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BFL’s experience provides the risk management necessary to assure project success. –

becomes eligible for tax credits by forming a partnership or LLC with the equity investor. Rental fees are set by HUD. Affordable housing may be affordable to the renter – but there is no cost-cutting in the construction of this type of housing. “People call affordable housing low-cost housing and that’s not true. Comparatively speaking, it still costs the same amount of money to build. It’s the rental amount paid by the tenant that makes it ‘affordable.’ Affordable housing relies heavily on government subsidy to build.” Typically, developers will set their rent and income levels between 40 and 60 percent of the area median income

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Julie Culver, President, Partners for Housing Solutions so they are targeting a particular segment of the population that is considered low income. “I welcome the opportunity to explain the housing programs to nonprofit organizations because there is a learning curve. I can provide information and some direction that will help them make a decision about entering the affordable housing market. The differences between affordable and market rate housing, especially with a program such as the Federal Low Income Housing Tax Credits, is very complex and the financial structures are very different.” Culver points out what most experienced real estate investors accept – that

there is always risk associated with real estate development. But with affordable housing, it’s pretty much a win-win for all. “Rents are kept affordable for 15 years, that’s mandatory, then 15 more years by extension. It really helps the economy. It puts people to work and provides long-term affordable housing for the community. It’s also good for the nonprofit organization – they become more invested in the community.” She’s passionate about this affordable housing venture. “This really is where my heart is.”

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> > > BizTucson 195 Winter Winter 2014 2014

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The Tucson Region's Business Magazine

Biztucsonwinter2014flip  

The Tucson Region's Business Magazine