Fannie Mae will invest up to $145 million in three low-income housing tax credit funds in a bid to provide capital for affordable rental housing in underserved rural markets. The new funds are Cinnaire Fund for Housing LP 33, Ohio Equity Fund for Housing LP XXVII, and MHEG Fund 50 LP.

"Fannie Mae plays an increasingly important role in supporting underserved markets in rural America," said Dana Brown, vice President of LIHTC investments at Fannie Mae. "These funds will allow us to channel much needed capital to support neighborhoods that need it most." These funds are members of NASLEF, a nonprofit promoting efficient management of state and local equity funds.

Fannie Mae received approval from the Federal Housing Finance Agency  to re-enter the LIHTC market as an equity investor in November 2017.

"It is good to have Fannie Mae back as a low-income housing tax credit investor," said Bill Shanahan, president of The National Association of State and Local Equity Funds. "Working with our nonprofit NASLEF members, Fannie Mae is helping bring much needed capital to the rural, underserved markets. It can be a challenge to attract capital to these markets." Also, Shanahan is president of the Northern New England Housing Investment Fund.

Cinnaire Fund for Housing
Fannie Mae committed to invest up to $35 million in the Cinnaire Fund for Housing LP 33 with Cinnaire Corp. The fund has assets under management of $150.8 million and will invest in partnerships that own LIHTC properties located in Illinois, Indiana, Michigan, Minnesota, and Wisconsin. Thirty-seven percent of the Cinnaire Fund portfolio supports affordable housing in rural markets.

Ohio Equity Fund for Housing
Fannie Mae committed to invest up to $50 million in Ohio Equity Fund for Housing LP XXVII with Ohio Capital Corp. Assets under management will be $250 million to $275 million. Ohio Equity Fund will invest in LIHTC housing projects in Ohio, Indiana, Michigan, Kentucky, Pennsylvania, Tennessee, and West Virginia. Fully thirty-four percent of the fund's investments support affordable housing in rural markets.

MHEG Fund
Fannie Mae committed to invest up to $60 million in MHEG Fund 50 LP with Midwest Housing Equity Group. The fund manages a total of $182 million and will invest in partnerships that own 41 LIHTC properties in Nebraska, Iowa, Missouri, Kansas, Colorado, Oklahoma, and Texas. Fully sixty-eight percent of the fund's portfolio supports affordable housing in rural markets.