OREANDA-NEWS. On March 16,2007 Citibank, N.A. and Fannie Mae (NYSE: FNM) announced that Citibank purchased from Fannie Mae a portfolio of investments representing approximately $676 million in federal Low Income Housing Tax Credits (LIHTC) for cash plus the assumption of Fannie Mae's capital obligations relating to the investments.

The portfolio consisted of Fannie Mae's investments in 12 funds owning 382 LIHTC properties with a total of 31,050 units that provide rental housing for low-income households. Additional details of the sale were not disclosed. Neither the properties nor the low-income tenants will be affected by the sale. The use of LIHTCs is a key component of Citibank's community development programs, and the bank has significantly stepped up its purchases of these instruments over the past several years.

"Citibank values the opportunity to invest in low-income rental housing and is committed to keeping much-needed capital flowing to these properties," said Andy Ditton, Managing Director of Citibank Community Development. "Low Income Housing Tax Credit developments are beneficial to communities across the country. They help to expand the stock of affordable housing, accelerate the redevelopment of diverse communities, and enhance the overall economic viability of those communities."