Many states have tried to offset the loss of federal funds by creating or renewing their own local housing trust funds or state housing tax credits to support new development.
Despite the rising cost of land, labor and materials, more developers are finding the financing tools needed to build new affordable housing.
“There is higher production in 2018 than 2017, thanks to a robust bond market—that has been driving a lot of activity,” says Peter Lawrence, director of public policy and government relations in the Washington, D.C. office of Novogradac Consulting.
To raise the capital needed to build an affordable housing project, developers typically need to pull together money from a long list of local, state and federal programs—starting with the most important tool to finance new affordable housing, the federal low-income housing tax credit (LIHTC).
Despite the rising cost of land, labor and materials, more developers are finding the financing tools needed to build new affordable housing.
“There is higher production in 2018 than 2017, thanks to a robust bond market—that has been driving a lot of activity,” says Peter Lawrence, director of public policy and government relations in the Washington, D.C. office of Novogradac Consulting.
To raise the capital needed to build an affordable housing project, developers typically need to pull together money from a long list of local, state and federal programs—starting with the most important tool to finance new affordable housing, the federal low-income housing tax credit (LIHTC).
In 2019, the prices investors were willing to pay for LIHTCs stabilized and even rose slightly. Developers also find the financing they need to build with help from state and local programs like soft financing programs or state housing tax credits. Bank loans also are helping developers put together deals.
