Walker & Dunlop closes $240 million affordable housing fund

Walker & Dunlop has announced the closing of a $240 million Low-Income Housing Tax Credit (LIHTC) fund — the largest in the firm’s history — that’s aimed at supporting the development of affordable housing across 10 states.

Fund 124 will finance 18 housing developments totaling 1,701 units in California, Texas, Maryland, Utah, Missouri, Michigan, Connecticut, Florida, Idaho and Kansas.

The fund targets key markets with a high demand for affordable housing, and it includes developments with set-asides for seniors, low-income households and formerly homeless individuals.

“Fund 124 represents an exciting milestone that will create meaningful and lasting change in communities across the U.S,” Dudley Benoit, senior managing director of affordable equity investor relations at Walker & Dunlop, said in a statement.

“The fund’s focus on affordable housing, along with our long-standing partnerships with experienced developers, underscores our dedication to providing safe, high-quality housing to those who need it most.”

According to the company, 44% of the units will be supported by project-based Section 8 contracts — with roughly 62% of the fund’s developer partners being repeat clients.

The federal LIHTC program incentivizes private investment in affordable rental housing for low-income individuals and families.

As the main driver of affordable housing development nationwide, the program offers tax credits to developers who commit to reserving a portion of their units at below-market rents for a specified period — usually 30 years.

Recent efforts by state lawmakers have sought to expand the LIHTC program while also directing more benefits toward rural areas.

Developments supported by Fund 124 are expected to create more than 4,500 jobs and contribute nearly $900 million in economic impact to local communities. In addition to housing, the properties will offer resident services such as case management, financial literacy programs, after-school support and meal services.

The fund maintains a weighted average hard debt leverage ratio of 32% of total development costs, according to company leaders.

Fund 124 follows Walker & Dunlop’s previous LIHTC vehicle — Fund 119 — which closed last year with $167 million in commitments. It supported 19 communities totaling 1,044 units across 12 states.

Walker & Dunlop is the second-largest multifamily lender in the U.S. and has raised more than $10 billion in LIHTC equity to date.

From 2021 to 2024, the firm originated more than $6.3 billion in affordable and workforce housing financing through the U.S. Department of Housing and Urban Development, Fannie Mae, Freddie Mac and other capital market sources.