Latest news with #Low-IncomeHousingTaxCredit
NBC News
3 days ago
- Business
- NBC News
Real estate developers say affordable housing could soon become more profitable
Whether it's in the for-sale or rental market, the affordable housing crisis is only getting worse. There is simply not enough supply, especially in the apartment market, where developers have said it's just too expensive to put up quality, low-income housing. They cite rising costs for land, materials and labor, as well as increasingly restrictive zoning regulations. So-called NIMBYism (an acronym for 'not in my backyard'), is also on the rise, with residents fighting affordable housing in their neighborhoods, where home values have soared in the past five years. 'This is a tough time, I think. All of real estate is being challenged by higher interest rates and by higher construction costs, and, by the way, the building department requirements and all the frictions that are making real estate difficult,' said Jonathan Rose, founder and CEO of the Jonathan Rose Companies, a real estate planning, development and investment firm. 'But there's also a lot of support, and our job is to weave the pathway in between the complexities, the challenges and the opportunities and find the pathway through,' he said. Developers like Rose just got some more of that support from the recently passed tax and spending bill. It expanded the Low-Income Housing Tax Credit, by increasing the amount of credits available and lowering the financing requirements. Specifically, the legislation permanently increased the 9% credit allocation to states by 12%. Developers sell these credits to investors in order to help finance their projects. 'It's a big boost for the creation of more affordable housing. In fact, the United States has a shortage of about 10 million units. This won't solve the whole 10 million unit problem, but it'll be a big help,' said Rose, adding that he sees a growing opportunity for investors in the space. Affordable housing advocates applauded the bill's passage, saying that the LIHTC remains the nation's most effective tool for building and preserving affordable rental housing. 'This legislation delivers a significant expansion of the credit by incorporating key elements of the Affordable Housing Credit Improvement Act, aimed at boosting the supply of rental homes across urban, rural and tribal communities,' said David Dworkin, president and CEO of the National Housing Conference, in a release. Dworkin pointed both to the expansion of the credit as well as changes to another tax credit for developers that would make it easier to qualify for the benefit. 'Together, these changes are expected to produce or preserve more than 1 million additional affordable rental homes between 2026 and 2035,' Dworkin said. There does appear to be strong investor demand in the affordable space, both in new development and renovation. The Jonathan Rose Company recently closed a $660 million impact fund, 'dedicated to acquiring, preserving, and enhancing affordable and mixed-income multifamily housing in high-demand urban markets across the United States,' according to a release. Rose said he is seeing increased interest in housing-related investments from family offices and foundations. There is, however, a new wrench in the works. The Trump administration has proposed a $27 billion cut in federal rental assistance programs for low-income tenants. That is reportedly already causing some lenders to pull back. The cut would need to be approved by Congress, and Rose notes that the House has had longstanding bipartisan support for funding affordable housing. To his point, the Senate Committee on Banking, Housing and Urban Affairs announced Friday it is moving forward on new bipartisan legislation to expand housing supply and address affordability. The package includes removing regulatory barriers to housing development and providing funds for communities that are building more housing that can be used for water and sewer infrastructure. The legislation, however, is aimed more at making for-sale housing more affordable and less at helping build more low-income rental housing. And even still, the new tax incentives for rentals won't help NIMBYism, which appears to be rising right along with home values. Even mixed-use buildings, which have a small percentage of units designated as affordable, are seeing pushback from neighbors concerned that any such housing will damage current and future home values. Even before its expansion, the LIHTC gave developers incentives for more mixed-income buildings, with certain units designated for affordable housing and others at higher price points. Rose said this type of higher-quality, better designed, greener developments benefit owners in the long run by lowering operating and capital costs. 'One of the reasons why communities oppose affordable housing is because a lot of affordable housing — it was built in the '60s, '70s and early '80s — was cheap and ugly, and I wouldn't want it in my neighborhood either,' said Rose. 'We're deeply committed to creating beautiful buildings.'
CNBC
3 days ago
- Business
- CNBC
Real estate developers say affordable housing could soon become more profitable
Whether it's in the for-sale or rental market, the affordable housing crisis is only getting worse. There is simply not enough supply, especially in the apartment market, where developers have said it's just too expensive to put up quality, low-income housing. They cite rising costs for land, materials and labor, as well as increasingly restrictive zoning regulations. So-called NIMBYism (an acronym for "not in my backyard"), is also on the rise, with residents fighting affordable housing in their neighborhoods, where home values have soared in the past five years. "This is a tough time, I think. All of real estate is being challenged by higher interest rates and by higher construction costs, and, by the way, the building department requirements and all the frictions that are making real estate difficult," said Jonathan Rose, founder and CEO of the Jonathan Rose Companies, a real estate planning, development and investment firm. "But there's also a lot of support, and our job is to weave the pathway in between the complexities, the challenges and the opportunities and find the pathway through," he said. CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. Subscribe here to get access today. Developers like Rose just got some more of that support from the recently passed tax and spending bill. It expanded the Low-Income Housing Tax Credit, by increasing the amount of credits available and lowering the financing requirements. Specifically, the legislation permanently increased the 9% credit allocation to states by 12%. Developers sell these credits to investors in order to help finance their projects. "It's a big boost for the creation of more affordable housing. In fact, the United States has a shortage of about 10 million units. This won't solve the whole 10 million unit problem, but it'll be a big help," said Rose, adding that he sees a growing opportunity for investors in the space. Affordable housing advocates applauded the bill's passage, saying that the LIHTC remains the nation's most effective tool for building and preserving affordable rental housing. "This legislation delivers a significant expansion of the credit by incorporating key elements of the Affordable Housing Credit Improvement Act, aimed at boosting the supply of rental homes across urban, rural and tribal communities," said David Dworkin, president and CEO of the National Housing Conference, in a release. Dworkin pointed both to the expansion of the credit as well as changes to another tax credit for developers that would make it easier to qualify for the benefit. "Together, these changes are expected to produce or preserve more than 1 million additional affordable rental homes between 2026 and 2035," Dworkin said. There does appear to be strong investor demand in the affordable space, both in new development and renovation. The Jonathan Rose Company recently closed a $660 million impact fund, "dedicated to acquiring, preserving, and enhancing affordable and mixed-income multifamily housing in high-demand urban markets across the United States," according to a release. Rose said he is seeing increased interest in housing-related investments from family offices and foundations. There is, however, a new wrench in the works. The Trump administration has proposed a $27 billion cut in federal rental assistance programs for low-income tenants. That is reportedly already causing some lenders to pull back. The cut would need to be approved by Congress, and Rose notes that the House has had longstanding bipartisan support for funding affordable housing. To his point, the Senate Committee on Banking, Housing and Urban Affairs announced Friday it is moving forward on new bipartisan legislation to expand housing supply and address affordability. The package includes removing regulatory barriers to housing development and providing funds for communities that are building more housing that can be used for water and sewer infrastructure. The legislation, however, is aimed more at making for-sale housing more affordable and less at helping build more low-income rental housing. And even still, the new tax incentives for rentals won't help NIMBYism, which appears to be rising right along with home values. Even mixed-use buildings, which have a small percentage of units designated as affordable, are seeing pushback from neighbors concerned that any such housing will damage current and future home values. Even before its expansion, the LIHTC gave developers incentives for more mixed-income buildings, with certain units designated for affordable housing and others at higher price points. Rose said this type of higher-quality, better designed, greener developments benefit owners in the long run by lowering operating and capital costs. "One of the reasons why communities oppose affordable housing is because a lot of affordable housing – it was built in the '60s, '70s and early '80s – was cheap and ugly, and I wouldn't want it in my neighborhood either," said Rose. "We're deeply committed to creating beautiful buildings."
CNBC
3 days ago
- Business
- CNBC
Property Play: One developer's bet on affordable housing that's sustainable and scalable
CNBC Property Play brings you interviews with some of the biggest names in real estate, touching on everything from commercial and residential to finance and the mortgage markets, innovation in the industry and the growing risk to assets and operations from climate change. Amid high interest rates, rising construction costs and fierce community pushback, one veteran developer is cutting through the noise with a clear mission: build high-quality, affordable and energy-efficient housing at scale. CNBC's Diana Olick sits down with Jonathan Rose, founder and CEO of the Jonathan Rose Companies, as he breaks down how the newly expanded Low-Income Housing Tax Credit is unlocking long-stalled projects, why green design is good business, and how thoughtful development can deliver real returns — both financial and social. Watch the full interview, and sign up to receive the weekly Property Play newsletter, straight to your inbox.
Business Wire
4 days ago
- Business
- Business Wire
Western Alliance Bank Teams Up With FHLBank San Francisco to Award the Yavapai-Apache Nation $800,000 Grant
PHOENIX--(BUSINESS WIRE)-- Western Alliance Bank today announced, in collaboration with the Federal Home Loan Bank of San Francisco (FHLBank San Francisco), an $800,000 grant awarded to the Yavapai-Apache Nation to support capacity building for affordable housing development. Western Alliance Bank Teams Up With FHLBank San Francisco to Award the Yavapai-Apache Nation $800,000 Grant This grant funding will support Yavapai-Apache Nation Tribal Housing (YANTH)'s construction of Yavapai-Apache Homes IX. This 38-unit new construction project offers a mix of two-bedroom duplexes and three- and four-bedroom single-family homes on Tribal trust land in the Tunlii community on the Yavapai-Apache Reservation in Camp Verde, Arizona. 'Western Alliance Bank recognizes that it is essential for Tribal members to have a safe, affordable place to call home,' said Aidan Tracey, assistant vice president of portfolio management for Western Alliance Bank's Affordable Housing Investments Group. 'There is strong demand for quality, affordable housing for members of the Yavapai-Apache Nation. We are proud to play a role in securing the well-being and stability of these communities with this step toward addressing housing needs for the Nation.' In this phase of the project, 14 units are designated for households with annual incomes up to 30% of Area Median Income (AMI), 11 units for households with annual incomes up to 50% AMI, five units for households with annual incomes up to 60% AMI, and eight units for households up to 80% AMI. The Project also includes a community center for resident use. All of the units are committed for eventual tenant ownership at the end of the 15-year Low-Income Housing Tax Credit (LIHTC) compliance period. As a member bank of the FHLBank San Francisco, Western Alliance Bank sponsored the Yavapai-Apache Nation's application to help secure this much-needed funding. Acting in a fiduciary capacity, the Western Alliance Affordable Housing Investments Group supported the Nation by facilitating the disbursement of funds, ensuring compliance with program requirements. The grant was made possible through voluntary funding from FHLBank San Francisco, which supports affordable housing and economic development in local communities across Arizona, California and Nevada. Western Alliance Bank remains committed to building strong local partnerships that support affordable housing, economic development and financial empowerment in our communities. About Western Alliance Bank With more than $85 billion in assets, Western Alliance Bancorporation is one of the country's top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, offers a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by banking and mortgage experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2024 by American Banker and Bank Director and receiving #1 rankings on Extel's (formerly Institutional Investor's) All-America Executive Team Midcap Banks 2024 for Best CEO, Best CFO and Best Company Board of Directors. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit Western Alliance Bank. About FHLBank San Francisco The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant and resilient. About the Yavapai-Apache Nation The Yavapai-Apache Nation is a federally recognized tribal government located in the Verde Valley of central Arizona, encompassing five tribal communities: Tunlii, Middle Verde, Rimrock, Camp Verde and Clarkdale. With approximately 2,600 enrolled members, the Nation is committed to strengthening the well-being of its people through investments in housing, healthcare, education and cultural preservation.
Business Wire
15-07-2025
- Business
- Business Wire
Guardian Doubles Washington Presence with Addition of Nine HUD Communities
PORTLAND, Ore.--(BUSINESS WIRE)--Guardian, a leader in Pacific Northwest multifamily property operations, is proud to announce it assumed management of nine HUD-subsidized apartment communities serving low-income seniors and families across Washington. 'This expansion reflects our continued commitment to providing housing for all and strengthens our ability to serve more Washington housing communities with the care and attention they deserve.' Tom Brenneke, President, Guardian Share The transition includes a total of 1,300 apartment homes located in nine counties, spanning from Vancouver to Port Townsend and Spokane to Chehalis, marking a significant expansion of Guardian's affordable housing management portfolio. These communities provide affordable housing options for seniors and families throughout Washington. The phased transition took effect on February 1, 2025, for four communities, and April 1, 2025, for the remaining five. With this addition, Guardian doubled its presence in Washington, and the Evergreen State now makes up 20% of its managed portfolio. 'We're honored to be a trusted partner in preserving housing that helps these communities thrive,' said Tom Brenneke, President of Guardian. 'This expansion reflects our continued commitment to providing housing for all and strengthens our ability to serve more Washington housing communities with the care and attention they deserve.' Guardian brings more than 20 years of experience in the management of affordable housing, including Low-Income Housing Tax Credit (LIHTC) and HUD-subsidized properties. As property manager, Guardian will oversee all operational aspects of the nine communities, including compliance, maintenance, marketing, and resident support, with a focus on supporting long-term housing preservation. About Guardian Guardian is a developer, owner, and operator of multifamily properties, providing innovative real estate solutions dedicated to community and housing for all. Based in the Pacific Northwest, our customer-focused team is committed to supporting and lifting the communities we serve. Since 2002, Guardian has developed or acquired 11,000 multifamily units and 350,000 square feet of commercial space. With more than 450 team members, our management portfolio consists of 135 communities across four states. For more information, visit
