Large American cities generally suffer from a lack of workforce housing inventory, multi-family units targeted at residents above the LIHTC 60% AMI threshold, but residents in need of rents below market (typically those earning from 60%+ AMI to 100% AMI). Capital for these projects is typically secured (1) with considerable subsidy, which is in short supply and challenging to acquire or (2) financed largely like a market-rate development, which requires meaningful equity investment (and returns), which limits the affordability that can actually be achieved for residents. This panel explore solutions that have been secured using governmental and private partnership models, most commonly with large Public Housing Authorities, or even local governments. This Public Housing Authority or local government model, using Essential Housing Revenue Bonds, provides a means to finance acquisitions (and new construction) at scale around the country and provide meaningful affordability to workforce units in large and/or expensive rental markets.
Financing Solutions for the Missing Middle – Workforce Housing Financing Structures
