PORTLAND, ORE. — Portland-based multifamily operator, developer and investor Guardian has acquired a portfolio of 15 affordable housing communities in Oregon and New Mexico, each of which has reached the end of its 15-year LIHTC compliance period. Guardian will convert a portion of the portfolio’s market-rate units to be rent capped at 60 percent of area median income.
The acquisition was completed in two separate phases. The first phase included two Portland-area properties totaling 310 units, acquired with capital partner AEW. The second phase included 13 properties and 2,740 units throughout the Portland and Albuquerque metro regions in a venture with NEF and JPMorgan Chase. The new owners worked with each state’s housing finance agency to approve a continuation of the affordability restrictions.
At the end of year 15 of a LIHTC property’s compliance period, the IRS can no longer reclaim tax credits, and some limited partners or tax credit investors typically pull out of deals at that time. All the properties in the portfolio were built after the year 2000 and were at risk of market-rate conversion.