Preserving Affordability: Acquisition/Rehab Transactions that Work
This article from April 2014's Tax Credit Advisor Magazine outlines programs and funding opportunities successfully being used to preserve afforable housing.
Developers continue preserving affordable rental housing by acquiring and rehabilitating existing multifamily properties in a variety of transactions. The federal low-income housing tax credit (LIHTC), often paired with tax-exempt financing, is a popular funding source for many preservation deals. But other subsidies and favorable governmental policies are often part of the mix as well.
Various studies point to a shrinking supply of affordable apartments nationwide but a growing demand. An improving economy has triggered higher conventional rents in many markets, more and more non-traditional cash buyers are chasing after affordable properties when they come up for sale, and there is a dwindling amount of federal, state, and local gap funds and subsidies needed to make preservation deals pencil out.
