One of the unique aspects of the low-income housing tax credit is the long-term relationship it engenders between project sponsors, syndicators and investors. All have a vested interest in the financial and structural integrity of the project for 15 years, and often beyond.

To help meet that objective, NEF, Inc. has created an Asset Stabilization Team. It focuses on projects that, for a variety of reasons, are considered at-risk, working closely with sponsors and their property managers to identify issues, develop solutions and reach out to the lenders, government officials and others that can help restore a troubled project to health.

With those efforts, NEF, Inc. has seen only a handful of projects foreclosed on since 1987 out of a portfolio of more than 1,500 projects.

"We're proud of that track record," commented Joe Hagan, NEF president and CEO. "People unfamiliar with our business might assume these projects are riskier than more traditional real estate. But we've found that good relationships with sponsors and consistent asset management mitigate most of the risk that exists. That's very important for investors, but it's also critical for residents."

In rare cases, NEF, Inc. identifies a need to step in as general partner—through its affiliate, Community Development Associates. More typically, asset stabilization involves work with sponsors, lenders, property managers and residents to determine the best possible course.

Key Contacts

Rose Eaton
Vice President/Asset Stabilzation
reaton@nefinc.org

Gerald Fleming
Director/CDA
312-697-6186
gfleming@nefinc.org

Patrick O'Leary
Asset Stabilization Manager
312-697-6450
poleary@nefinc.org


Other Contacts
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Midwest
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Public Housing
General Investment Terms