The Need for Affordable Housing
There needs to be 328,000 new affordable apartments each year in order to meet demand. To put it mildly, that’s a lot of apartments.
Its safe to say, America has turned into a renter nation. The 2008 financial crisis contributed to much of this.
Most people see this statistic as a problem. Which don’t get me wrong, it is a major problem. But for those who are into solving problems, this is a major opportunity in helping solve the crisis of affordable housing.
Not The Projects
First, people must understand that “affordable housing” does not mean the projects or the hood. That is a major misconception.
It simply means housing for people paying less than 30% of their post tax monthly income on housing.
These affordable housing units are full of working people who simply meet a income threshold that qualifies them for an affordable unit. These working class people range anywhere from teachers to certain medical professionals depending on the market and area median income.
So no, affordable housing has no intention of being the projects.
Solving the Problem
There are government incentive programs targeting private investors to make investments in affordable housing.
HUD, The United States Department of Housing and Urban Development created programs such as Low Income Housing Tax Credits, VA Housing Voucher, USDA Rural Development and more.
The most competitive program is the Low Income Housing Tax Credit. This program allows the government to give a dollar for dollar tax credit to investors in exchange for affordable rents. There’s more to it such as the area median income and qualification thresholds, but that’s the gist of it.
The thing about government programs is that there’s only so much money to go around to combat affordable housing.
My hope is for affordable housing to be in reach of everyone. I believe everyone should have a good safe clean and affordable place to stay.
My contribution as a real estate investor is more than financial benefits. Its how many people am I really helping at the end of the day that counts.
For that matter, affordable housing will be a matter i’ll continue to fight for people who need it most.