Multi-Housing News - April 2009 - (Page 18)

resources to the table. Cash is always king, but many times it’s not cash; it’s real estate tax abatements, free land and impact fee deferrals.” Greer feels many communities are missing out by not funding affordable housing now, at a time of low construction and land costs. They could put some of their unemployed workforce back to work, fund affordable housing at a more attractive price than they could earlier, and see that housing pay dividends for years to come. Enterprise Homes Columbia, Md. Number of units developed: More than 4,300 Regions: Mid-Atlantic Dollars in development: Approximately $480 million Chickie Grayson, president Founded in 1985, Enterprise Homes creates opportunities for affordable housing in home ownership and rental housing. Enterprise Homes develops models for financing affordable housing, Grayson says. “That’s important, because it’s financing that can make it affordable for residents.” Emblematic of its work is Heritage Crossing in Baltimore, a townhouse and two-story apartment community boasting traditional neighborhood design. Heritage Crossing was designed to push the envelope in creating significant for-sale and rental housing for people from all walks of life. She calls the current main challenge to affordable housing “financing, financing, financing” and recommends accessing financing as much as possible through the American Recovery and Reinvestment Act. “Land is very reasonable right now,” she says. “I’m actually very optimistic. I think pricing is coming down, and opportunities are much more available to us than they were three years ago.” In the current abysmal economic environment, relationships with banks and other institutions are among the most important attributes for anyone attempting to finance affordable housing development, she adds. That’s because many banks and other lenders are only lending to those with whom they have current or prior relationships. “You can partner with somebody who has those relationships,” Grayson says. “It’s important to be strategic about how you try to gain your financing.” MacFarlane Costa Housing Partners, Gardena, Calif. Number of units developed: More than 14,000 as primary developer over 15 years, with another 14,000 developed working with thirdparty developers Regions: 33 states and Puerto Rico Dollars in development: $40 to $50 million currently under construction Michael A. Costa, president MacFarlane Costa Housing Partners is a developer, builder, financier, owner and operator of affordable housing. Asked to identify his favorite among his company’s affordable housing ventures, Costa replies that he’d be hard pressed to name just one. “Our philosophy as an affordable housing developer is to develop housing that doesn’t look like affordable housing. If you drive by, you would never be able to tag that as affordable housing. We enter contests like the National Association of Home Builders’ Pillars of the Industry Awards, and have been fortunate to have been named a finalist six or seven times—and to have won three times.” He adds, “And we were the first affordable housing developer to win NAHB’s Pillars of the Industry’s Builder of the Year Award.” Obtaining financing is “without question” the top challenge to affordable housing development in today’s economic environment, Costa says. And that challenge is not simply seen within the traditional context of obtaining financing from a bank, but also in landing all the funding sources that are needed to cover the costs of a project. “Often, we will have as many as four or five layers of financing,” he says. But Costa believes that during any downturn there are opportunities for those who are good at what they do. One of the things Housing Partners is particularly adept at is maintaining very close relationships with state and local municipalities. It does so because those governmental entities often have the financing sources needed. “Cities have funds, states have funds, counties have funds,” Costa says, adding that a company like his must work closely with all of the localities to stay up-to-date on changing programs that assist in development of affordable housing. He adds, “We are meeting with several cities and the state of California to help design the most efficient use of those funds.” MHN To share your company’s strategies, e-mail diana.mosher@nielsen.com. MHN ONLINE Apartment owners share strategies for a tough economy at www.multi-housingnews.com/ profile_storm 18 April 2009 | Multi-Housing News | Official Publication of Multi-Housing World http://www.multi-housingnews.com/profile_storm http://www.multi-housingnews.com/profile_storm

Table of Contents for the Digital Edition of Multi-Housing News - April 2009

Multi-Housing News - April 2009
Contents
From the Editor
Executive Insight: Sue Ansel
Finance: Fannie Mae & Freddie Mac
Quote of the Month
Market Forecast: Texas
Profile: Affordable Developers
Operations: Green Laundry Rooms
Technology: BIM
Kitchen & Bath: Tile Installation
Perspective: Doug Bibby, NMHC

Multi-Housing News - April 2009