U.S. Bancorp Community Development Corporation (USBCDC), a division of U.S. Bank, announced it will manage an $86 million Low-Income Housing Tax Credit (LIHTC) fund for Google.
This fund will provide a major source of funding for the construction and operation of 480 affordable rental housing units for low income families and senior citizens in seven communities throughout the West and Midwest, U.S. Bank says.
"In recent years there has been a void in affordable housing investment," said Google Vice President and Treasurer Brent Callinicos. "Our investment with USBCDC allows us to further our goal of providing relief to people who otherwise may not have access to quality housing."
The announcement of the fund notes that this is an expansion beyond traditional investors in affordable housing, such as banks and insurance companies.
"We're proud to align with Google in a shared commitment to affordable housing," said Larry Baerveldt, director of tax credit syndications for USBCDC. "The expansion of the affordable housing investor base beyond traditional investors is an exciting development for the industry and comes at an important time. This investment by Google, together with the efforts of our strong developer partners, will result in completion of nearly 500 new affordable rental housing units for low income families and senior citizens."
The fund includes housing developments in the Midwest and California. Many of the complexes will range from one to four bedroom apartments with shared laundry facilities and "community gathering areas".