Overview
The Louisiana Rural LIHTC Portfolio comprises two stabilized affordable housing communities: Moss Oaks (46 units, New Iberia) and Homes at Willow Villas (44 units, Hammond), totaling 90 units across two supply constrained rural Louisiana markets.
Both properties operate as single family style, three and four bedroom homes, a product type that consistently outperfoms traditional mulitfamily on occupancy and resident retention. The portfolio is 100% occupied and generating $358,312 in NOI at a 7.46% in-place cap rate.
Both communities are operating with the LIHTC Extended Use period under Section 42, providing long term regulatory stability and a well defined pathway for rent growth. Current rents sit below maximum allowable levels, creating a structured, policy governed opportunity to grow NOI through the program's mark to max mechanism, with no reliance on market speculation or lease-up risk.
New Iberia's economy is supported by energy, agriculture, and tourism, while Hammond is anchored by Southeastern Louisiana University and North Oaks Medical Center. BOth markets reflect sustained, inelastic demand for afforable housing with limited new supply, fundamentals that support durable occupancy and income stability over the hold period.
Investment Highlights
Mark-to-Max Rent Opportunity
A measurable gap exists between in-place rents and allowable LIHTC maximum rent
limits, providing investors the opportunity to increase rents over time as units turn and
rents are adjusted within Section 42 program guidelines.
Extended Use Period
The properties are currently operating within the LIHTC extended use period, providing
long-term regulatory clarity and continued eligibility to operate as affordable housing
communities under Section 42 guidelines.
Rural Section 42 Affordable Housing Communities
Moss Oaks and Willow Villas operate as established Section 42 LIHTC communities
located in rural Louisiana markets, where limited housing supply and stable demand for
affordable family housing support long-term occupancy.
Family-Oriented Unit Mix
Both communities feature predominantly three and four-bedroom floor plans, providing
larger affordable housing options that are typically limited in rural markets and helping
support strong resident demand.
Portfolio Acquisition Opportunity
The offering provides investors the opportunity to acquire two stabilized affordable
housing communities totaling 90 units through a single transaction, creating operational
efficiencies and portfolio scale within the Louisiana affordable housing sector.
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