Enterprise Publishes Paper on Housing Credit Properties in their Extended Use Periods
Enterprise Community Partners, Inc. recently published a paper, Preserving Housing Credit Investment: The State of Housing Credit Properties and Lessons Learned for the Extended Use Period, to address questions about the performance, capital improvement needs, and disposition of Housing Credit properties after the end of their initial 15-year compliance period. The report presents recent data that responds to these questions and shares how some state and local housing agencies around the country are addressing post-Year 15 Housing Credit properties.
According to the report, while the overall condition of the Housing Credit portfolio at Year 15 is strong, as properties age into a second 15-year period of rent restrictions and beyond, the ability of some of those properties to afford needed improvements while maintaining affordability is clearly a challenge. The report also finds that most properties continue to generate positive cash flow or break even but are increasingly unable to contribute to reserves or significant rehabilitation. The report says that limited financing choices exist throughout the extended us period for properties with modest recapitalization or capital improvement needs.
The report states that some best practices suggest the need for programmatic and regulatory flexibility, new resources, and resyndication, where appropriate.