Section 42 Apartment Development

[Andrew Syrios]

Hey everyone, might be shooting in the dark here, but has anyone here done a Section 8 (or LIHTC) multifamily development project? I've looked at a few Section 42 properties we could have bought but I've never approached it from the development side and we have a potential opportunity to do so in front of us. If anyone has some pros/cons or do's/don'ts with it (or links they would recommend) I would very much appreciate it. Thanks!

[Greg Dickerson]

Originally posted by @Andrew Syrios:

Hey everyone, might be shooting in the dark here, but has anyone here done a Section 8 (or LIHTC) multifamily development project? I've looked at a few Section 42 properties we could have bought but I've never approached it from the development side and we have a potential opportunity to do so in front of us. If anyone has some pros/cons or do's/don'ts with it (or links they would recommend) I would very much appreciate it. Thanks!

Nothing special to lookout for. Development is development so that portion is straight forward.

The tax credit component is a function of time and cost as you have to apply for the program and credits are granted based on number of affordable units in the project and total cost of the project.

You should be able to find all the info and program details in your area and you may also be eligible for local, state and federal credits depending on your area and their incentive programs.

Affordable housing is a hot topic right now so you should be able to garner a lot of support, easily raise capital and get the project pushed through quicker than others.