PRESERVING AFFORDABLE RENTAL HOUSING -- part 3

PRESERVING AFFORDABLE RENTAL HOUSING
Schwartz, sharing observations she and MacArthur colleague Erika Poethig delivered at a HUD symposium, identified three barriers to affordable housing preservation that must be overcome:

• Properties. Current resources, incentives and requirements tied to affordable rental properties do not adequately encourage or require owners to preserve long term affordability or to sell to other owners committed to that objective.
• Ownership. Current policies also limit the ability of owners to recapitalize, earn sufficient cash flow and build a sustainable capital base from which to successfully maintain, manage and operate properties that are affordable to low- and moderate-income renters.
• Transactions. Current housing programs and regulations are fragmented, cumbersome, often unpredictable and inconsistently applied. Transactions that would transfer properties to new owners committed to preserving affordability and providing good long-term stewardship are difficult, costly and slow.