Affordable Housing Developers Face New Challenges.
Affordable housing developers are facing more obstacles to building new projects, even though the need for affordable housing grows stronger every year.
In the US the Federal LIHTC Program is providing less funding than it did in prior years.
The cost of construction is getting more expensive,
Land, labor and material costs continue to rise.
Finding individual development deals that make financial sense are harder to get.
The U.S. Market.
Poor families in the United States are having an increasingly difficult time finding an affordable place to live, due to high rents, static incomes and a shortage of housing aid. Tenant advocates worry that the new tax bill, as well as potential cuts in housing aid, will make the problem worse.
An estimated 11 million families in the U.S. now pay more than half their income on rent, a number that has grown steadily as the supply of affordable housing shrinks. The result, say tenant advocates, is that some people are forced to choose between paying for rent or other necessities, such as food and medicine.
U.S. Housing and Urban Development Secretary Ben Carson has said that more affordable housing might be funded in a new infrastructure bill, but with the present gridlocks in congress it does not look optimistic.
The U.S. Lacks Housing for 7.2 Million Lowest Income Renters.
If you are among the 11-plus million American households classified as extremely low income, finding a place to live is a tall order, anywhere in the country. No state or large metro has enough units available. But the odds of landing one vary drastically—it’s much higher in Boston, for example, than in Las Vegas.
Overall, only 35 affordable units were available per 100 extremely poor households. That’s a shortfall of 3.9 million units nationwide.
Property unaffordable for 100,000 households a year in England.
Almost 100,000 households in England are being priced out of the property market each year because of a shortage of affordable homes to rent or buy, according to a report.
Research by estate agents found the number of priced-out households had risen from its previous projection in 2015 of 70,000 a year. This was in part because of a change in how housing need is assessed, but also due to rising prices and stagnant wage growth.
Chancellor, Philip Hammond, reiterated a pledge to build 300,000 homes a year by the mid-2020s and unveiled a package of measures to support housebuilding. One-third of those would need to be offered at below market prices to meet the growing need for affordable homes.
2 Billion Euro for the construction of affordable homes in Germany.
The Federal Minister for housing (SPD) Barbara Hendricks would like to boost construction of affordable houses – not only for the refugees. The financial support should be doubled and increased to 2 billion Euro. She wants to double public financial support. Together with the Federal Minister of Finance Wolfgang Schäuble, she also wants to create tax incentives in the form of special depreciation limited to the neighborhoods where there is no affordable housing. This could be decided by the government already at the beginning of 2018.
The pressure to act is big and not only because of the refugee crisis. The government estimates that there is a need for 350,000 new dwellings per year.
This were examples of just 3 countries. Many more worldwide face the same shortage of low income housing. MMC-3 offers a solution for less than half the cost. Additional labor cost savings are provided by the fact that its modular units can be erected in a very short amount of time.