The National Equity Fund (NEF) is a national nonprofit Low-Income Housing Tax Credit (LIHTC) syndicator. Founded in 1987 by the Local Initiatives Support Corporation, NEF is not only one of the largest LIHTC syndicators in the country, but one of the first as well, beginning operations less than a year after the introduction of LIHTC in the Tax Reform Act of 1986. According to the NEF website in February 2022, the fund’s investments have totaled $18.3 billion across 2,912 LIHTC developments since its founding, adding 200,480 affordable homes for low-income families and individuals across the country.

Expanding on its strengths and reach within the multifamily industry, the National Equity Fund has cultivated a large organization of professionals covering a spectrum of services, from originations to asset management. The organization also provides, among others, investor relations and disposition services.

In recent years, NEF has extended its efforts into facilitating affordable housing projects for marginalized communities. In 2012, the organization launched the Bring Them Homes campaign for military veterans, and the group also supports affordable housing projects tailored toward Native American and LGBTQ+ communities.

The primary function of tax-credit syndicators is to coordinate the efforts between the parties involved in affordable housing transactions. Syndicators like NEF work with investors to raise capital and identify low-income housing projects to invest that capital in — securing available LIHTCs for its investors in the process.

The cash-on-cash return formula for equity multiple is Net Operating Income (NOI)/Total Cash Investment.

The National Equity Fund finances Low-Income Housing Tax Credit (LIHTC) projects. According to the NEF website, the fund’s investments have totaled $18.3 billion across 2,912 LIHTC developments since its founding, adding 200,480 affordable homes for low-income families and individuals across the country. The organization also provides, among others, investor relations and disposition services. In recent years, NEF has extended its efforts into facilitating affordable housing projects for marginalized communities. In 2012, the organization launched the Bring Them Homes campaign for military veterans, and the group also supports affordable housing projects tailored toward Native American and LGBTQ+ communities.

The National Equity Fund is a national nonprofit Low-Income Housing Tax Credit (LIHTC) syndicator. To be eligible, borrowers must have experience as owner-operators of similar facilities and meet additional financial capacity and credit requirements. If required by a designated State agency, a Certificate of Need must be submitted. For-profit or non-profit, single asset, single-purpose entities are all eligible.

The National Equity Fund provides a variety of benefits for financing, including:

• Access to Low-Income Housing Tax Credits (LIHTC) which provide a dollar-for-dollar reduction in federal taxes for affordable housing investors.
• Coordination of efforts between the parties involved in affordable housing transactions.
• Facilitation of affordable housing projects for marginalized communities, such as military veterans, Native American, and LGBTQ+ communities.

For more information, please visit the National Equity Fund website.

You can apply for financing through the National Equity Fund by submitting a Notice of Funding Availability (NOFA) to the USDA. The NOFA will state the amount of funding available and the areas eligible for the funds. Multifamily Loans can help you through the entire application process from beginning to end. Additionally, the National Equity Fund offers financing through the USDA 538 Multifamily Loan program. To learn more about your multifamily loan options, fill out the form on the Equity Multiple website and speak to a specialist.