National Equity Fund, Inc. was founded by the Local Initiatives Support Corporation to be one of the first LIHTC syndicators, following the creation of LIHTC in the Tax Reform Act of 1986. LIHTC provides investors in affordable housing a dollar-for-dollar reduction in federal taxes in exchange for equity in new or refurbished affordable housing projects. Because tax credits are typically awarded to developers, rather than investors, syndicators like National Equity Fund were created to package tax credits in large pools for investors. In 2004, LISC created the New Markets Support Company to replicate NEF’s success using the newly created New Markets Tax Credit Program, which supports business development in low-income areas.
Impact
Since 1987, the Low Income Housing Tax Credit has become the most important resource for creating affordable housing in the United States, responsible for more than three million units of affordable housing. NEF has invested $13.3 billion in 2,494 housing developments, creating 158,907 affordable homes since its founding in 1987. In 2016, NEF invested $947.6M in 88 housing projects. A 2017 study from the Furman Center for Real Estate and Urban Policy at New York University found that LIHTC-supported housing units like those created by NEF revitalize low-income neighborhoods, reduce crime and afford their residents access to better schools than other forms of housing assistance.
Notable projects
Veterans Housing
In 2012 LISC and NEF joined national efforts to end Veteranhomelessness by launching the Bring Them Homes campaign. The campaign has created more than 4,000 residences in 15 states that provide permanent supportive housing for formerly homeless Veterans. Bring Them Homes developments include The Six, a LEED-platinum certified support housing project with 18 units set aside for veterans living in Los Angeles’ Skid Row.
NEF supported the Cedar Crossing affordable housing project developed by Native American Connections in Phoenix, Arizona. Cedar Crossing pioneered transit-accessible affordable housing in Phoenix with a special emphasis on meeting the needs of the Native American Community.
LGBTQ+
As affordable housing developers began creating projects focused on the needs of LGBTQ and LGBTQ seniors, NEF became an early supporter of projects including Town Hall Apartments in Chicago and Evergreen Lofts in Buffalo.
Notable people
Joseph S. Hagan
NEF CEO Joseph Hagan was named to the Affordable Housing Hall Of Fame for pioneering the LIHTC program in 1986 and his leadership of NEF since 2000.
Debbie Burkart
NEF Vice President for Supportive Housing Debbie Burkart was named to Affordable Housing Magazine’s “10 women who are making a difference in Affordable Housing” for her work leading Bring Them Homes, NEF’s Veterans housing initiative.
