LISC announced today a $10 million investment from Truist in the Dallas Housing Opportunity Fund LLC (DHOF), an impact investment vehicle that is financing much-needed affordable housing in high-opportunity Dallas communities.
November 30, 2020 - Dallas, Texas
DALLAS (Nov. 30, 2022)—LISC Fund Management, LLC (LFM), a wholly owned subsidiary of Local Initiatives Support Corporation (LISC), announced today that financial institution Truist [NYSE: TFC] has made a $10 million investment in the Dallas Housing Opportunity Fund LLC (DHOF), an impact investment vehicle that is financing much-needed affordable housing in high-opportunity Dallas communities.
LFM formed and manages DHOF, which was seeded with $6 million from the City of Dallas, in partnership with The Real Estate Council Community Investors (TREC CI). DHOF has invested in two housing developments thus far, which are bringing a combined 158 units of rental housing to the East Dallas community—most of it affordable to families with low-to-moderate incomes. Truist is the fund’s second investor, joining Sunflower Bank, which announced its participation last month.
“Like other major cities, Dallas needs more affordable housing for its working-class families,” Dallas Mayor Eric Johnson said. “I am grateful to have private-sector partners such as Truist that are making significant investments in our city and its communities by helping us increase the supply of affordable housing to meet the growing demand. Together, through partnerships like this one, we are building stronger neighborhoods and a better city."
“There’s an urgent need for more affordable housing in cities across the country, particularly in high-growth areas like Dallas,” said Truist Chairman and CEO Bill Rogers. “Consistent with our purpose to inspire and build better lives and communities, Truist seeks to invest in innovative ways to meet this challenge and develop community-focused solutions, which is why we’re pleased to partner with LISC on this visionary effort that will make a real difference for the communities we serve.”
“We’re pleased to partner with LISC on this visionary effort that will make a real difference for the communities we serve.”
— Bill Rogers, Truist Chairman and CEO
DHOF’s early project investments reflect its priorities for the future—quality housing for underserved residents near amenities and opportunities, like good schools, green space, and retail, according to George Ashton, President of LFM.
For example, DHOF closed on a $ 5.7 million investment last month to support the development of Jaipur Lofts, which, when completed, will include 71 apartments with rents that are affordable to a range of families, from those earning 30 percent of the area median income ($26,700 for a family of four) to 80 percent ($71,200). The development is near public transit, a day care center, a medical center, a local park and in proximity to downtown employment opportunities.
“Families in Dallas need more housing options,” said Megan Lasch with O-SDA Industries, the developer of Jaipur Lofts. “We want to create quality, affordable housing that positively impacts our communities. That requires flexible, affordable capital, as well as a real understanding that strong housing for people at all income levels is fundamental to our quality of life. We are excited to see partners like DHOF and Truist supporting this mission.”
Toward that end, developers are also breaking ground on Dec. 6 on another DHOF investment, Kiva East, which will offer 87 units of rental housing, 70 percent of which are affordable to low-income families, and an on-site Montessori-like day care for residents and families in the surrounding community.
“Affordable housing developers need catalytic capital to bring developments like these to life,” noted Mr. Ashton. “While housing and affordability gaps can’t be closed overnight, impact capital – like the Truist investment—enable DHOF to fuel creative projects, connect to community opportunities, and support city-wide economic growth. These developments are just the beginning.”
Truist has also collaborated with LISC on other efforts around the country, including the Charlotte Housing Opportunity Investment Fund in North Carolina and national initiatives to support small business stability and growth, particularly following the impacts of the pandemic.
Learn more about DHOF at https://www.liscstrategicinvestments.org/dallas-housing-opportunity-fund-dhof
For media inquiries, please reach out to Catherine Carlstedt at CCarlstedt@lisc.org
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Truist has leading market share in many high-growth markets in the country, and offers a wide range of products and services through our retail and small business banking, commercial banking, corporate and investment banking, insurance, wealth management, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $548 billion as of September 30, 2022. Truist Bank, Member FDIC. Learn more at Truist.com.
About LISC and LFM
LISC is one of the country’s largest community development organizations, helping forge vibrant, resilient communities across America. It works with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so that people and local economies can thrive. Since its founding in 1979, LISC has invested $26.7 billion to create more than 463,000 affordable homes and apartments, developed 78.5 million square feet of retail, community and educational space and help tens of thousands of people find employment and improve their finances.
The private funds sponsored by LISC are available only to eligible investors, are offered only pursuant to their official offering documents, and are managed LFM. LFM is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). For more, visit www.lisc.org and www.liscstrategicinvestments.org.
Disclaimer: This document is for informational purposes only and should not be relied upon as investment advice. This document is not a recommendation for any security or investment. An investment in DHOF entails a high degree of risk, including the risk of loss. Past performance is not indicative of future results or a guarantee of future returns. (Full disclaimer linked here) References made to endorsements by any third-party to invest with LFM are not indicative of future performance and do not imply any guaranteed level of service, skill or training. Investors should not rely on endorsements for any purpose and should conduct their own review prior to investing. Bill Rogers, Eric Johnson, and Megan Lasch are not “promoters” who are compensated.