New Opportunities and Challenges for Financing Affordable Housing
At the 2024 ULI Housing Opportunity Conference, experts discussed various tools and strategies to increase the production of affordable housing during the session, “Financing Tools to Make Affordable Deals Pencil.”
Opening Remarks
David Steinwedell, president and CEO of Affordable Central Texas, opened the panel by noting the opportunities that can arise during economic downturns. “This is my fourth recession. With each challenge comes an opportunity, especially the potential to get pricing with added affordability.” Affordable Central Texas is behind the $400 million Austin Housing Conservancy Fund.
Diversifying Multifamily Loan Programs
Kelly Boyer, president of Rose Community Capital (RCC), stressed the importance of diversifying lender offerings. RCC specializes in FHA-insured and USDA-guaranteed multifamily mortgages. Since being acquired by Jonathan Rose Companies in 2016, RCC has expanded from the Midwest to a national scope, introducing a bridge loan program to give developers and owners time to secure permanent financing and government subsidies.
Community Development Banking to Lift Low- and Moderate-Income Households
Katherine Groves, senior vice president and Texas market manager of PNC Bank's Community Development Banking, detailed efforts to uplift low- and moderate-income communities in Texas. PNC's team focuses on Community Reinvestment Act-eligible loans. Notably, PNC has committed $10 million to the Austin Housing Conservancy Fund. PNC's Community Benefits Plan aims to deliver $88 billion in home lending, small business lending, and other supportive initiatives by 2025.
Investing in Housing Stability
Dillon Lorda, director and portfolio manager at AEW Private Equity Group, emphasized long-term economic stability through the AEW Essential Housing Fund (EHF). EHF targets modest rent growth, low resident turnover, and stable operating costs, benefiting both residents and investors. Their investments include rent-restricted housing (e.g., LIHTC, Section 8), naturally occurring affordable housing, and manufactured housing.
Local Impact Through Collaborative Investments
Brian Allan “AJ” Jackson, president of JBG SMITH subsidiary LEO Impact Capital, discussed the Washington Housing Initiative (WHI). Funded by philanthropy and private investment, WHI is a partnership between Impact Pool and the Washington Housing Conservancy. By the end of 2022, Impact Pool had invested over $65 million to acquire 2,565 housing units at seven properties. Jackson underscored the importance of flexible capital that can move quickly to preserve long-term affordability in well-resourced neighborhoods.
These strategies and programs highlight multiple pathways for addressing the affordable housing crisis, illustrating innovative financial tools and partnership models designed to create and preserve affordable living spaces across the country.
