Wells Fargo has invested $9 billion in low-income housing tax credit (LIHTC) equity over the last five years, making it the nation’s largest affordable multifamily housing investor, announced bank leaders.
The ranking is based on research conducted by national accounting firm CohnReznick.
“There is a significant affordable housing crisis impacting the country right now,” said Mark Myers, head of Wells Fargo Commercial Real Estate. “Demand for affordable rental housing continues to be extremely high with many people paying a disproportionate percentage of their income on rent. As the largest commercial real estate lender in the country, being able to help meet the need for more affordable living options for our customers and communities is a top priority for Wells Fargo.”
The $9 billion total is for both 9% and 4% LIHTCs. Wells Fargo contributes debt and equity to support affordable multifamily housing and has financed more than 180,000 units of affordable housing over the last five years.
The financial company has been investing in housing credits for more than 15 years and is one of the few banks active in both direct and fund equity investments, which increases the amount of capital used to build affordable housing for individuals and families.
In addition to LIHTC investments, Wells Fargo is an active lender to the affordable housing sector. Since 2014, it has lent $9.6 billion for affordable housing properties by providing short-term construction, bridge, and permanent financing for affordable multifamily properties using its balance sheet as well as the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac programs.
Wells Fargo released its own affordable investment statistics. CohnReznick said it is not disclosing other individual investor data.