Affordable Housing Development Capital Stack Structures

[Manuel Angeles]

When developing affordable housing in California (more specifically Los Angeles), how complicated is it to raise capital using subsidies?

Is it common for developers to use subsidies to cover 100% of the construction costs without needing to obtaining debt or raising equity?

Or do they leverage debt, and use the subsidies to cover the equity needed?

When dealing with federal, state, and local NOFA (notice of funds availabilities), do government funds allocated for affordable housing often get depleted from too many developers requesting funds for new projects?

When a developer can't obtain subsidies for their affordable housing projects, do they just wait until the next round of subsidies availability?