AFFORDABLE HOUSING

At almost every level, in either the private sector or the public sector, most individuals, are sensitized to the need for clean, safe modern affordable housing. Unfortunately, in most cases, these same individuals are unable to provide a definition of affordable housing, have no knowledge of how that housing can be produced, how that housing will be operated and maintained on a long term basis, or who it will serve.

In our society today, there are viable constituencies needing affordable housing assistance, these groups range from the homeless to families with earnings at as much as 100% of Area Median Income (AMI). It is neither viable nor feasible for a single company to be able, on a long-term basis, to service all of these various constituencies. Likewise, the needs and challenges of these various groups will be different.

PARADIGM sees its role as working primarily with for-profit enterprises, although we do maintain relationships with a number of 501(c)(3), non-profit organizations. Therefore, we focus our affordable housing efforts on projects that serve families whose annual income approximates 50% to 60% of AMI. The nature of this undertaking normally utilizes tax-exempt municipal bond financing, whether the property is a “mixed income” property or a one hundred percent “restricted income” property. Additionally, with most projects where the restricted income units are at least 60% of the total project units, the use of tax credit equity is justified and utilized.

The development of this type of affordable housing, whether through ground up construction or acquisition/rehab, represents a viable opportunity given the demand for the product and the public purpose commitment and benefit of this type of development. However, the unique nature of these assets requires very specific analysis with respect to property location, the relationship of AMI to projected rents, the availability of municipal bond cap, community acceptability, and operating and compliance issues.

We at PARADIGM are knowledgeable and experienced in all aspects of affordable housing legislation, trends, legal requirements, analysis, acquisition, compliance and operations. In the last ten years our principal has coordinated the acquisition, development, financing and compliance, and has participated in monitoring of the operations of 28 projects containing affordable housing units structured utilizing tax credit equity and tax exempt municipal bond debt.

Additionally, in the same timeframe, he has coordinated the review, analysis, acquisition, financing and closing of approximately 30 mixed income projects consisting of more than 10,000 units wherein at least 20% of each project’s units were set aside for low income families earning no more than 50% of AMI, and wherein tax exempt municipal bond debt financing was utilized.

If you are looking to, or already, participate in the affordable housing arena, PARADIGM can assist you and will add value.