I’m not an expert on LIH, and would suggest you talk with someone in your city’s housing department about details of programs available to developers in your city and state. There could be programs at both levels that would be useful, such as urban opportunity zone tax abatement, redevelopment grants, low-interest government loans, equity participation by a bank (they need to do some of this to comply with the Community Reinvestment Act), subsidized rents, even city historic facade easements, etc. In most programs though, in order to reap the full benefits, it would be a long-term investment on your part. You could also check your state’s web pages for such programs. I know some are spelled out on my state’s web pages. Good luck.
Can anyone elaborate more on buildings that could be converted to low income housing? Whats entailed, and how do you make money on something like this? Would LIH be considered a long term investment or short term development to flip? How does one get finacining?
Im looking at a 3 level property w. about 9500 sq ft. and LIH may be a suitable option being in the inner city.
Nate has discussed other gov’t programs (in detail)in previous posts.
Why not give him a shout?
Take care,
Eric C
PS - Paul’s advice is sound. While I haven’t fooled with any of the LIH stuff in quite some time, the process was competitve and political (at least in Texas). All that may have changed (or perhaps not) so make sure you get the most current information.
You will want to contact your local HUD office for guidance on this issue. They will be a wealth of info on govt and private grant money avail to help. Also there are special financing programs.