ST. LOUIS, MO - U.S. Bancorp Community Development Corporation (USBCDC), a division of U.S. Bank, has arranged and will manage an $86 million Low-Income Housing Tax Credit (LIHTC) fund for Google, the popular search engine firm. The fund will provide a major source of funding for the construction and operation of 480 affordable rental housing units for low income families and senior citizens in seven communities throughout the West and Midwest.
USBCDC originated the LIHTC investments with experienced LIHTC housing developers to oversee the completion and lease-up of housing developments in Waukegan, Illinois; Apple Valley, Minnesota; Des Moines, Iowa; Milwaukee, Wisconsin; and Fontana, Palm Springs and Salinas, California. This is USBCDC's first LIHTC fund with Google.
Brent Callinicos, Google vice president and treasurer said, "In recent years there has been a void in affordable housing investment. Our investment with USBCDC allows us to further our goal of providing relief to people who otherwise may not have access to quality housing."
Relatively new as an investor of LIHTCs, Google is bringing fresh capital to the industry at a time when many developers of low-income housing projects have been faced with significant financial gaps. Their commitment to affordable housing marks a continuing expansion of the affordable housing investor base beyond traditional investors such as banks and insurance companies.
The fund includes housing developments in the Midwest, an area where affordable housing investment has lagged in recent years, as well as in the California state where Google's Mountain View headquarters is based. Many of the complexes include a range of one to four-bedroom apartments, and offer a shared laundry facility and community gathering area. In addition to this USBCDC sponsored fund, Google also recently invested in two other low-income housing projects for senior citizens, one in the San Francisco Bay community of Sunnyvale, and the other in the Los Angeles County community of Inglewood.
"We're proud to align with Google in a shared commitment to affordable housing," said Larry Baerveldt, director of tax credit syndications for USBCDC. "The expansion of the affordable housing investor base beyond traditional investors is an exciting development for the industry and comes at an important time. This investment by Google, together with the efforts of our strong developer partners, will result in completion of nearly 500 new affordable rental housing units for low income families and senior citizens."
USBCDC has been an active direct investor in affordable housing since 1987. It works closely with businesses, nonprofits and governmental development teams to strengthen communities by building safe, secure, affordable housing for families, seniors, residents of public housing, those with special needs, or Section 8 tenants. In addition, USBCDC provides resources and expertise in the rehabilitation of historic buildings, the development of renewable energy facilities and the generation of commercial economic activity in low-income communities.
Source: U.S. Bancorp