The need for affordable housing is great, with some estimates saying the nation needs more than 7 million additional units of affordable housing for low-income households.
The Low-Income Housing Tax Credit program is a leading financing tool for building new and preserving existing units of affordable housing. But the magnitude of the need for units means builders and local governments often must find other financing paths.
With this in mind, the New York Fed’s Community Development team wrote case studies of multifamily affordable housing developments in the Second District financed without Low-Income Housing Tax Credits.
The case studies focus on three properties: An 88-unit residential apartment in Schenectady, a 583-unit high-rise in Downtown Brooklyn, and a 283-unit building serving seniors in Jersey City.
These projects represent a range of characteristics: New development and preservation; fully affordable; and mixed income. They also showcase a variety of tools that make the economics of the deals work, possibly opening doors to similar financing for the development and preservation of affordable units elsewhere.
