Boston, MA Wells Fargo & Company has been named the largest investor in affordable multifamily housing in the U.S., according to a study conducted by accounting firm, Cohn Reznick. With increasing demand for affordable rental options across the nation, Wells Fargo is helping to bridge the affordability gap as the number one investor in Low Income Housing Tax Credits for affordable multifamily housing in the U.S., with $9 billion in investments nationwide over the last five years. 

In Boston, Wells Fargo has contributed more than $294.6 million (according to CRA data) to support affordable housing projects since 2013. 

“There is a significant affordable housing crisis impacting the country right now,” said Bill Cotter, head of Wells Fargo commercial real estate in Greater Boston. “Demand for affordable rental housing continues to be extremely high with many people paying a disproportionate percentage of their income on rent. As the largest commercial real estate lender in the country, being able to help meet the need for more affordable living options for our customers and communities is a top priority for Wells Fargo.”

The Urban Institute estimates that for every 100 “extremely low-income” renter households (those with incomes at or below 30% of the area median), there are just 29 affordable units available in the marketplace, translating into a total shortfall of more than eight million units.

Boston is one example of s cities across the country struggling to provide enough affordable housing for low and moderate-income residents. Wells Fargo has been investing in tax credits for more than 15 years and is one of the few banks active in both direct and fund equity investments, which increases the amount of capital used to build affordable housing for individuals and families. Federal housing tax credits are awarded to developers of qualified projects. Developers then sell these credits to investors like Wells Fargo to raise capital for their projects, which reduces the debt the developer would otherwise have to borrow, enabling the developer to charge reduced rents. 

In addition to tax credit investments, Wells Fargo is an active lender to the affordable housing sector.  Since 2014, Wells Fargo has lent $9.6 billion for affordable housing properties by providing short-term construction, bridge and permanent financing for affordable multifamily properties using its balance sheet as well as the Federal Housing Administration (FHA), and Fannie Mae and Freddie Mac programs. Wells Fargo works closely with experienced multifamily market-rate and affordable housing developers and investors, as well as mission-oriented for-profits and not-for-profits and Community Development Financial Institutions (CDFIs) that are focused on affordable housing and economic development. 

Wells Fargo supports the development and preservation of affordable housing, including both multifamily and single-family housing, in numerous ways including tax credit investments, commercial lending, foundation grants, mortgages, and bank team member volunteer time. Since 2012, Wells Fargo has contributed $25 billion in loans, investments and grants for multifamily affordable housing (according to CRA data). In addition, Wells Fargo Home Mortgage (WFHM) is the No. 1 originator of home loans to residents of low- and moderate-income neighborhoods. WFHM’s loan originations in low and moderate-income neighborhoods totaled nearly $15 billion, or 46,401 loans.  

Wells Fargo & Company is a diversified, community-based financial services company with $1.9 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,600 locations, 13,000 ATMs, the internet and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.