OFN member Low Income Investment Fund (LIIF) has launched a $20 million COVID-19 Low Income Housing Tax Credit (LIHTC) Developer Fee Bridge Initiative to support affordable housing developers grappling with liquidity challenges in the wake of the coronavirus pandemic and ensuing recession. With a guarantee from the Community Investment Guarantee Pool (CIGP), this flexible capital will be available to fill gaps created when fees are stalled in phases of LIHTC development.
The initiative will be available to LIHTC developers who are adversely impacted by COVID-19, providing them with critical liquidity in an uncertain environment. The enterprise-level bridge loans will provide financial support for developers, enabling them to keep balance sheets stable and ensure new affordable housing projects can move forward.
“Prior to the pandemic and recession, we were already grappling with a national housing crisis. We know that affordable housing developers are facing additional challenges in this time, so we need to do all we can to keep affordable housing projects on track,” said Leila Ahmadifar, LIIF’s vice president of national markets. “Thanks to our partnership with CIGP, this initiative will provide critical liquidity to developers to keep their projects moving forward and guarantee pay checks for their employees.”
Learn more on the LIIF website.