The National Equity Fund, Metropolitan Atlanta Rapid Transit Authority (MARTA), and Morgan Stanley have announced the launch of a $100 million fund in support of efforts to preserve affordable housing near public transit stations in the metro Atlanta region.
To help keep neighborhoods affordable and prevent the displacement of low-income residents, the Greater Atlanta Transit Oriented Affordable Housing Preservation Fund will provide loans to finance the acquisition and recapitalization of affordable housing projects. NEF, an affiliate of the Local Initiatives Support Corporation, will manage the fund, with Morgan Stanley as the sole investor.
The fund will provide capital for the acquisition of multi-family affordable housing developments near or beyond the end of their initial tax credit compliance period, affordable housing properties that operate under HUD Section 8 or other federal programs, and projects with no current rent restrictions that then become restricted upon acquisition. It also will provide high-loan-to-value, non-recourse, first-mortgage debt to help finance the acquisition or repositioning of projects in targeted MARTA transit-oriented districts; help owners restructure existing gap financing or invest in minor capital improvements; and support general partner acquisition of limited partner interests.
"Affordable housing is critical to the well-being of families and communities," said NEF president and CEO Matt Reilein. "We're proud to be part of this important effort to make sure Atlantans can afford to live near public transportation and connect to jobs they might otherwise not be able to access. This fund is about investing in the city's future."
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