National Equity Fund (NEF), a prominent nonprofit organization specializing in multi-family, affordable real estate investments, has announced a major achievement: the successful raising of over $1 billion through its Homestead Equity Fund. This accomplishment signifies a powerful testament to NEF’s ongoing commitment to creating and preserving affordable housing options within the Western region of the United States.
NEF initially took ownership of the Homestead Equity Fund (HEF) back in 2010 when it acquired Homestead Capital, a regional low-income housing tax credit (LIHTC) syndicator previously headquartered in Portland, Oregon. Since then, NEF has diligently closed ten Homestead Equity Funds, culminating in a total of $1 billion in equity raised. The most recent fund, Homestead Equity Fund XIX, successfully closed this past summer with a remarkable $222 million in equity.
“In 2010, National Equity Fund made a strategic decision to invest significantly in a region that had faced significant challenges due to the 2008 financial crisis,” explains Mark Siranovic, senior vice president of capital markets at NEF. “By incorporating the Homestead Funds into our existing operations, NEF effectively established a presence in the Western region while forging new relationships with developers, investors, and influential community leaders. These partnerships have fueled a sustained push for affordable housing in a region facing a critical need.”
Since acquiring Homestead Capital, NEF has collaborated closely with developers and investors to bring ten funds to fruition. These funds have played a pivotal role in the creation of 150 developments, generating nearly 8,000 units of affordable housing across 14 states.
“During the financial crisis of 2008-2009, numerous organizations, including regional syndicators, faced immense challenges to stay afloat,” explains Matt Reilein, president and CEO of NEF. “In 2010, our former president and CEO made a solemn promise to the Homestead Capital board, staff, and the wider community to continue investing in the northwestern region, expanding the creation and preservation of affordable housing. Nearly fifteen years later, despite industry hurdles, economic headwinds, and financial uncertainties, NEF stands proud to highlight this unwavering commitment to a region that emphasizes the importance of supporting and uplifting our partners and their communities.”
The first fund under the NEF banner, HEF X, closed in 2013 with $25.6 million in equity. This closing was an innovative step towards expanding affordable housing in a region witnessing consistent population growth. Although concerns arose within the region about a Chicago-based nonprofit’s potential influence on Western development decisions and financing, NEF quickly dispelled these doubts by demonstrating its commitment through supportive, hands-on collaboration. Today, NEF’s Portland office is the second largest employee base for the organization.
“The acquisition of Homestead Capital prompted NEF to approach this challenge with strategic thinking and compassion, determining how we could effectively commit to and invest in specific regions,” says Lisa Decker, managing director of investor relations at NEF. “NEF’s unwavering and ongoing support has paved the way for the expansion of new developer, investor, and personnel relationships, leading to trailblazing, tailored solutions for regional issues.”
The success of the Homestead Equity Fund mirrors numerous recent innovative and collaborative victories for NEF within the LIHTC space. These achievements include NEF’s dedication to providing capital access for developers of color, the recent closure of the inaugural Northeast Fund, and the announcement of the NeighborWorks Capital Equity Fund – a pioneering equity fund that equips high-performing community-based nonprofits with a standardized, equitable set of LIHTC terms. NEF has also excelled in expanding its capabilities, demonstrating strong results for preservation lending and workforce housing investments.
About National Equity Fund, Inc. (NEF)
National Equity Fund, Inc. is a leading nonprofit Low-Income Housing Tax Credit (LIHTC) syndicator, lender, and equity investor in multi-family affordable housing, driven by a mission to create and deliver innovative, collaborative financial solutions to expand the creation and preservation of affordable housing. Through its multifaceted lending and investing platforms, NEF generates opportunities rooted in its vision that all individuals and families nationwide have access to secure, stable, and affordable homes, providing a foundation for them to reach their full potential. Since its inception in 1987, NEF has invested over $22.7 billion, representing 231,500 newly built affordable homes for individuals, families, and communities in need across the country. NEF is headquartered in Chicago and has generously donated over $225 million in grants to support its affiliate LISC’s nationwide community development efforts. To delve deeper into NEF’s impact, innovative financial solutions, and opportunities, please visit www.nefinc.org.
