Puerto Rico: Jewel of a Low-Income Housing Market
By Caitlin Jones
1 min read
Tax Credit Advisor, September 2010: For most Americans, Puerto Rico conjures up images of glorious white beaches and clear seas. But, in fact, the island has a significant low-income population that creates consistent robust demand for completed low-income housing tax credit units.
“The demand far exceeds the supply,” says George Joyner, executive director of the Puerto Rico Housing Finance Authority (PRHFA), which allocates 9% housing credits, issues bonds, makes loans, and manages the federal HOME program.”There are no empty projects; all the projects are fully occupied – 90-plus percent occupancy rates with waiting lists.”
Developing LIHTC projects in Puerto Rico can be a challenge because of special circumstances. But there are advantages as well, providing attractive investment opportunities for syndicators and equity investors, say participants.
David Salzman, of The Richman Group, Greenwich, Conn., a long-time syndicator of tax credit projects in Puerto Rico, attests to the strong renter demand for tax credit units on the island, as does San Juan-based LIHTC developer Carlos M. Colón, Jr. Colón, joined by his son, Carlos M. Colón McFarland, and Engineer Ricardo Sol‡, has completed five LIHTC projects since 1995 and is building a sixth – all 9% deals.
