28 MARCH / APRIL 2021 PSP SHOWCASE 2021 Indiana Housing Community Fund New LIHTC equity opportunity Cinnaire Corporation and the Indiana Bankers Association have announced that the 2021 Indiana Housing Community Fund is now open to investment by all C corporations in the state. Over the past 11 years, Cinnaire has partnered with the IBA to create five Low-Income Housing Tax Credit equity funds. These funds totaling $43.5 million were supported by 22 banks to help finance the new construction or rehabilitation of 24 apartment communities, creating 1,883 affordable housing units in cities and small towns across Indiana. The investments resulted in $294 million in economic impact, including the creation and retention of 2,128 jobs. These achievements would not have been possible without the support of Indiana banks. A key benefit from equity investments in these LIHTC funds is that banks receive federal tax credits along with other tax benefits that reduce their federal corporate taxes. Banks also benefit from positive Community Reinvestment Act consideration from regulators and demonstrate to the communities they serve a commitment to expanding access to high-quality affordable housing, a key driver of economic mobility and family stability. Tax credit investing allows banks to do well by doing good, in this case by investing in the communities and the people they serve. The Indiana Housing Community Fund will bring high-quality affordable housing to communities throughout the Hoosier state, while creating jobs and spurring economic development to create positive impact for those who need it most. At a time when one in four households struggle to pay rent, preserving and developing affordable housing is more important than ever. Housing tax credits are the nation’s largest and most successful tool for encouraging private investment in the production and preservation of affordable housing. Over the past 30 years, the program has financed nearly 3 million affordable apartments, providing homes to more than 6.5 million low-income households. The 2021 Indiana Housing Community Fund is open to all Indiana C-corps, with a minimum investment amount of $500,000. Investor equity will be used to support the new construction or rehabilitation costs of identified apartment communities in underserved areas. Cinnaire will asset manage each real estate investment throughout the 15-year LIHTC compliance period. Federal tax credits will become available as each housing community is completed and leased to eligible households, and the housing tax credits will continue each year during the 10-year tax credit delivery period. “In today’s environment, CRA-approved projects that gain tax credits are tremendous opportunities for banks,” said Rod Lasley, executive vice president-operations & member services of IBA. “Cinnaire’s model allows banks of all sizes to invest in projects with the comfort of knowing they will be monitored and managed by an experienced and knowledgeable company. Through the years, Indiana banks and Cinnaire have been a great partnership.” To take part in the 2021 Indiana Housing Community Fund, please contact me at 317-522-5469 or kbroadnax@cinnaire.com. HB Keith Broadnax Cinnaire Corporation Senior Vice President, Business Development kbroadnax@cinnaire.com Cinnaire Corporation is a Preferred Service Provider of the Indiana Bankers Association.
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