Columbia firm to administer housing money

February 18, 1994|By From Staff Reports

A subsidiary of the Columbia-based Enterprise Foundation will manage Chemical Banking Corp.'s $100 million investment to develop affordable, multifamily rental housing in the four states where Chemical operates retail banks.

Nonprofit housing developers are expected to build thousands of affordable homes in low-income areas during the next four years, with equity provided by Chemical's newly created Low Income Housing Fund, the banking company announced yesterday.

The Enterprise Social Investment Corp., an Enterprise Foundation subsidiary, will manage the fund with National Equity Fund, an affiliate of Local Initiatives Support Corp. (LISC), the nation's largest community development support organization.

Chemical committed $50 million to the New York Equity Fund, a joint venture of Enterprise and Local Initiatives. An additional $10 million will go to Enterprise's Corporate Housing Initiative fund, to house the homeless and people with special needs in New York, and $15 million will go to affordable housing in New Jersey, Texas and Florida through the Enterprise Housing Partners Fund. Chemical will invest the remaining $25 million in LISC's National Equity Fund for housing in New Jersey, Texas and Florida.

The federal Low-Income Housing Tax Credit allows Chemical a credit on federal income taxes in exchange for equity investments in affordable rental housing.

Last February, the Enterprise Foundation, founded by James W. Rouse, teamed up with NationsBank, which invested $100 million for affordable rental housing, $9 million of that in Maryland.

The $9 million is part of $34.1 million that Enterprise Social Investment has funneled into the state since 1987 for 31 affordable housing projects for 1,400 families.

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