Greystone Real Estate Capital is continuing its investment in the US affordable housing market. The company closed its second fund, the Greystone Affordable Housing Fund II, securing $137 million in Low-Income Housing Tax Credit (LIHTC) financing from multiple investors. These funds will support the development and preservation of nearly 2,000 affordable housing units across 20 properties in nine states.
Fund II follows the Greystone Affordable Housing Fund I, which closed in August 2025 with approximately $105 million in institutional investor capital. This initial fund has since invested in the development and preservation of nearly 1,000 affordable housing units in eleven US real estate projects. With the closing of Fund II, the total equity Greystone has raised for national affordable housing projects since August 2025 amounts to $240 million.
The funds for Fund II were sourced from eight institutional LIHTC investors, three of whom were already involved in Fund I. Stephen Rosenberg, CEO of Greystone, stated in a release: “The closing of Fund II reflects both the market’s confidence in our affordable housing platform and Greystone’s longstanding commitment to creating and preserving affordable housing nationwide.”
Todd Jones, Chief Investment Officer at Greystone Real Estate Capital, explained that the initiative to create these funds is based on the ongoing national shortage of affordable housing and growing institutional investor demand for high-quality impact investments. These investments benefit from tax incentives provided by the Community Reinvestment Act. Jones emphasised that institutional investors are increasingly seeking investments that deliver significant social impact alongside stable, long-term risk-adjusted returns.
The new equity will be used 60 percent for new construction projects and 40 percent for the renovation of affordable housing projects. 80 percent of the properties in the portfolio will benefit from project-based rental subsidies and serve residents with an average affordability level of 56 percent of the Area Median Income. States where these projects are located include North Carolina, Louisiana, Illinois, Pennsylvania, Connecticut, Arkansas, Tennessee, New Jersey, and Ohio, among others.
Fund II is expected to invest in affordable housing projects across a broad geographical spectrum of the United States, with a focus on markets demonstrating strong demand for affordable housing, as well as partners with extensive project experience. Individual equity investments from the fund are anticipated to range between $3 million and $29 million, averaging an equity investment of $11 million. In total, the full development costs for the 20 properties, including debt, will reach almost $500 million.
- —Creation of approximately 2,700 jobs.
- —Generation of an estimated $300 million in business revenues.
- —Contribution of at least $111 million in local tax revenues.
These new LIHTC developments are expected to have significant economic impacts. Jones added: “We are pleased with both the quality of the portfolio and the strong LIHTC investor and developer reception that formed the foundation and impetus for Fund II.”
