Blueprint for October
The Future is in the Air
By Jessica Hoefer
3 min read
As fall blows in, we are nearing the end of our first full year back in person. And despite the constant turbulence, the industry has successfully convened several events/conferences over the course of the year.
Traveling to and participating in these events has been my first “official” foray into meeting with industry professionals as they network and share insights. From each event, there has been an emergence of innovative and thought-provoking information – suggestions on new collaborations, updates to existing programs, new incentives and so much more. And we want to share these new developments with you.
As a micro-indicator of the economy, the housing market forecasts for 2023 remain in flux. The key takeaways from this year are that the use of Essential Function Bonds, market studies, partnership agreements and combating volatile interest rates are a few of the trends and strategies we are likely to see in 2023. There is a little something for everyone.
Rising interest rates may be imperiling affordable housing (Housing USA), but there are some new approaches you should be aware of. “Over the past three years, a new financing product has paved the way for converting privately owned apartment complexes to 100 percent public, governmental ownership with no equity contribution. Tax-Exempt Essential Purpose Multifamily Housing Bonds…are being deployed in California and Texas to help build the stock of governmentally owned, much-needed affordable workforce housing,” writes Pamela Martineau in Tax-Exempt Essential Function Bonds.
Did you know that market feasibility studies are not just a requirement for federal and state financing programs, but an invaluable tool that ensures affordable projects are also marketable? Market Studies Can Ensure Marketability and Project Success shares perspectives from a market analyst, an investor and a state reviewer on guidelines, what else you should know and how best to use a market study.
In Breaking Ground, Jeff Mosley explains how, through a combination of mentorships, training and access to capital, Capital Impact Partners is breaking down racial barriers and expanding opportunities for developers of color through its Equitable Development Initiative, the Growing Diverse Housing Developers program and the Housing Equity Accelerator Fellowship. These three programs are creating opportunities for developers of color who have found it challenging to enter, grow and thrive in the affordable housing business.
While the goal of a Low Income Housing Tax Credit partnership is not to negotiate and execute a perfect partnership agreement, drafting an agreement that is fair and balanced, benefiting both sides, should always be the objective. In LIHTC Partnership Agreements (for Developers), John Gahan shares his self-professed old-timer’s hints for reviewing and tweaking investor agreements.
The winds of change moving the industry forward have begun to blow. Where will they lead?
Regards,
Jessica Hoefer
Editor-in-Chief
