Greystone Closes $137M Fund for Affordable Housing

Greystone Real Estate Capital closed its second affordable housing fund, raising $137 million. This latest fund brings the firm's total Low-Income Housing Tax Credit (LIHTC) equity to over $240 million, attracting three existing and five new institutional investors. Chief Investment Officer Todd Jones stated that Greystone has established 13 new investor relationships within the past year. The firm's first fund, valued at $103 million, closed in August 2025. This increased investment activity coincides with a broader rise in LIHTC investment, driven by state program expansions and federal support, including the One Big Beautiful Bill Act. These trends emerge as cities and states implement housing reforms to combat persistent affordability issues nationwide.

The new $137 million fund will support 11 developments across 20 properties in nine states, aiming to create 1,960 affordable housing units. Greystone's initial fund provided capital for 959 units across 11 projects in Louisiana, Massachusetts, Mississippi, New Jersey, Ohio, and Pennsylvania. Stephen Rosenberg, Greystone's CEO, expressed commitment to expanding the firm's impact through innovative capital solutions for the growing demand for affordable housing. Notably, 10 of the properties in the latest fund are part of a rural development portfolio, a segment less commonly targeted by LIHTC deals which often focus on urban markets.

The fund's equity allocation is divided between new construction (60%) and the rehabilitation of existing units (40%). A significant portion of the fund's equity, 84%, has been directed towards repeat developers, highlighting Greystone's strategy of leveraging established partnerships within the development community. This approach underscores the firm's focus on reliable execution and long-term relationships in the affordable housing sector.