Financing and developing affordable housing is challenging – especially in dense urban areas like the Washington, DC, metro region. To become more nimble in today’s competitive market, AHC Inc’s multifamily development team is creating innovative financing strategies that go beyond traditional affordable housing tools.
In Arlington, VA, AHC partnered with such organizations as Freddie Mac, Arlington County and the Low-Income Investment Fund (LIIF) to create financing structures that did not rely on the traditional affordable housing tools of Low Income Housing Tax Credits or tax-exempt bonds. The strategy helped AHC move quickly in a competitive marketplace to successfully preserve two mixed-income properties, The Serrano and The Spectrum, with a total of 380 units near the gentrifying Columbia Pike area.
And, in another non-traditional partnership, AHC joined with Housing Partnership Equity Trust (HPET), a social purpose real estate investment trust (REIT), to acquire Woodleaf, a 228-unit apartment community in Silver Spring, MD — the first such partnership in the DC region. HPET is the first affordable housing REIT created and managed by nonprofits; AHC is one of 12 nonprofit housing developers in the collaborative.
AHC also made full use of existing affordable housing tools by pulling together funding from a variety of sources. For instance, AHC combined Low Income Tax Credits, tax-exempt bonds and Historic Tax Credits to finance the $110 million renovation of Woodbury Park, a 1940s historic garden-style community with 364 mixed-income apartments in Arlington, VA. The extensive financing package did not require local housing funds from Arlington County’s Affordable Housing Investment Fund (AHIF).
Photo: Woodleaf in Silver Spring was the first acquisition by a social purpose real estate trust in the DC region.