I am posting from Novogradac’s 2011 Affordable Housing and Low Income Housing Tax Credit (LIHTC) Conference in New Orleans. The conference is happening in the wake of significant proposed legislation that could impact available financing for affordable housing developments and recent Washington Post article criticizing the HOME Program.
In discussions with other attendees, I and others find it surprising that everyone does not support financing for affordable housing because the financing provides a direct boost to the aspects of the economy hit hardest by the recent recession while also helping those who need it the most, including low to middle income senior citizens and families. One attendee mentioned how much our Governor Jack Markell impressed him, when Governor Markell was recently visiting his company’s headquarters, because he “gets it” – affordable housing boosts jobs and the economy (no coincidence it is the theme of this year’s conference).
Separately, in discussions about Section 8 project based subsidies, the willingness of the Department of Housing and Urban Development (HUD) to allow funds in residual receipts accounts to be used for project expenses is consistently increasing, but others may have plans for those funds in the future. In other words, use them now to help the project if they are adding up.