A home is at the heart of a community. According to the Joint Center for Housing Studies of Harvard University’s report The State of the Nation’s Housing 2019, more than 38 million households – or a third – of the U.S. population, was burdened by housing costs.
One third. And this was prior to a global pandemic that shook housing stability to its core.
Enacted as part of 1986 Tax Reform, the Low-Income Housing Tax Credit (LIHTC) subsidizes the acquisition, construction and rehabilitation of affordable rental housing for low- and moderate-income tenants. Through the decades, the program has undergone an evolution, growing into the largest contributor to affordable rental housing units in the United States.
Investing in communities is a tenet of Regions Bank, which integrated its Community Investment Capital Group with the acquired First Sterling Financial LIHTC corporate fund syndication and asset management businesses to create Regions Affordable Housing in 2016.
“Affordable housing is one of the most powerful ways our bank can make a difference for people and their opportunities for success,” said David Payne, co-head of Originations, Regions Affordable Housing. “Our team is committed to helping provide institutional capital to affordable housing developers across the nation.”
Regions Affordable Housing has originated $6.9 billion in equity investments in 1,311 assets located in 45 states, D.C. and Puerto Rico and has a 30-year track record, providing billions of dollars of on-balance sheet lending to communities benefiting from LIHTC.
In August, Regions Affordable Housing announced the closing of a new $126 million tax credit equity fund that will help meet the urgent needs for more affordable housing in communities in the Northeast, Southeast and Midwestern regions of the country. Managed by Regions Affordable Housing, the RAH Corporate Partners Fund 57 LLC was created to support 16 affordable housing properties financed through the LIHTC program to provide 1,500 new affordable housing units in Georgia, Tennessee, Texas, North Carolina, South Carolina, New York, Connecticut, Louisiana, Oklahoma and Wisconsin.
National Reach. Local Impact
Outside of the Regions Bank branch footprint, the majority of the Regions Affordable Housing team is based in Great Neck, New York, serving housing developers throughout the continental U.S. This month the team celebrates the completion of Bay Shore Senior Residence, an LGBTQ+ community providing a safe and inclusive environment for Long Island seniors. The 75-apartment complex features a new 8,000-square foot state-of-the art community center owned and operated by the Long Island Gay and Lesbian Youth, Inc. and was developed by The D&F Development Group, LLC.
Affordable housing is one of the most powerful ways our bank can make a difference for people and their opportunities for success.
David Payne, co-head of Originations, Regions Affordable Housing
Another example of Regions’ commitment to the communities it serves is the Motor City development, conveniently located with access to public transportation, commercial properties, pharmacy, and public schools in “Mid City” Baton Rouge, Louisiana. This development, led by Renaissance Neighborhood Development Corporation (RNDC), a collaboration between Volunteers of America Southeast Louisiana and Volunteers of America National Services, includes construction of a four-story, 113,455-square foot residential apartment building that will deliver more than 100 much-needed affordable housing units. The Motor Exchange Building, an existing structure on the property, will be revitalized for a local community center. Common amenities will include an exterior pool deck and swimming pool, mail room, bike storage, community room, leasing office, and fitness center. Construction is scheduled to be completed in late 2022.
“Regions Affordable Housing’s platform is proud to provide comprehensive lending, capital raising, and equity investment solutions to developers nationwide,” said Rob Chiles, head of Regions Affordable Housing. “We see the impact our clients are having across the United States as they seek to create safe and affordable housing for working individuals and their families, and welcome the opportunities to offer the financing that brings their vision to life.”