Preservation Fund

Keeping Affordable and Workforce Housing Affordable

Alliant Strategic has developed an innovative long-term strategy for investment in affordable housing across the U.S. through our Preservation Funds. The Funds will acquire affordable housing properties throughout the U.S. with the intent to preserve and extend long-term affordability utilizing our intensive fund and property management.

The Opportunity

The LIHTC program has generated over 2 million affordable housing units since its inception in 1986. Every year approximately 120,000 units reach the end of their 15 year compliance period, triggering a sale or recapitalization of the asset. Often, as properties are being marketed for sale, market rate and affordable housing buyers compete to acquire the properties.

The nation’s stock of both assisted and privately owned low-cost rentals includes many units at risk of loss.

For buyers intent on preserving affordability, purchase offers are often conditioned on obtaining new tax credits which can represent a delayed or uncertain execution. Combined with a lack of bridge or short term financing to close the acquisition, contracts are difficult to close and sellers choose more certain market executions. As a result many properties are disappearing from the workforce/affordable housing supply chain.

As these affordable properties disappear, more income challenged Americans are forced to find alternative and less desirable housing options.

Our Approach

Alliant Strategic's Preservation Funds will seek to acquire affordable properties nearing the end of their 15 year compliance period and will provide a light renovation of the property while intensively managing the asset. Our unique position as being an integrated owner / operator and investor of affordable housing properties provides ASI the tools to seek out appropriate acquisitions, purchase opportunistically and diligently asset manage to create value for our investors and safe, affordable communities for our residents.

Benefits of Preservation Fund Investments

  • Increase Cash Flow: Returns are in the form of cash distributions, not tax credits and losses.

  • Increase Cash: Quarterly distributions provide a positive impact to corporate P&L.

  • Increase Book Value: Property appreciation combined with quarterly cash returns provides above benchmark returns with a low risk profile.

  • Social Benefit: Corporations appreciate the social benefit provided by the development of affordable housing.
  • CRA Obligations: May satisfy CRA obligations for banks and socially responsible investment objectives for Insurance Companies and Pension Funds.
  • Stabilized Assets: Elimination of construction and lease up risk inherent in new LIHTC and CRE transactions.

Next Steps

There are many financial and social benefits to diversifying your investment portfolio with ASI Preservation Funds. Our experienced team would be happy to go over your unique circumstances and work with you to determine how Preservation Fund investments can work for you.