Los Angeles – October 15, 2026 -- Model/Z, a Los Angeles volumetric modular manufacturer, has closed a $32 million New Markets Tax Credit (NMTC) transaction to finance production of modular units for affordable and workforce housing developments.
Financing targets the gap on modules still inside the factory
Traditional construction financing was built around structures erected directly on real estate. Many lenders are therefore reluctant or unable to advance funds for modules that are still in a factory. That forces developers or manufacturers to carry millions of dollars in production costs themselves, which delays projects and erodes the efficiencies of modular construction.
The NMTC deal gives Model/Z a working capital line to start manufacturing modules ahead of a project's on-site construction schedule. Factory output can then run in parallel with foundation and utility work, and the company can keep production steadier.
Deal backs 800 near-term units and a 2,500-unit pipeline
The financing is expected to support about 800 units of near-term orders scheduled for 2026-27 delivery. It should also help facilitate a broader pipeline of about 2,500 affordable and workforce housing units.
Model/Z expects the investment to create and retain more than 117 permanent jobs, open to residents of Watts and surrounding South Los Angeles communities. The company has produced more than 500 housing modules since opening its Watts factory in 2024.
Standardization underpins the structure. Model/Z has developed standard configurations for affordable, LIHTC and student housing projects, so modules can be deployed across multiple projects with limited customization. The company says this interchangeability reduces the risk of financing modules before they are permanently installed at a specific site.
Two community development entities supplied the $32 million allocation
Greenline Community Development Fund, an affiliate of Denver-based Greenline Ventures, provided $18 million. New Markets Community Capital, a TELACU company, provided $14 million.
Dudley Ventures and Valley National Bank, through DV VNB Community Investment Fund, LLC, served as tax credit investor. Dudley Ventures also took part in Model/Z's first NMTC transaction.
First project to benefit is a 90-unit South Los Angeles development
The financing already supports 105th & Central, a 90-unit affordable development by Logos Faith Development on church-owned land in South Los Angeles. Model/Z founder Martin Muoto said the company hopes the structure can "demonstrate a model that others can replicate" across California and beyond.
Model/Z is an affiliate of SoLa Impact. Its Watts factory produces standardized steel-frame volumetric units, supported by an AI-assisted platform that accelerates site feasibility, design, permitting and financial analysis.