Why is there an increased demand for affordable housing?
Florida’s attractive market has long made it a major player in commercial real estate. With a desirable climate and no state income tax, Florida’s population has increased by 14.6% from 2010 to 2020 according to data collected by the 2020 U.S. Census. Even with the COVID-19 pandemic, Florida’s growth did not slow.
This continual growth causes housing prices and monthly rents to continue to climb – monthly rents in Miami, Orlando, and Tampa are increasing at a steadier rate than almost any other major city in the U.S. According to an article written by The Palm Beach Post, the median home price in Florida has risen 99.3% since 2012.
Unfortunately, incomes have not increased at the same rate which makes the need for affordable housing greater for those in the workforce, the elderly, people with disabilities, and income-restricted individuals.
THE IMPORTANCE OF ACQUIRING LOW-INCOME HOUSING TAX CREDITS (LIHTC).
Affordable housing construction in Florida is a strong and growing market. The Biden Administration has recently made changes that will further boost the availability of affordable housing and will increase the LIHTC cap for Freddie Mac and Fannie Mae. With the steadily increasing housing needs, developers look to the low-income housing tax credit (LIHTC) to secure and finance their development plans. The utilization of LIHTC requires a very stringent due diligence process as well as specific requirements that must be met.
HOW MORAN CONSTRUCTION CONSULTANTS CAN HELP YOUR NEXT AFFORDABLE HOUSING PROJECT.
Moran Construction Consultants has long-standing expertise in assisting lenders, syndicators, and investors in mitigating risks associated with affordable housing projects (both renovations and new construction) in Florida. We are one of seven consulting firms approved by Florida Housing Finance Corporation to provide Property Condition Assessments, Upfront Plan & Cost Reviews, and Monthly Construction Monitoring.
We tailor our reporting to provide extra oversight regarding the FHFC Features & Amenities. During the Due Diligence phase, we will verify that all required Features & Amenities are included in the Contract Documents. Once construction commences, we will monitor those Features & Amenities to make sure they are completed to ensure the appropriate tax credits are gained.
Our existing relationships with multiple developers and contractors in the Florida market allow us to proactively address any LIHTC related issues during due diligence as well as throughout construction. Call us at 225-351-2003 or contact us online to learn more about our construction loan monitoring services. Experience peace of mind knowing that your investment is protected.
By Wesley Young (Florida Region Consultant)
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