In the world of multifamily real estate, few topics garner as much attention and controversy as affordable housing. From rezoning to rent caps and inclusionary mandates, government involvement plays a significant role in this sector. To help owners, investors, and developers navigate these complexities, Berkadia is hosting a webinar titled “The Politics of Housing Affordability.”
Featuring Sharon Wilson Géno (President of the National Multifamily Housing Council) discussing the national housing crisis and Mary Ann King (Co-Head of Institutional Solutions at Berkadia) moderating a discussion on California’s market trends, this webinar aims to provide valuable insights for industry professionals. In an interview with Connect CRE prior to the event, King shared her expertise on affordable housing.
Firstly defined by King as a broad term encompassing various types of housing products such as LIHTC tax credit projects or workforce units that become more affordable over time – she emphasized that there is no one-size-fits-all solution for addressing affordability issues.
One key federal tool in developing “affordable units” is the Low-Income Housing Tax Credit program which offers subsidies in exchange for rent restrictions. However due to rising development costs – reaching up to $750k per unit on West Coast projects – it has become increasingly challenging for developers to build low-income properties without additional support from programs like LIHTC.
King also highlighted California’s status as a bellwether state when it comes regulations affecting landlords’ ability collect contract rents – often referred collectively under “rent control.” She noted how these measures have had negative impacts on investment opportunities within our state while failing address supply shortages; adding that similar bills were introduced across 70 states seeking either introduce or tighten existing laws around rent control.
She concluded by emphasizing how important collaboration between stakeholders will be towards finding long-term solutions rather than quick fixes like implementing stricter rental regulations which could ultimately harm communities nationwide; making clear why events like their upcoming webinar are so crucial in addressing the national problem of affordable housing.
