the complexes provide 304 units of affordable housing to working families and elderly populations.
The transaction provides CICCAR with the liquidity needed to provide new mortgage loans for even more affordable rental housing developments. Thus, this transaction, the third major deal with CICCAR in recent years, will not only keep the existing units affordable, but also will expand access to credit for new development.
We are extremely pleased to have the opportunity to partner with CICCAR again,” said Initiative Capital’s President & CEO, Tara Kenchen. “Together we are helping to ensure that the developers of affordable rental housing can get the long-term, reasonably priced credit that they need to be able to offer safe, high-quality housing to all of our residents.”
Recent reports, including the 2016 State of the Nation’s Housing Report by Harvard’s Joint Center for Housing Studies, indicates that the need for affordable rental housing is particularly acute. More than 21 million households pay more than 30% of their income in rent, and more than 70% of low-income renters pay more than 50% of their income in rent.
“Innovative financing programs like this one can really help make a difference in our collective efforts to expand affordable housing throughout the state, “said Satana DeBerry, Executive Director of the North Carolina Housing Coalition. “We are delighted that our collaborative partner, Initiative Capital, is using its resources to help lead the way in providing the financing needed to preserve and expand affordable rental housing.”