NeighborWorks Capital Equity Fund

NeighborWorks Capital Equity Fund

Administrator: NeighborWorks Capital (national non-profit Community Development Financial Institution - CDFI), in partnership with National Equity Fund (NEF)

Program Type: Equity investment fund for Low-Income Housing Tax Credit (LIHTC) deals

Overview

The NeighborWorks Capital Equity Fund is a first-of-its-kind equity fund that provides NeighborWorks America network organizations with standardized, equitable Low-Income Housing Tax Credit (LIHTC) terms. The fund was created to provide high-performing community-based nonprofit organizations with access to equitable, consistent capital with NEF's aligned mission.

Geographic Scope

National (all states)

Target Beneficiaries

Eligible Organizations:
• NeighborWorks America network members only
• Community-based nonprofit organizations
• High-performing nonprofit developers

Fund Benefits

For NeighborWorks network members, the fund provides:
• Efficient access to pre-negotiated investment agreements offering best available terms
• Economies of scale and ease of execution
• Protections against abuse, including assurances regarding exit terms at the end of compliance period (Year 15) and prohibited actor language
• Transparency on fee/load at the fund level
• A platform through which NeighborWorks organizations can grow the benefits of the fund over time

Focus Areas

• Low-Income Housing Tax Credit (LIHTC) development
• Affordable housing expansion
• Support for underrepresented developers
• Equitable wealth-building for mission-driven nonprofit developers

Impact Context

The NeighborWorks Network of developers collectively produces more multi-family units across the country than the top five (5) affordable housing developers in the industry combined (as reported by Affordable Housing Finance in 2022). The fund aims to open pathways to underrepresented developers so they can be successful in the field and build wealth for themselves and their communities.

Example Projects Funded

• Eastman Reserve, Rochester, NY (PathStone)
• Landmark Place, Kingston, NY (RUPCO)
• Trellis @ Mission, Phoenix, AZ (Mission Housing, LLC)
• Palm Terrace I, Lindsay, CA (Self Help Enterprises)

Key Contacts

Liz Hibbard, Senior Vice President, Innovation and Strategic Growth at NEF
• Email through: nefinc.org

Jim Peffley, CEO of NeighborWorks Capital

Email through: nefinc.org

General Contact:

Phone: 312-360-0400

Website: nefinc.org