Fund to support the development of 12 properties and 767 affordable homes, including senior and family apartments
The Richman Group Affordable Housing Corp closed the $130 million Richman Western Region Fund II L.P. The unique fund focuses specifically on affordable housing development in six western states.
The fund is comprised of eight investors and 11 repeat developer clients, and will be used to develop 12 properties across California, Idaho, Nevada, New Mexico, Oregon and Utah. The scale of the development projects is anticipated to have a massive local economic impact of approximately $275MM. In addition to the number of new homes created, the developments made possible through the fund could generate upwards of 1,450 jobs.
“We’re thrilled to be able to provide equity capital to these western state affordable communities through the Richman Western Fund II, and we’re equally excited about the economic lift and employment opportunities these development projects will create,” said Terry Gentry, Executive Vice President of The Richman Group Affordable Housing Corp. “At Richman, our objective is to not only participate in the development of top-quality homes and residential communities, but also to positively contribute to the neighborhoods and local economies.”
Richman is also committed to using the fund to address specific rental housing needs. Of the 12 properties and 767 apartment homes created through the fund, 216 homes are slated for senior housing. Another 126 homes will be designated as affordable, subsidized through USDA and HUD and made available to renters between 0% and 60% average income ranges. Six of the properties will be developed in rural communities and two will be constructed in recent disaster areas in California and Nevada. In addition, six properties will bring affordable homes to majority Black, Indigenous, and other People of Color (BIPOC) communities.
“Pinpointing and addressing underserved segments of the rental housing marketplace has always been part of our mission, and investors who contribute to funds like this enable us to tackle those issues head-on,” said Gentry. “These properties will make a real difference in the lives of the residents who call them home, but also in the health, and in some cases recovery, of the local community.”