The portfolio consists of Fannie Mae’s investments in 12 funds owning 382 low-income housing tax credits (LIHTC) properties with a total of 31,050 units that provide rental housing for low-income households.
The use of LIHTCs is a key component of Citibank’s community development programs, and the bank has significantly stepped up its purchases of these instruments over the past few years.
Citibank values the opportunity to invest in low-income rental housing and is committed to keeping much-needed capital flowing to these properties, said Andy Ditton, managing director of Citibank community development. Low-income housing tax credit developments are beneficial to communities across the country. They help to expand the stock of affordable housing, accelerate the redevelopment of diverse communities, and enhance the overall economic viability of those communities.
The equity interests sold comprised less than 10% of Fannie Mae’s overall LIHTC portfolio and represented Fannie Mae’s first sale of a LIHTC portfolio of this size. The sale will not affect the properties or the low-income tenants. Additional details of the sale have not been disclosed.
