_______________________________________________________________________________________ Low-Income Housing
on budgets and project timelines to extend. It is no longer a given that a developer will be blessed with multiple investor offers to negotiate among. Instead, several factors- including reliance on relationships, a well-thought-out project, and a history of successful projects- are being considered now more than ever.
Historically, developers have attempted to layer various credits within a project to increase investor interest- for example, combining state low-income housing credits, historic tax credits, or brownfield credits. While this strategy can increase financial feasibility, the current climate of investor hesitation means that multiple credits often complicate and prolong the process rather than streamline it.
Despite these headwinds, mission-driven not-for-profit developers remain undeterred. They are not only advancing their current projects but also actively pursuing new sites to better serve their communities. One successful strategy has been forming partnerships with mental health service providers, integrating supportive housing with affordable units in a single development. This approach diversifies funding sources, strengthens project viability, and provides service organizations with dedicated space to reach their target populations.
Not-for-profit developers are also adjusting expectations to align with the current landscape. They are recalibrating timelines, adapting to lower investor pay-in rates, and finding creative ways to stretch limited resources. Their persistence reflects the same spirit as the little engine- pressing forward not because the climb is easy but because the destination is worth the effort.
LIHTC is more than a financing tool- it is a symbol of resilience and hope. Even when faced with rising costs, policy shifts, and funding gaps, developers continue to climb the steep hill of affordable housing challenges. Like the little engine that could, developers in the affordable housing industry continuously remind us that persistence and collaboration can turn daunting obstacles into achievable victories.
With every‘ I think I can,’ developers, investors, and communities push forward, proving that determination fuels progress. Each project built through LIHTC is not just bricks and mortar but a testament to the belief that safe, affordable housing is possible for all. And just as the little engine reached the top of the mountain, the LIHTC carries the affordable housing industry upward- one project, one family, one community at a time. ■
Danielle Katz www. barclaydamon. com
Danielle Katz is counsel at law firm Barclay Damon, where she advises owners, developers, service providers, and investors in affordable housing development and historic rehabilitation on corporate and tax credit transactions. With approximately 300 attorneys, Barclay Damon is a leading regional law firm that operates from a strategic platform of offices in Albany, Boston, Buffalo, New Haven, New York City, Rochester, Syracuse, Washington DC, and Toronto. The firm serves clients across the country and, for some practices, provides US legal services around the globe.
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