NEF Deploys Record $2.5B in Affordable Housing Amid Deepening National Crisis

CHICAGO, IL – January 13, 2026 – Against a backdrop of soaring housing costs and a severe national shortage of affordable homes, the National Equity Fund (NEF) announced a landmark year, deploying $2.5 billion across 130 investments in 2025. The Chicago-based non-profit set a new organizational record by raising and investing $1.94 billion in federal Low-Income Housing Tax Credit (LIHTC) equity, helping to create or preserve more than 14,200 affordable homes for families and individuals across the country.

These results were achieved despite significant economic headwinds and broader industry disruption, positioning the organization for continued momentum with an already-secured pipeline of over $1.7 billion for 2026. The year's performance brings NEF's total investment since its 1987 inception to nearly $30 billion, supporting the development of approximately 275,000 affordable homes nationwide.

"I'm proud of our strong performance, especially in a challenging year," said Matt Reilein, president and CEO of National Equity Fund. "We fostered deep, meaningful relationships with both new and long-standing investors and sponsors, and paired creative capital solutions with responsible risk and asset management to deliver affordable homes for thousands of families across rural, suburban, and urban communities nationwide."

A Financial Lifeline in a Perfect Storm

The scale of NEF's 2025 achievement is magnified by the severity of the U.S. housing crisis. According to the National Low Income Housing Coalition, the nation faced a shortage of over 7 million affordable and available rental homes for its lowest-income renters in recent years. With rents having climbed 30% since 2017 and construction failing to keep pace with demand for over a decade, millions of American families are severely cost-burdened, spending more than half their income on housing.

NEF’s record-breaking year directly confronts this challenge. The nearly $2 billion in combined federal and state tax credits it invested provides the critical equity needed to make affordable housing projects financially viable. This capital is the lifeblood for developers who face a perfect storm of their own: construction costs that have surged by as much as 40% since 2019, high interest rates, and fierce competition for limited public resources.

Innovation Beyond the Tax Credit

While LIHTC syndication remains its cornerstone, NEF's 2025 success was also driven by a strategic expansion of its financial toolkit. The organization committed $511 million in structured finance solutions—including preservation debt, equity placements, and pre-development loans—to address capital gaps across the entire housing lifecycle, from initial concept to long-term preservation.

This innovative approach was demonstrated in the summer of 2025 when NEF completed the largest single investment in its nearly 40-year history. The $444 million transaction, executed in partnership with Guardian Real Estate Services and JPMorganChase, successfully preserved approximately 2,700 affordable homes across 13 properties in Albuquerque, New Mexico, and Portland, Oregon. The deal was hailed by industry observers as a catalytic event for affordable housing preservation, ensuring long-term stability for thousands of residents.

Further showcasing its capacity for large-scale execution, NEF also closed its largest-ever single LIHTC transaction: a nearly $100 million deal with Fannie Mae to deliver 432 affordable homes to the high-cost Crystal City neighborhood of Arlington, Virginia. Such projects are critical in economically vibrant areas where low- and moderate-income workers are often priced out.

NEF also launched its inaugural NeighborWorks Capital Equity Fund, a first-of-its-kind partnership designed to level the playing field for mission-driven non-profit developers. The fund, which closed at over $110 million, provides standardized and equitable LIHTC terms to community-based organizations that often struggle to compete with larger, for-profit developers for capital. This initiative aims to empower local organizations to build and preserve housing, with a particular focus on underserved rural markets.

Navigating a Shifting Policy Landscape

NEF's performance comes as the policy landscape for affordable housing undergoes significant changes. In July 2025, the passage of the "One Big Beautiful Bill Act" (OBBBA) was seen as a major victory for the industry. The legislation permanently lowered the threshold for projects to qualify for the 4% LIHTC and enacted a permanent 12% increase in the 9% LIHTC state allocations. These changes are projected to finance more than a million additional affordable rental homes over the next decade.

However, these positive developments are tempered by the persistent challenges that make building affordable housing difficult. Even with enhanced tax credits, developers grapple with stringent regulatory requirements, volatile interest rates, and the fundamental issue that the demand for credits still far outstrips the available supply. NEF's ability to navigate this complex environment and successfully close 130 investments underscores the value of its deep expertise and strong partnerships.

The Human Capital Behind the Financial Capital

NEF leadership connects the firm's external success directly to its internal culture. In 2025, the organization was honored for the fifth consecutive year as a Best and Brightest Company to Work For® in both Chicago and nationally, a recognition reflecting its commitment to employee engagement and talent development.

This focus on its workforce is seen as a key driver of its mission-driven success. The complexity of structuring multi-layered financial deals, preserving at-risk properties, and forging new partnerships requires a dedicated and innovative team.

"NEF's story of resilience, collaboration, and innovation would not be possible without our people, who remain our greatest asset," Reilein added. "These results reflect the strength of our platform, the quality of our team, and the trust our partners place in us."