Creating a secondary market for community development loans

Article Abstract:

The Local Initiatives Managed Assets Corp. created the secondary market for community development loans to provide financing for low-income housing programs and community development projects. The secondary market's primary aim is to strengthen the capital base of local lenders by facilitating the transfer of loans from the lenders to the investors, which will provide the capital needed. In real estate, a third-party is needed to package the loans for resale and thereby enhance the flow of capital. Groups which play this role include the Federal National Mortgage Assn. and the Federal Home Loan Mortgage Assn.

Housing & Community Development, Analysis, Community development corporations, Home equity loans

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The low income housing tax credit: its ten-year anniversary

Article Abstract:

The Low Income Housing Tax Credit was established under the Reagan Administration Tax Reform Act to aid in the development of affordable rental apartments. It has successfully helped subsidize over 900,000 rental apartments, stimulated more than $12 billion in private capital investment, and created over 90,000 jobs in its ten years of existence. Although socioeconomic trends show a growing need for more affordable housing projects, the program is facing opposition in the form of reduced assistance levels from Congress which should be cause for alarm in the housing industry.

Tax Law, Public Finance Activities, Planning, Laws, regulations and rules, Supply and demand, Rental housing, Land use, Low income housing tax credit, Portland, Oregon

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Pooling risk and resources for affordable housing

Article Abstract:

Pooling of funds is one financing approach that enables housing developers to provide affordable housing, despite shortage in government subsidies. Pooling involves lenders and investors which provide the financing, construction companies and developers. The government also participates in pooling by providing soft financing in the form of housing mortgages. Companies are paid back through rents, which they could pay through arrangements with the local community bank.

Housing & Development NEC

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