About Asset Management
Enterprise Community Investment, Inc. is a national leader in investment and development services for affordable housing and community revitalization efforts. Founded in 1984 as a socially motivated for-profit corporation, Enterprise Community Investment’s core business is syndicating tax credit equity investments through the federal Low-Income Housing Tax Credit (LIHTC) program. Enterprise took a lead role in the creation of the LIHTC program. Our investments are helping to build affordable homes in 49 states, Puerto Rico and the District of Columbia.
The federal LIHTC program was enacted in 1986 and provides tax incentives to encourage the private investment of capital for the development of decent, affordable rental housing. To receive the benefits of the LIHTC, the program requires owners of qualifying rental housing to maintain compliance with low-income occupancy requirements for a minimum of 15 years. Those projects that received tax credit allocations after 1989 must continue to meet federal low-income occupancy requirements for an extended period (usually a minimum of 30 years).
Since 1986, Enterprise has used LIHTC to finance affordable apartments and homes. Enterprise Community Asset Management Inc. oversees a portfolio of 103,000 homes financed by LIHTC investments – from project construction, lease-up and completion throughout the 15-year LIHTC compliance. Enterprise monitors the projects focusing on real estate management, tax credit and lender compliance as well as financial and tax review. We proactively manage the proper allocation of tax losses and credits throughout our investors’ ownership of the project.
Our more than 70 asset management professionals provide a range of services that preserve value for investors and quality of life for residents including:
- Close oversight of construction and lease-up including review of inspection reports, construction draws and verification of tenant income
- Regular analysis of financial performance and site visits including inspection of physical condition
- On-going monitoring of operations and project information and timely reporting to investors
- Early recognition of potential problems, active response to address issues and workouts capacity to intervene intensively with more complex or difficult situations
- Work with partners who want to transfer property ownership at the end of the 15-year LIHTC compliance period
In addition to these routine activities, Asset Management overseas a Real Estate Owned (REO) function that occasionally may serve in an ownership capacity through several legal entities. Enterprise entities have stepped into over 40 properties for an interim period as part of workouts, usually as a general partner (GP) or co-GP.
Lessons learned through asset management offer experience that can help developers improve the housing they build. On an annual basis, asset managers issue an analysis of trends in the performance of the portfolio.
Enterprise works with a variety of local, state and federal income-targeted housing finance programs, including: HOME, Federal Home Loan Bank’s Affordable Housing Program, Section 8, McKinney funds, Housing Opportunities for People with AIDS (HOPWA) and various supportive housing programs.
Enterprise’s asset management database, EPIC, tracks project performance, supports underwriters in analyzing potential credit investment, and provides information on equity funds and projects to investors.
The Enterprise database is fully integrated among asset management, syndication and investment management, allowing easy access to information.
Our asset management database tracks project performance, supports underwriters in analyzing potential credit investment and provides investors with information on equity funds and projects. The Enterprise database is fully integrated among asset management andsyndication and investment management, which allows easy access to information.
Enterprise provides the same high-quality asset management services on a consulting basis. Please contact us to inquire about how we can assist your organization with its asset management needs.
As of September 2016, Enterprise had provided asset management to 1,480 LIHTC projects in 48 states, Washington, D.C., and Puerto Rico. Our current portfolio consists of:
- 1,373 projects which have reached stabilization
- 107 projects which are in various stages of development and lease-up
- More than 105,000 affordable housing units
- More than $9.8 billion in gross equity
While affordability is the predominant characteristic of the Enterprise portfolio, there is also a significant concentration in urban areas with nonprofit sponsors. Construction type and age are more evenly dispersed within our portfolio.
- Of the total 1,480 projects in our LIHTC portfolio, 60 percent are located in urban areas.
- Of the $8.3 billion net equity invested in projects, 69 percent is invested in the urban locations.
- Currently 100 percent of the projects in our portfolio are residential properties, 11 percent of which include commercial space (mixed-use) and 16 percent of which include market rate (mixed income) residential units.
- Projects with exclusively low-income rental units account for 73 percent of the portfolio. Overall, 93 percent of all portfolio units are LIHTC units.
Project Sponsor Type
- Nonprofit sponsors represent 75 percent of the portfolio’s sponsors, although by region they represent approximately 81 percent of the West regions' sponsors.
Project Construction Type
- More than half of our 1,480 projects are new construction.
- Substantial rehabilitation projects account for 23 percent of our portfolio.
- On a regional basis, there are a higher percentage of substantial rehabs in the Northeast. This is due to the large number of substantial rehab projects generated from New York City’s historical stock of vacant and occupied properties that have been rehabilitated for low-income housing.
Enterprise Green Communities is the first national green building program developed for affordable housing. Through this program, Enterprise has provided financial support and technical expertise to enable developers to build and rehabilitate homes that are healthier, more energy efficient and better for the environment on a cost-effective basis.
Enterprise Green Communities provides a variety of online resources:
- Ready to Respond: Disaster Staffing Toolkit
- Green Communities Technical Assistance Providers Database
- Green Asset Management Toolkit
- Universal Design Model Specifications
- Green Leader Toolkit