Low Income Investment Fund Offers $50M to Acquire, Preserve Affordable Properties in Southeast

The Low Income Investment Fund has launched its Keeping Homes Affordable program, a $50-million fund that provides acquisition financing for nonprofit and mission-minded for-profit developers to acquire and preserve affordable multifamily projects in the Southeast.

The program was developed in partnership with Calvert Impact and Arnold Ventures.

The program will allow mission-based owners of affordable residential buildings options to position at-risk properties for long-term recapitalization and preservation. The fund offers flexible lending terms to help developers compete with private market-rate buyers, offering developers five-year, below market interest rates, and up to 100% Loan-to-Value.

LIIF has committed $15 million in capital for the program, with Calvert Impact Partners providing $35 million and Arnold Ventures $5 million in top loss capital. As the originating lender, servicer and asset manager for the fund, LIIF will originate all loans within the program.

“We see the creation of the fund as a critical step in enabling developers to maintain affordable units in their housing stock and increase the supply of these units,” said Kimberly Latimer-Nelligan, LIIF president. Now is the time to act to prevent a worsening of the housing crisis.”