The Guru Is In Archives

So long have the Historic and Low Income Housing Tax Credits existed substantively unchanged that we take both for granted, not just in their existence but also in their particulars – procedural switches that were set one way for the Historic Credit, another for the LIHTC.

Just to our north lies a country whose population, eight percent less than California’s, is spread out over a land two percent larger than America, a country whose dominant language is the same as ours, and whose housing challenges are a refracted mirror image of ours at home, with fragments that are like ours but assembled in configurations entirely different from ours.

If asset management is the core competency of durable developers and investors, then asset valuation is a core skill of durable asset managers, and one that’s often under-resourced.

When the conversation turns to high cost, we wish it would go away. We are defensive, hesitant, technical and long-winded; modes of argument that make the industry look like complacent apologists for the status quo. Though our mode of argument hasn’t cost us yet, if we allow others to frame the debate, inevitably it will.

For every employee seeking affordable housing, there is an employer wishing the employee finds it – and not knowing how it can be created. Yet what employers can do is enormous, if we show them how to deploy the resources they already have.

It is the curse of the expert to be unaware of what regular folks don’t know about his or her subject.

The voluntary public housing revolution has yet to cost HUD a dollar: in fact, the Rental Assistance Demonstration (RAD) has leveraged $8.90 for every dollar of public housing funds deployed, generating $3.9 billion of construction investment on the 59,000 apartments that have closed, with another 126,000 on deck, which together are liberating 185,000 apartments from the 1.3 million home public housing inventory and awakening the hitherto squelched or sublimated entre- preneurial capacity of public housing authorities, many of whom may never have known they had it in them.

Because the cycle of poverty is generational, to break it we must adopt a generational approach, enlisting the whole family so that those who are older can help those who are younger aspire to, and achieve, more than their parents did.

Not for the last time, President-elect Trump confounded expectations when he nominated as HUD secretary a pediatric neurosurgeon and unsuccessful Presidential candidate.

Among those destabilized by the aftershocks from our recent presidential election are many of my colleagues and friends, for whom the conjoining of ‘tax reform’ and ‘Trump’ have had an effect on their check-writing hands similar to a crowbar whacking their ulnar nerves.

Knowing as I do that you are on tenterhooks to read my monthly Guru column, allow me to advise you on how your housing policy can be a centerpiece of your delivery of the vision on which you campaigned – a land of economic and social opportunity for all Americans.

In early October, the Urban Land Institute’s (ULI) Terwilliger Center for Housing and the National Association of Affordable Housing Lenders (NAAHL) co-hosted a day-long symposium/roundtable on what we decided by the end of the day just might be an emerging asset class whose preservation is integral to the success of America’s cities and the urban economy.