Affordable Housing Finance Techniques

Real Estate Development

Fall 2012

Richard Froehlich + Chuck Brass, instructors

This course presented a detailed review of the techniques for financing affordable housing. In combination with the focus on financing techniques, the course looked at the development issues associated with this complex area and the policy focus of governmental programs. Incentives, public-private partnerships, the use of tax exempt bonds, the securitization of debt are all techniques initially developed for use in residential finance and in the financing of affordable housing. The crisis in credit and mortgage markets is impacting every segment of the real estate finance industry, including affordable housing. The residential finance system that has evolved in the US over the past 50 years is in the process of breaking down and being remade. Housing policy and the federal role in making residential mortgage markets function, as well as serving the affordable housing needs of the country, is in flux. Although the course was focused on finance and financing techniques, it considered the role of the public sector in regulating and creating incentives for the development and financing of housing in particular.