Portfolio Partner Profile
Fund to Preserve Affordable Communities (FPAC) II
The Fund to Preserve Affordable Communities II (“FPAC 2”), launched by the Low Income Investment Fund and the National Affordable Housing Trust (NAHT), is the second phase of the $100 million Fund to Preserve Affordable Communities (FPAC), which seeks to protect affordable housing for low income families across the nation. FPAC 2 will make flexible financing available to non-profit developers, enabling them to acquire, stabilize, and preserve affordable housing.
The US’s existing stock of affordable housing is rapidly declining and FPAC’s goal is to provide non-profit developers the capital necessary to acquire properties that are at risk of converting to market rate housing. FPAC’s capital will allow developers the time to refinance the properties in order to preserve their affordability while leveraging subsidies (e.g. LIHTC) in order to renovate/improve them as well.
Furthermore, the fund aims to facilitate the preservation and recapitalization of existing affordable multifamily housing, thereby encouraging long term stewardship and attentive ownership. FPAC 2 also seeks to make strategic physical improvements and renovations to the properties that will benefit both the owners and tenants.
Financing from FPAC 2 will be available to Stewards of Affordable Housing for the Future (SAHF) members. SAHF’s mission is to advance the creation and preservation of healthy, sustainable affordable rental homes that foster equity, opportunity, and wellness for people of limited economic resources. SAHF’s membership is composed of 13 leading non-profit affordable housing developers/managers that currently manage over 140,000 units of housing.
FPAC 2 investors include The Low Income Investment Fund (LIIF), National Affordable Housing Trust (NAHT), Mercy Loan Fund and Calvert Impact Capital.
Featured Impact Story
The Villages at East River
The Villages at East River is a 202-unit scattered-site property with 16 buildings located in Wards 7 and 8 of Southeast Washington, D.C. that was acquired by an affiliate of NHT Communities in 2017.
The Project addresses the need for substantial rehabilitation of smaller apartment buildings that are scattered throughout Ward 7 and Ward 8 in Southeast Washington, D.C. The area has the highest concentration of poverty and the highest concentration of Black residents of any area in the city, and it has the most subsidized and naturally occurring affordable housing of any area in the city.
High housing costs in other areas of the city and region bind low-income residents to the area and its stock of affordable rental properties. The Project will address the need to improve the housing stock and the physical environment in several neighborhoods, while increasing the number of affordable rental units and the number of units targeted to extremely low-income households at or below 30% AMI, by achieving the following:
• Improve housing quality through comprehensive rehabilitation and modernization of 202 units of affordable housing in smaller properties that are often overlooked because they are difficult to finance ($160,000/unit in hard costs);
• Increase the supply of affordable rental housing by returning more than 60 vacant/off-line units to the area’s inventory;
• Increase low-income targeting restrictions to include 41 Permanent Supportive Housing Units targeted to households at or below 30% AMI, who will be assisted with rent subsidies and other city-funded supportive services;
• Reduce environmental hazards by remediating asbestos-containing materials and removing or encapsulating surfaces/objects that potentially contain lead-based paint.