Housing Equity Funds

The Housing Equity Funds (HEF) provide investment opportunities to financial institutions and corporations to earn competitive market rates of return while increasing their communities supply of affordable rental housing in Kentucky and Tennessee. The HEF invest in properties that receive federal Low-Income Housing Tax Credits (LIHTC). HEF funds achieve competitive rates of return and risk diversification by pooling equity from multiple investors into a fund that in turn investing in multiple properties.

Why Invest in Tax Credit Financed Properties?

• Tax Benefits
• CRA Benefits
• Bridge loan participation for financial institutions
• Giving back to the community

Our team of seasoned professionals ensures the viability of your investment through proactive asset management to mitigate long term risks. We offer extensive services throughout the entire compliance period required by the LIHTC program. These services including:

• Identifying properties with clear needs for the housing
• Conservative underwriting of prospective properties
• Active monitoring of properties through the construction phase
• Detailed review of the applicant pool during the of lease-up
• Planned and unannounced on-site inspection during construction
• Proactive asset management once operational
  o Quarterly review of property financial statements
  o Annual inspections of the property
  o Section 42 compliance oversight
  o Audits and tax returns

The Federation of Appalachian Housing Enterprises (FAHE) and Virginia Community Development Corporation (VCDC) created our first fund in 2006 as a joint venture. Since then we have raised more than $25.75 million in private capital for investment in 8 properties with 282 rental units in eleven communities across the commonwealth. All of our funds are currently meeting or exceeding their projected rates of return.

For more information about investment opportunities, please contact:

Sara Morgan                                 Dan Tatar
FAHE Capital Director                    Virginia Community Development Corp.
859-986-2321 ext. 2134                804-343-1200 ext. 125
sara@fahe.org                              dtatar@vcdc.org