The nation’s stock of both assisted and privately owned low-cost rentals includes many units at risk of loss.
For buyers intent on preserving affordability, purchase offers are often conditioned on obtaining new tax credits which can represent a delayed or uncertain execution. Combined with a lack of bridge or short term financing to close the acquisition, contracts are difficult to close and sellers choose more certain market executions. As a result many properties are disappearing from the workforce/affordable housing supply chain.
As these affordable properties disappear, more income challenged Americans are forced to find alternative and less desirable housing options.
Increase Cash Flow: Returns are in the form of cash distributions, not tax credits and losses.
Increase Cash: Quarterly distributions provide a positive impact to corporate P&L.
Increase Book Value: Property appreciation combined with quarterly cash returns provides above benchmark returns with a low risk profile.
Stabilized Assets: Elimination of construction and lease up risk inherent in new LIHTC and CRE transactions.