PNC Multifamily Capital Announces $208 Million Affordable Housing Fund, Increasing Access to Affordable Housing Across the U.S.

Rhea-AI Summary

PNC Bank has announced the closing of Low-Income Housing Tax Credit (LIHTC) Fund 98, a $208 million investment initiative aimed at developing and rehabilitating affordable rental housing across the United States. The fund, supported by PNC and seven other financial institutions, will finance over 2,000 affordable homes across 15 multifamily properties in 11 states. Key projects include the renovation of the 78-unit Albert Einstein Residence Center in Sacramento, the 38-unit Walnut Square Apartments in Allentown, and the 44-unit Stiegel School Apartments adaptive reuse project. PNC Multifamily Capital, managing approximately $15.5 billion in tax credit equity supporting over 133,000 affordable rental units, demonstrates its continued commitment to addressing the nation's affordable housing shortage through this initiative.

Positive

• $208 million investment to create over 2,000 affordable housing units across 11 states
• Expansion of investor base with two new institutional investors joining the LIHTC fund
• Projects include sustainable features like LEED certification and energy efficiency improvements
• Strong portfolio management with $15.5B in tax credit equity supporting 133,000+ affordable rental units

Negative

• None.

Insights

Financial Analyst specializing in Banking and Real Estate

PNC's $208M affordable housing fund strengthens its position in tax credit syndication while diversifying revenue streams through real estate financing.

PNC Bank has closed a $208 million Low-Income Housing Tax Credit (LIHTC) Fund to finance over 2,000 affordable housing units across 11 states. This represents a strategic expansion of PNC's tax credit syndication business, which already manages approximately $15.5 billion in tax credit equity supporting 133,000 affordable rental units nationwide.

The fund's structure is particularly noteworthy - it includes investments from PNC itself plus seven other financial and insurance companies, including two first-time investors in PNC's LIHTC funds. This demonstrates PNC's ability to attract new institutional capital partners, suggesting strong market confidence in their syndication expertise.

The $208 million investment aligns with PNC's broader multifamily financing strategy. Their multifamily capital division maintains a substantial $31 billion agency loan portfolio alongside their tax credit equity business. This diversified approach to real estate financing provides multiple revenue streams while addressing affordable housing needs.

The scope of projects - spanning family housing, senior living, homelessness prevention, and special needs housing - indicates PNC's comprehensive approach to community development. Projects like the Albert Einstein Residence Center rehabilitation and the adaptive reuse of the historic Stiegel Elementary showcase their commitment to both preserving existing affordable housing stock and creating new units.

For investors, this announcement reinforces PNC's position as a leader in the affordable housing finance sector, which benefits from government incentives through the LIHTC program while generating consistent returns. The bank's growing $15.5 billion tax credit equity portfolio represents a significant business segment that contributes to their broader financial services strategy while addressing critical housing infrastructure needs.

PITTSBURGH, June 18, 2025 /PRNewswire/ -- PNC Bank, N.A., a tax credit syndication leader, today announced the closing of Low-Income Housing Tax Credit (LIHTC) Fund 98, which is investing more than $208 million in the development and rehabilitation of affordable rental housing across the U.S. The fund includes investments from PNC and seven other financial services and insurance companies, including two investors that are new to PNC's LIHTC funds.  

The investment will provide a positive impact nationwide by financing the construction or rehabilitation of more than 2,000 affordable homes in 15 multifamily properties across 11 states: Alabama, California, Hawaii, Illinois, Kentucky, Minnesota, Nevada, Ohio, Oregon, Pennsylvania and Texas. The properties are designed to serve families, seniors, people experiencing homelessness and those with special needs. A few notable projects include¹:

• Albert Einstein Residence Center in Sacramento, California: Originally built in 1981, the renovation of the Einstein 78-unit apartment community will help ensure that the residents — all seniors — have affordable long-term housing. The residents will now benefit from supportive services provided onsite by a local organization. Services include community-building activities, health and wellness services, and coordination of external services.
• Walnut Square Apartments in Allentown, Pennsylvania: The 38-unit property intends aims to provide affordable homes for individuals and families at or below 20%, 50% and 60% of the area median income (AMI). The units will be highly energy efficient, achieving Leadership in Energy and Environmental Design (LEED) Silver certification from the National Green Building Council and a reduced Home Energy Rating System (HERS) index certification. Residents will also receive onsite supportive services, including career counseling, professional skills development, financial education, and health and wellness support.
• Stiegel School Apartments in Manheim, Pennsylvania: Focused on serving senior tenants, this 44-unit property is an adaptive reuse of the historic Stiegel Elementary building built in 1914, which operated as an elementary school for over a century. The development intends to offer 44 new, high-quality apartment homes for seniors at 20%, 50%, 60%, and 80% of the AMI. The property will also offer a supportive services program crafted to meet the needs of senior residents, including coordination with local nonprofit organizations.

"The LIHTC Fund 98 closing illustrates PNC Multifamily Capital's continued and longstanding commitment to financing new and improved affordable housing across the country," said Megan Ryan, SVP and manager of Tax Credit Equity Syndication for PNC Multifamily Capital. "As the nation continues to grapple with a shortage of affordable housing, the fund, which is made possible by our institutional investors, will bring much needed relief in the form of more than 2,000 affordable homes to communities throughout the country."

PNC Multifamily Capital is one of the largest providers of affordable multifamily equity and both affordable and conventional debt in the industry. Through tax credit equity, agency lending programs and traditional bank balance sheet lending, PNC Multifamily Capital supports developers, investors and local organizations in their efforts to finance multifamily housing, rehabilitate historic sites and provide critical community services. As of Dec. 31, 2024, PNC Multifamily Capital manages approximately $15.5 billion in tax credit equity that supports more than 133,000 affordable rental units, 176 New Markets Tax Credits (NMTC) investments and 69 historic properties nationwide, as well as maintaining a $31 billion agency loan portfolio. For more information about PNC Multifamily Capital, visit www.pnc.com/pncmultifamilycapital.

PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

PNC Bank and certain of its affiliates including PNC TC, LLC, an SEC registered investment adviser wholly-owned by PNC Bank, do business as PNC Real Estate. PNC Real Estate provides commercial real estate financing and related services. PNC TC, LLC, which operates within PNC Real Estate's Multifamily Capital segment, provides investment advisory services to funds sponsored by PNC Real Estate for LIHTC, NMTC, HTC and affordable housing preservation investments. Registration with the SEC does not imply a certain level of skill or training. This material does not constitute an offer to sell or a solicitation of an offer to buy any investment product. Risks of each fund, as well as information regarding the investments, risks, and expenses of each fund, are described in the fund's private placement memorandum ("PPM") or other offering documents. Please read the PPM and offering documents carefully before investing.

Important Investor Information: Investment products are: Not FDIC Insured / Not Guaranteed / May Lose Value

¹ The projects listed above are not a complete list, and may not be representative, of all projects in which the fund currently has invested.

CONTACT:

RJ Tamburri
(412) 762-9614
rj.tamburri@pnc.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/pnc-multifamily-capital-announces-208-million-affordable-housing-fund-increasing-access-to-affordable-housing-across-the-us-302485237.html

SOURCE PNC Bank

FAQ

What is the size of PNC's new LIHTC Fund 98 and how many housing units will it create?

PNC's LIHTC Fund 98 is a $208 million investment that will create or rehabilitate more than 2,000 affordable homes across 15 multifamily properties in 11 states.

Which states will benefit from PNC's new affordable housing fund?

The fund will support projects in 11 states: Alabama, California, Hawaii, Illinois, Kentucky, Minnesota, Nevada, Ohio, Oregon, Pennsylvania and Texas.

How many affordable rental units does PNC Multifamily Capital currently support?

As of December 31, 2024, PNC Multifamily Capital manages tax credit equity supporting more than 133,000 affordable rental units nationwide.

What types of residents will PNC's affordable housing fund serve?

The properties are designed to serve families, seniors, people experiencing homelessness, and those with special needs.

What sustainable features are included in PNC's affordable housing projects?

Projects like Walnut Square Apartments will achieve LEED Silver certification and include reduced Home Energy Rating System (HERS) index certification for energy efficiency.