About Us

Historically the LIHTC Program has been utilized mostly in metropolitan communities where projects typically have a large number of units. LIHTC is seldom used in rural communities since rental projects in rural areas usually consist of less than 40 units. Since most communities in Central Appalachia are rural, FAHE (Federation of Appalachian Housing Enterprises) identified the LIHTC Programs as underutilized within the region, given the enormous need for affordable rental homes. FAHE saw this as an opportunity to create an equity fund that would would target these underdeveloped markets in Central Appalachia while earning a marketable rate return for investors through tax credits and depreciation, and launched FAHE Capital in 2006. 

FAHE Capital's strength in the marketplace is rooted in the capacity of FAHE and its partners. Successfully launching an equity fund requires expertise in affordable housing, development and asset management. FAHE Capital’s key partners supplement FAHE’s 25 year history of accomplishment in these areas, reinforcing our competitive advantages in establishing the only equity funds targeting Central Appalachia.

Through FAHE’s provision of financial services, technical assistance, training and collaboration Members have provided safe, decent, affordable housing for more than 40,000 families in the past 26 years. Our Members participate in a full spectrum of affordable housing activities, from building homeless shelters to developing rental housing, to counseling families and homeownership lending. All of our Members have years of experience in serving low-income families, elderly and disable residents with fixed incomes and other special needs populations.

Typically the lack of local development capacity is an obstacle to using the LIHTC Program in rural communities. With FAHE’s network of experienced development partners FAHE Capital has a distinct advantage in delivering projects on time and on budget. Members’ intimate knowledge of the local housing needs means projects are developed to meet specific demands and are occupied quickly.

Virginia Community Development Corporation (VCDC) is a catalyst organization that has successfully launched 14 tax-credit equity funds and assisted in the development of nearly 100 properties throughout Virginia with technical assistance and equity investments. By balancing the interests of its partners, VCDC delivers an above-market rate of return on investment as well as worthwhile affordable housing and historic renovation projects—resulting in changed lives and thriving communities. VCDC brings its wealth of programmatic knowledge to supplement FAHE’s strong network of Members and intermediary background to a joint-partnership in the Housing Equity Fund of Kentucky I and II.