Firm Asks OK for Low-Cost Housing Partnership : Investment: WNC & Associates tells the Securities and Exchange Commission it hopes to raise up to $20 million.

Moving to take advantage of the extended federal tax credit for low-income housing investments, an Orange County real estate investment firm is seeking permission for a partnership offering to raise up to $20 million to build low-income apartments in California.

In a preliminary prospectus filed with the Securities and Exchange Commission, WNC & Associates of Costa Mesa said it wants to sell 20,000 limited-partnership units in a new fund, WNC California Housing Tax Credits II, beginning in January.

WNC & Associates is an 18-year-old firm specializing in tax credit investments for low-income housing. The company’s funds typically raise equity money for builders, who operate the projects, while providing state and federal tax credits for investors.

The proposed new fund would be used to help build apartments only within California, said Will N. Cooper Jr., director of business development for the firm and son of founder Wilfred N. Cooper.

While apartment development in the state has been slowed by stagnant rents and rising land and construction costs that have slashed returns for most investors, limited partnerships such as WNC’s do not depend on income from a project.

Instead, investors receive investment tax credits for up to 10 years.

Cooper said the proposed new offering, using both California and federal tax credits, will provide an annual tax credit of 15.5% to 16.5%. The exact rate depends on when the fund is closed.

WNC works mainly with developers using the federal farmers home financing program to build apartments in rural communities of 5,000 to 10,000 residents on the fringe of larger cities.