National Equity Fund Closes $31 Million Investment Tax Credit Deal with The Pacific Companies Across 33 California Affordable Housing Communities

National Equity Fund has closed a $31 million investment tax credit transaction with The Pacific Companies, directing proceeds toward renewable energy upgrades at 33 affordable housing developments across California, the firms announced Sept. 16.

The deal involves National Equity Fund's purchase of $31 million in investment tax credits tied to clean energy improvements — including solar panels, battery storage systems, and EV charging stations — at properties owned and controlled by The Pacific Companies. The stated goal is to reduce electricity consumption and lower utility costs for residents while improving the long-term sustainability and resiliency of the portfolio.

Deal Structure and Strategic Rationale

National Equity Fund framed the transaction as a milestone in its effort to deploy capital beyond traditional low-income housing tax credit equity. The organization has formalized a renewable-energy investment tax credit platform targeting clean energy projects that serve affordable housing and other mission-aligned developments benefiting low- and moderate-income households and communities.

By monetizing federal clean energy investment tax credits, National Equity Fund is effectively using the credits as a quasi-equity source to pay for building-level retrofits that would otherwise compete with basic capital needs in constrained affordable housing budgets. The firm described the transaction as an example of "innovative ways to bridge capital gaps that often challenge the affordable housing industry."

Portfolio Overview: 33 California Communities

The 33 affordable housing developments in the transaction are located across California and represent a range of deed-restricted multifamily properties serving low-income families and seniors. The portfolio is broadly consistent with The Pacific Companies' California affordable housing footprint, which includes garden-style and mid-rise multifamily properties across secondary and tertiary markets, typically in the 40- to 100-unit range.

Properties in The Pacific Companies' California affordable portfolio include Arborpoint Apartments in Madera (65 units), Aspen Apartments in Tulare (47 units), Aster Place in Eureka (40 units), Bella Vista Senior in Lakeport (48 units), Bidwell Park in Chico (38 units), Blue Oak Court in Anderson (80 units), Chico Courtyards in Chico (76 units), Cinnamon Villas Senior in Lemoore (80 units), and Colonial House in Oxnard (44 units), among others. These properties span Madera, Tulare, Humboldt, Lake, Butte, Shasta, Kings, and Ventura counties, illustrating the geographic breadth of the portfolio across the state.

The scale and construction type of these assets — small- to mid-size multifamily buildings — make them well suited for rooftop solar installations, battery storage, and EV charging infrastructure, which are the categories of improvement the investment tax credit proceeds are intended to fund.

National Equity Fund's Broader Capital Deployment Context

The transaction comes after a period of significant capital activity for National Equity Fund. In 2025, the organization deployed $2.5 billion in affordable housing investments, of which approximately $1.94 billion was low-income housing tax credit equity. That activity brought National Equity Fund's cumulative production to more than $30 billion in total investments and approximately 292,000 affordable homes nationwide.

The $31 million investment tax credit purchase with The Pacific Companies represents an incremental layer atop that pipeline — a strategy to deepen relationships with established sponsors by financing energy upgrades that improve both asset performance and resident outcomes. National Equity Fund has emphasized that as rising operating and construction costs continue to pressure rent-restricted properties, creative financing solutions are essential to ensure the long-term stability of affordable housing assets.

Market Implications

The transaction reflects a broader trend among affordable housing finance organizations to align federal clean energy incentives with the low-income housing tax credit ecosystem. Investment tax credits, which allow investors to claim a credit against federal income tax for qualifying renewable energy investments, are increasingly being applied to existing LIHTC-backed properties as a way to fund capital improvements that traditional soft money and tax credit equity do not cover.

For affordable housing operators, the appeal is direct: solar and battery storage systems reduce electricity costs that would otherwise fall on residents or erode property cash flow, while EV charging infrastructure positions properties for longer-term relevance. National Equity Fund indicated it is actively marketing its clean energy ITC platform to developers and investors seeking to move affordable housing forward through utility efficiency programs and clean energy incentive alignment.

Sources

National Equity Fund – Milestone Transaction for Investment Tax Credits