Clark Capital seeks to acquire, optimize, and maintain Section 42 housing developments across municipalities in the U.S.
Market rents and housing costs are becoming increasingly out of reach for large swaths of the population. In major metropolitan areas, lower rent stocks have markedly declined over the past decade with rents continuing to outpace general inflation.
Clark Capital is well-positioned to capture trends by prudently investing in affordable housing developments, providing and maintaining high quality units, and achieving attractive risk-adjusted returns for its investors.
We believe that Section 42 housing is an asset class that demonstrates attractive investment attributes including recessionary defensiveness, monthly cash-flow generation, steady occupancy, and attractive yet realistic return streams.
Housing tax credit program that benefits developers and investors that dedicate space in their communities to affordable housing. In exchange, they receive a federal tax credit, not government subsidies.
Specifically for income-qualifying renters who want to live in private market housing.
Rent is set at a rate below the average cost of rental housing in the area (market rate).
Municipal workers, teachers, retail employees, entry-level office workers, tradesmen.
Tenants pay 100% of the rent and treat units with respect.
Acquiring existing stock from a tax-credit investor who is typically looking for liquidity once tax-credit is fully maximized
Conducts rigorous diligence on each property focused on condition, title, historical financials, financing, property management
Engage best-in-class 3rd party property management not only LIHTC compliance but to ensure the quality of the units and properties to tenants
| General Criteria: | Properties in Section 42 affordable housing program that are stabilized and accompanied with least 12 years of historical financials. |
| Target Size: | $2 million to $10 million (equity). |
| Target Geography: | Across the continental United States. |
