Luque / Ikromov / Noseworthy Affordable Housing Development

Financial Feasibility, Tax Increment Financing and Tax Credits
1. Auflage 2019
ISBN: 978-3-030-04064-2
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 131 Seiten

Reihe: Economics and Finance (R0)

This book explains the nuts and bolts of affordable housing development. Divided into two complementary sections, the book first provides an overview of the effectiveness of existing federal and state housing programs in the United States, such as the LIHTC and TIF programs. In turn, the book’s second section presents an extensive discussion of and insights into the financial feasibility of an affordable real estate development project. Researchers, policymakers and organizations in the public, private and nonprofit sectors will find this book a valuable resource in addressing the concrete needs of affordable housing development. 

“Luque, Ikromov, and Noseworthy’s new book on Affordable Housing Development is a “must read” for all those seeking to address the growing and vexing problem of affordable housing supply.  The authors provide important insights and practical demonstration of important financial tools often necessary to the financial feasibility of such projects, including tax-increment financing and the Low-Income Housing Tax Credit.  Further, the authors provide important backdrop to the affordability crisis and homelessness. I highly recommend this book to all who seek both to articulate and enhance housing access.” 

By Stuart Gabriel, Arden Realty Chair, Professor of Finance and Director, Richard S. Ziman Center for Real Estate at UCLA

"Over several years Jaime Luque, Nuriddin Ikromov and William Noseworthy applied their analytical bent, and no small measure of empathy, to homelessness as actually experienced in Madison, Wisconsin – and they inspired multiple classes of urban economics students to join them. “Homelessness” is a complex web of issues affecting a spectrum of populations, from individuals struggling with addiction or emotional disorders, to families who’ve been dealt a bad hand in an often-unforgiving economy.  Read this book to follow Jaime, Nuriddin, and William as they evaluate a panoply of housing and social programs, complementing the usual top-down design perspective with practical analysis of the feasibility of actual developments and their effectiveness. Analytical but written for a broad audience, this book will be of interest to anyone running a low-income housing program, private and public developers, students, and any instructor designing a learning-by-doing course that blends rigor with real-world application to a local problem."

By Stephen Malpezzi, Professor Emeritus, James A. Graaskamp Center for Real Estate, Wisconsin School of Business, University of Wisconsin-Madison, and Dean, Weimer School of the Homer Hoyt Institute.

Autoren/Hrsg.

Luque, Jaime P.

Ikromov, Nuriddin

Noseworthy, William B.

Inhaltsverzeichnis

1;Preface;5
2;Acknowledgements;6
3;Contents;7
4;About the Authors;10
5;Chapter 1: Housing Affordability Crisis: The United States;12
5.1;The Case of Madison, Wisconsin;16
5.2;References;22
6;Chapter 2: Homelessness, Housing Public Policy and Urban Planning;24
6.1;Principles of Need and Creation of Urban Space;24
6.2;Development of Cities;25
6.3;Affordable Housing and Public Policy: Who Pays and Who Benefits?;27
6.4;Where Do We House the Homeless?;29
6.5;The Case of Madison, Wisconsin;32
6.6;The City of Madison´s Urban Policy and Development Initiatives;33
6.7;Local Policy At the County Level: Initiatives and Challenges;38
6.8;Conclusion;40
6.9;References;41
7;Chapter 3: The Low-Income Housing Tax Credit (LIHTC) Program;43
7.1;Introduction to LIHTC;43
7.2;How the LIHTC Program Is Administered at the State Level;47
7.3;WHEDA: How Wisconsin Does LIHTC;49
7.4;WHEDA Scoring and LIHTC Applications;51
7.5;Preparing for the WHEDA Application: Research;52
7.6;How Developers Can Use LIHTC in Practice;52
7.7;Establishing Site Control;54
7.8;Benefits of a Small Firm;56
7.9;Site Control and Zoning: Challenges for the Developer;58
7.10;References;59
8;Chapter 4: The Tax Increment Financing (TIF) Program;60
8.1;Introduction to TIF;60
8.2;TIF in the United States;61
8.3;Criticisms of the TIF Mechanism;62
8.4;Creation of Tax Increment Districts;64
8.5;The Review Process;67
8.6;TIF from the Developer´s Perspective;69
8.7;TIF from the Perspective of Policy Makers;71
8.8;Conclusion;72
8.9;References;73
9;Chapter 5: Housing the Homeless;74
9.1;Porchlight: An Introduction;74
9.2;Porchlight´s Considerations Regarding Housing Location and Size;75
9.3;Porchlight´s Considerations Regarding Housing Services;77
9.4;Emergency Shelters;78
9.5;Homeless Veterans;79
9.6;Chronic Homelessness;79
9.7;Breakdown of Homeless Individuals By Household Type in Madison;80
9.8;Free Mobility: Does Madison, WI, Attract Homeless From Other States?;80
9.9;Homeless as a Working Class: Barriers to Access Permanent Housing;82
9.10;Market Rents and Affordable Housing in Madison;83
9.11;The Way to Pay for Services for the Homeless Is to Run Affordable Housing Programs;86
9.12;Homeless Children;87
9.13;Conclusion;88
9.14;Reference;88
10;Chapter 6: Financial Feasibility Analysis: Planning for the Possible;89
10.1;Graaskamp´s Financial Feasibility Model;89
10.2;References;95
11;Chapter 7: Location, Location, Location;96
11.1;Numerical Example;98
11.2;Development Is Unlikely Without Subsidies;101
11.3;Conclusion;101
11.4;References;104
12;Chapter 8: The Critical Role of TIF, LIHTC, and City Grants;105
12.1;Financial Feasibility With and Without Subsidies;106
12.2;Tax Increment Financing Usually Does Not Make or Break a Project;107
12.3;Low-Income Housing Tax Credit Can Make a Huge Difference;110
12.4;A Financial Feasibility Model with TIF, LIHTC and City Subsidies;114
12.5;Conclusion;117
12.6;References;118
13;Chapter 9: Affordable Housing Development: Further Considerations for Developers;119
13.1;Why Non-profit Lenders Are Needed;119
13.2;An Example of a Non-profit Lender;120
13.3;Going Deeper: Cinnaire as an Example of a Lender;122
13.4;Conclusion;126
13.5;References;126
14;Chapter 10: Beyond Financing: The Process of Development;127
14.1;Developer´s Perspective;127
14.2;Madison and Local Need;129
14.3;At the County Level;132
14.4;References;134
15;References;135