The Capital Stack of an Affordable Housing Project

[Matt J.]

We all know most markets in the country are suffering from a huge shortage of affordable housing. I would assume there are some people on here who have gone down the path of developing affordable housing projects for their respective markets. 

How does the capital stack look on most of these? Are you mainly partnering with local municipalities and grant programs and then bringing in a lender? Private investment in these projects seems like a challenge as I can't see how they'd get paid back on their principal. 

I'd love to hear how people make these projects work as I want to help provide more affordable housing for the markets in our area in the Twin Cities, Duluth, and the Brainerd Lakes Area.