Tag: development finance
Student Corner: On Borrowed Ground: A Ground Lease Primer – Part 1
Imagine that you find the ideal land parcel to develop, but the owner does not want to sell – and desires to retain ownership in any future land appreciation. Or, you find the perfect development site that offers superior investment returns – but the land cost is prohibitively expensive, and makes y … Read more
Student Corner: Revolving Loan Funds for Affordable Housing
In previous CED posts, the definition and benefits and disadvantages of a revolving loan fund structure have been described. For review purposes, a revolving loan fund is often defined as a replenishing source of capital or funding from which loans are made. Some of these same posts describe this fi … Read more
Student Corner: Equity with a Twist: The Low Income Investment Fund’s Social Capital Tool
The Low Income Investment Fund (LIIF) is a community development financial institution (CDFI) dedicated to providing innovative capital solutions that create a bridge between private capital markets and low income neighborhoods. The organization strives to create pathways for investors in projects t … Read more
Student Corner: Federal Housing Finance Options for Mixed-Use Development
Federal housing finance policies and programs exist to provide financing for the acquisition and construction of homes and boost investment in the housing industry. While a variety of housing loan products exist, a report released by the Regional Plan Association (RPA) in February 2016 highlighted t … Read more
Student Corner: Boosting LIHTC: Difficult Development Areas & Qualified Census Tracts
The Low-Income Housing Tax Credit (LIHTC) program was designed to encourage the private development of affordable rental housing in the United States. (If you are new to LIHTC, check out the CED blog’s primer on low-income housing tax credits before proceeding.) But even with the dollar-for-dollar … Read more
Student Corner: How a Mezzanine Loan Can Reduce Equity Requirements, Boost Returns, and Attract Investment to a Redevelopment Project
The Parker Building is a two-story, 8,000-SF brick building in downtown Milliganton, NC. The building is subdivided into two small retail tenant spaces, but for the most part it is an empty shell. Despite having been mostly vacant for the last several decades, the building is in good shape. A recen … Read more
Student Corner: A Little Slice of Heaven: A Primer on Air Rights in Development
Common law holds that once person owns a piece of land “it is theirs all the way to Heaven.” In a modern development environment, however, the transfer of air rights—fee simple title to a three dimensional space located at a precisely defined location—between owners is becoming increasingly common. … Read more
Student Corner: Renewed Funding Extends New Market Tax Credit Program Through 2019
The CED blog has previously written about the importance of New Market Tax Credits, and their place in the process for developing real estate transactions (a primer can be found here, and a discussion of the process for investment can be found here). Briefly, these credits are designed to drive cap … Read more
Student Corner: Report: The Unintended Consequences of Housing Finance
The Unintended Consequences of Housing Finance is a recent report by the Regional Plan Association that addresses the negative externalities of certain federal housing finance rules, and myriad methods to address these externalities through rule changes and amendments. Perhaps it is not immediately … Read more
Student Corner: Tools for financing development in revitalization areas: HUD Multifamily Loan Products
Many people are familiar with HUD FHA mortgage insurance programs for single-family housing. These programs insure mortgages for lenders providing loans to single-family home borrowers and have been a significant driver in shaping the housing and mortgage markets in the United States over the last 8 … Read more