The Housing Tax Credit is a very effective and efficient use of a federal subsidy where the private sector takes all of the development and marketing risk associated with the housing credit, not the government.
Washington, DC (PRWEB) February 18, 2011
Meridian Investments, Inc. announced today it closed Centerline Corporate Partners XXXVIII LP ("CCP 38"), a $119.25 million multi-investor Low-Income Housing Tax Credit ("LIHTC") fund. With the closing of CCP 38, Centerline-sponsored LIHTC funds have raised aggregate equity capital in excess of $10 billion since the inception of the LIHTC program in 1986.
CCP 38 is the first Centerline-managed multi-investor LIHTC fund raised since the company completed its March 2010 restructuring and recapitalization. "On behalf of the entire Company, I am pleased to announce the closing of this new fund. We have an excellent line up of developer and investor partners. And the fund was oversubscribed by nearly 20 percent, showing strong demand for our product and institutional support for Centerline's platform," said Robert L. Levy, President, Chief Operating Officer, and Chief Financial Officer of Centerline. Limited partnership interests in CCP 38 were sold to eight institutional investors; "six are repeat Centerline fund investors and two are first-time Centerline fund investors," said Jerry McDermott, President of Meridian. The fund's $119.25 million in equity proceeds will be used, along with other project-level financing sources, to produce and/or preserve more than 1,300 units of affordable rental housing spread across 16 projects located in 10 states.
"We are very pleased to have closed CCP 38, and we sincerely thank our investor and developer clients for participating in this high-quality investment fund," said Andrew J. Weil, Executive Managing Director of Centerline and head of the Affordable Housing Group. "The closing of CCP 38 demonstrates investor demand exists for quality affordable housing investments offered by strong fund sponsors such as Centerline."
With the closing of CCP 38, Centerline has raised $10,089,308,010 in aggregate tax credit equity across its 136 investment funds since 1986. Meridian has been the exclusive placement agent for Centerline since 1992. Meridian operates in Boston, MA, Washington, D.C. and Louisville, KY placing institutional tax credit equity capital from Fortune 500 companies providing affordable housing in all 50 states, Washington DC and Puerto Rico.
"The Low Income Housing Tax Credit program is widely regarded as the most successful federal housing production and preservation program in the nation's history" according to a recent study by the Joint Center for Housing Studies of Harvard University (December 2009). "The Housing Tax Credit is a very effective and efficient use of a federal subsidy where the private sector takes all of the development and marketing risk associated with the housing credit, not the government," said John Boc, Chairman and CEO of Meridian.
"With the $119.25 million Centerline fund 1508 jobs will be created and more than $42.9 million in federal, state and local revenue will be generated by the 16 properties located in 10 states," said Jack Casey, Vice Chairman - COO of Meridian.
About Centerline Capital Group
Centerline Capital Group, a subsidiary of Centerline Holding Company, provides real estate financial and asset management services, with a focus on affordable and conventional multifamily housing. Centerline is headquartered in New York, New York. For more information, please contact Elizabeth Haukaas at 212.521.6453.
About Meridian Investments, Inc.
Meridian Investments, Inc. established in 1981 as an NASD Broker/Dealer licensed to sell direct participation programs and other forms of securities. Meridian is a national leader in placing corporate investors in the following tax-advantaged investments codified by the IRS: Affordable Housing (§42); Historic Rehabilitation (§47); Alternative Fuels (§29); Renewable Energy (§45); Like-kind Exchanges (§1031); New Markets Tax Credits (§45D); Tax Credit Remarkets. The Meridian Companies have serviced over 200 institutional and Fortune 500 clients.
SOURCE: Meridian Investments, Inc.
Meridian Contact: John P. "Jack" Casey, Vice Chairman, 301-983-5000
Centerline Capital Group Contact: Elizabeth Haukaas, 212-521-6453
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