Kyle Shoemaker on Forbes: Diversify Into Affordable Housing

When running a multifamily investment and management business, there is no shortage of problems and complications. So why would a multifamily owner welcome more complication such as buying a Low-Income Housing Tax Credit (LIHTC) or project-based Section 8 (Housing Assistance Payments Contract, or HAP) deal?

There are many reasons and misconceptions that have led to market-rate investors not considering affordable housing deals. But with the stark realities of the COVID-19 crisis, primarily that over 30 million Americans have lost their jobs as of mid-May, the demand for affordable housing will continue to grow. There are several affordable housing programs that a multifamily owner should have some familiarity with, and the LIHTC is one of the biggest.

Affordable housing investments may not work for every owner, but some of them are less complicated than many might think. As one of few investment real estate brokers exclusively focused on the affordable housing space, I’ve been afforded a perspective on how multifamily deals are made in many different forms, from market-rate, unrestricted sales to the most complicated LIHTC deals, where multiple levels of capital financing are joined from multiple government bodies. Let me explain a little bit more about the LIHTC and HAP programs before I dive into misconceptions about this type of multifamily investment. Click here to continue reading at Forbes.com

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