NHPF Industry Report
Survey Executive Summary
In June 2024, NHPF, with research partner Jasper Colin, conducted a survey exploring three critical ”new realities“ identified by NHPF developers, asset managers, construction professionals, and others: 1. New Financing Strategies: For the past 30+ years, the Low-Income Housing Tax Credit (LIHTC) has been the most successful tool in creating affordable housing. For many though, it is time to expand beyond LIHTC and look at alternative financing options. Respondents were asked to rank, by effectiveness, some newer concepts available to affordable housing developers. 2. Boosting Sustainability: One of the greatest issues affecting affordable housing rehabilitation and construction is the need to build for a future with fewer resources and a need for greater sustainability. Survey-takers were asked to rank recent innovations for their ability to increase the supply of affordable housing while remaining sustainable and environmentally responsible. 3. P erceptions of Race and Crime: It is a reality that we are experiencing a rise in violence and crime in many cities where affordable housing is most needed. The survey asked respondents to rank, in order, how effective key affordable housing attributes are to reducing racial inequality and crime in urban areas and other proactive measures that should be implemented. Over 200 individuals from the financial services, real estate development, not-for-profit, and government sectors were surveyed to determine which practices, reforms, and strategies were deemed most promising for affordable housing viability. The report provides a comprehensive summary of the key findings and insights for increasing the supply, sustainability, and safety of affordable housing.
Top Takeaway: Multiple Strategies Needed
The key takeaway from this study is that no single strategy is enough. The nearly equal ranking of strategies across all three of the above categories underscores the magnitude of the challenge. * The industry’s primary task now is to secure support for and ultimately implement as many of these efforts as possible. KEY FINDINGS 1. Financing Innovations: LIHTC is still the affordable housing industry’s strongest funding mechanism, however, those surveyed are very open to newer methods like equity crowdfunding, and public-private partnerships (PPP). 2. Eliminating Barriers: Addressing the high costs of land, materials, and labor—along with restrictive zoning laws—is critical. These barriers have long hindered the development of affordable housing, particularly in urban areas where demand—and often crime rates—are highest, adding hurdles to housing those who need it most. 3. Onsite Resident Services: Employment readiness programs, which include job training, career counseling, childcare, and transportation services, are seen as the most effective way to reduce racial inequality and crime.
2 • THE NHP FOUNDATION 2024 SYMPOSIUM: INDUSTRY REPORT
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