The Right Mix

2 min read

For many years, state housing agencies in their qualified allocation plans have strongly promoted the enrichment of new low-income housing tax credit projects with     services for residents. This trend has occurred in all types of LIHTC developments – those targeting families, seniors, and persons with special needs.

The resident services present in existing LIHTC properties vary widely: computer training, financial counseling, social programs, Zumba classes, nutrition and financial counseling, job skills training, and transportation, just to name a few.

The key to successful and effective resident services at a particular property merely is not having a large number of services, but rather providing those that are appropriate to the current group of residents and within the development’s budget.

To that end, in this month’s issue we discuss some of factors that can help owners and managers determine whether they have the right type and mix of resident services at a property and whether they are working. (“Resident Services,” p. 24)

On another front in the tax credit world, we report on the activity and trends in the low-income housing tax credit equity market, which is undergoing a shift. (“Changing Conditions,” p. 16) After many months of stability during which projected after-tax yields to investors from national multi-investor funds held in a tight cluster at 7% to 7.5%, returns on some new offerings are dipping below 7% and industry officials expect this trend to broaden in new funds closing this fall. The causes include fiercer competition for deals by syndicators and direct investors as well as continuing robust demand from investors.

Finally, the saying goes that man (and woman) does not live on bread alone – or on low-income housing tax credits. That mantra has been taken to heart by developer Tom Capp and Gorman & Company, which after some soul searching during the recession has moved beyond primarily LIHTC development to diversify both in the types of real estate projects undertaken as well as in the funding sources utilized, such as increasing the firm’s use of foreign investor capital. (“The Diversification Strategy,” p. 32)

Just as with resident services, Capp and Gorman & Company are charting a course for current and future success by having the right mix of business and tools. And that is making all the difference.


Enjoy the issue.