Affordable housing development can often be a risky proposition for developers. This is especially true of developers utilizing Low income Housing Tax Credits to finance new construction and acquisition/rehab projects. These projects often require multiple tiers of financing from federal, state, and local sources to be successful. However, in many states an application for 9% low Income housing tax credits is so competitive that the odds of a successful application may only be 10%-25%. Both for profit and non-profit developers will often be required to have an appraisal, market studies and critical needs assessments performed at a minium. In addition, most states incentivize developers to add green features which will often require the services of an architect to help organize and plan what types of features best support a given project. Add to that, the potential complex legal and or accounting issues that arise when mixing various affordable housing programs and you have quite a few vendors needed just to have an opportunity at success. Oh, and if you have not put together an application before or need assistance for the various programs than a consultant will be an absolute must. Yet, when these developments fail to receive the necessary funding needed to move forward the affordable housing developer has still created jobs.
The developers main goal is obviously to build or rehab the project and provide affordable housing, yet in these economic times when affordable housing budgets are cut and jobs are needed our politicians often fail to grasp that every single one of these developments supports existing jobs.
Take a look at our list of LIHTC Jobs to find an opportunity.