SPRINGDALE, Ark. (KNWA/KFTA) — The Excellerate Foundation announced Tuesday that local businesses are investing $40 million to support five new affordable housing developments in the area.

The developments will create 345 rental units affordable to low-income families, with two located in Fayetteville, two in Springdale and one in Bentonville. They will be 49% below current fair market rent, according to a press release.

One of the developments in Fayetteville, located at Patriot Park, will prioritize affordable housing for veterans.

“This collaboration is an example of the community-led solutions that will be essential to supporting the future housing needs of the region,” said Nelson Peacock, president and CEO of the Northwest Arkansas Council. “The workforce housing center will build on these efforts by ensuring working families have access to high-quality, attainable housing connected to opportunities and experiences.

“It is amazing to see so many people—from corporations, developers, city government, the faith community, and nonprofits—step up to support affordable housing solutions in response to the recent Walton Family Foundation study, ‘Our Housing Future’,” said Jeff Webster, president/CEO of Excellerate Foundation.

A tax credit syndicate called the “NWA Regional Fund will provide the needed capital for the investment. as structured by WNC, a premier affordable housing real estate investment firm.

According to data in the press release, tens of thousands of people pay rent in excess of 30-50% of their income, which is unsustainable.

“In 50 years of operation, WNC has seen only two other states that have been able to put together a regional fund like this one. Arkansas now joins this elite group,” says Christine Cormier, executive vice president.