REAL 701: Affordable Housing Finance Master Syllabus
Course Instructor:
Office Number:
Office Hours:
Email:
Course Meeting Times:
Course Website: Canvas
University Catalog Description
This course offers a comprehensive examination of the financial techniques and tools used to develop and sustain affordable housing. Students will explore the unique challenges of financing affordable housing projects and gain an in-depth understanding of the Federal Low-Income Housing Tax Credit (LIHTC) Program, the primary mechanism for funding affordable housing in the U.S.
Syllabus Course Description
This course offers a comprehensive examination of the financial techniques and tools used to develop and sustain affordable housing. Students will explore the unique challenges of financing affordable housing projects and gain an in-depth understanding of the Federal Low-Income Housing Tax Credit (LIHTC) Program, the primary mechanism for funding affordable housing in the U.S.
The course covers the complexities of financing multifamily rental housing, with a focus on how these challenges intersect with institutional investment and capital markets. Topics include the use of incentives, public-private partnerships, tax-exempt bonds, alternative financing, grants and other subsidies, and debt securitization, all of which have been crucial in the evolution of residential and affordable housing finance.
Students will engage with practical financial models, including income, market, and cost approaches, as well as applications of discounted cash flow, income capitalization, and residual techniques. The course emphasizes the importance of investment, risk assessment, and valuation in making sound financial decisions in affordable housing development.
By the end of the course, students will be equipped with the knowledge and skills necessary to finance affordable housing projects, interact effectively with governmental agencies, and navigate state and federal subsidy programs. The course also delves into the political and policy landscape of affordable housing finance, both nationally and locally, and explores how these factors impact the availability and allocation of funding. Students will gain practical experience in drafting affordable housing budgets and conducting cash flow analyses using various funding sources.
Learning Objectives
- Understand Financing Techniques: Master the various techniques and tools used in affordable housing finance, including LIHTC, tax-exempt bonds, and public-private partnerships.
- Analyze Financial Models: Apply income, market, and cost approaches in financial modeling, with an emphasis on discounted cash flow, income capitalization, and residual techniques.
- Navigate Regulatory Frameworks: Gain familiarity with federal and state-level subsidy programs, and learn to interact with governmental agencies involved in affordable housing finance.
- Assess Investment and Risk: Evaluate the role of investment and risk in affordable housing finance, and understand lease valuation's impact on cash flow and financial decision-making.
- Explore Political and Policy Context: Investigate the political and policy dynamics that influence affordable housing finance at the national and local levels.
- Develop Practical Skills: Build proficiency in drafting budgets, performing cash flow analyses, and conducting feasibility studies grounded in market analysis.
Approach to Learning
No additional information at this time.
Core Course Topics:
- Introduction to Affordable Housing Finance: Overview of the financial challenges unique to affordable housing development.
- Market failures, funding gaps, barriers to entry for affordable housing developers.
- Federal Low-Income Housing Tax Credit (LIHTC) Program: Detailed exploration of LIHTC as a funding mechanism.
- LIHTC allocation process, financial structuring, compliance, and future prospects.
- Tax-Exempt Bonds and Securitization: Examination of tax-exempt bonds and securitization as tools in affordable housing finance.
- Bond issuance process, debt securitization models, and their impact on capital markets.
- Public-Private Partnerships: The role of public-private partnerships (PPPs) in financing affordable housing projects.
- Structuring PPPs, risk-sharing mechanisms, and case studies of successful partnerships.
- Institutional Investment in Affordable Housing: The intersection of affordable housing finance with institutional capital markets.
- Role of REITs, pension funds, and other institutional investors in affordable housing.
- Financial Modeling Techniques: Application of income, market, and cost approaches in financial analysis.
- Discounted cash flow analysis, income capitalization, residual value calculations.
- Risk Assessment and Lease Valuation: Understanding investment risk and lease valuation in the context of affordable housing.
- Risk-adjusted returns, lease structuring, impact on cash flow.
- State and Federal Subsidy Programs: Overview of subsidy programs and their role in affordable housing finance.
- HUD programs, state tax credits, gap financing, and navigating regulatory requirements.
- Politics and Policy in Affordable Housing Finance: Exploration of the political and policy environment surrounding affordable housing finance.
- Policy impacts on funding allocation, lobbying, and advocacy strategies.
- Practical Skills Workshop: Hands-on experience in drafting budgets, performing cash flow analyses, and conducting feasibility studies.
- Budget creation, funding source integration, feasibility analysis grounded in market realities.
- Case Studies and Real-World Applications: Examination of real-world affordable housing projects, focusing on financial strategies and outcomes.
- Case studies of successful and unsuccessful projects, lessons learned, and best practices.
Representative Text and Learning Materials
No additional information at this time.
Methods of Student Evaluation
No additional information at this time.
To print: Right-click and choose “Print,” then follow your browser’s print settings.
To download: Right-click and choose “Print,” then select “Save as PDF.”