Cinnaire has locked in a fresh chunk of cash for the Midwest, closing a $134 million Low-Income Housing Tax Credit fund that will fuel a dozen affordable housing developments across five states. The new vehicle, dubbed Cinnaire Fund for Housing 44, is expected to create or preserve roughly 950 homes for families, seniors and people with special needs, stretching from Madison, Wis., to Traverse City, Mich., and Rochester, Ind.
According to a press release via Cinnaire, Fund 44 will back 12 developments in five states and is projected to serve more than 2,185 people while generating local economic activity. Roughly 90 percent of the fund's investments are with repeat developer partners, and capital is slated for both new-construction and acquisition-rehabilitation projects.
Where the money will land
Industry coverage highlights several standout projects, including Element Collective in Madison, which will bring 197 affordable homes to market; East Bay Flats in Traverse City, an acquisition-rehab of 64 units; and Chamberlain House in Rochester, Ind., a 40-unit new-construction development, as reported by Connect CRE. Collectively, those projects span family housing, units reserved for people with special needs and, in some locations, on-site supportive services connected to local providers.
How Fund 44 fits Cinnaire's work
Fund 44 follows on the heels of Cinnaire's much larger Fund 43, which closed last year at roughly $340 million and financed dozens of properties across 11 states. That earlier fund was framed in coverage as a milestone for the syndicator, while Fund 44 appears more tightly focused on specific communities in the Midwest and nearby states, according to REBusinessOnline.
What advocates and partners say
“Through these investments, we'll be able to help communities meet urgent housing needs while also supporting job creation, economic activity, and long-term neighborhood stability,” Josh Ghena, President of Cinnaire Equity Partners, said in Cinnaire's announcement. The firm cast the closing as another example of how the Low-Income Housing Tax Credit program can be converted into both real homes and local economic gains.
With Fund 44 closed, Cinnaire says it has now raised nearly $5.7 billion in LIHTC equity and leveraged more than $12 billion in total community investment. Coverage notes that track record as a reminder that private tax-credit equity remains a major engine for affordable housing development. Local developers and municipal officials in the affected towns will be watching the pipeline as projects move through permitting and construction, especially given persistent shortages of affordable units in many Midwestern communities.
