MF vs HTC

Conventional requirements are based on your owner, county, city and state Landlord Tenant Laws.
Very easy, quick leasing and sales and if your market will bear the rents..... credit/criminal/rental history checks are done and you verify they can afford the 3x's the rent. Boom sign lease move in. renewals are done on your timeline.


HTC requirements are based on your State Application for credits and your development types of funding. If you are using multiple financing then your Cost Certification and 8609 filings are the defining moment for HTC projects. Your applicable fraction on your project determines your income limits and your rent limits for your MSP. Marketing begins before you even have a single COC or unit to show. Fair housing laws and HUD rules apply to all prospects, vendors, maintenance and owners.....this is where the fun begins.
determine which unit has what rent and income limits, find an income qualified prospect that can afford the rents, begin the leasing paperwork , prove ALL forms of Income (HUD 4350 chapters 3 and 5, appendix A-z rules apply to paperwork requirements), 23 to 50 documents that prove income and eligibility, then you can perform the checks for credit/criminal/rental history. calculations are done, document ordering and processing are done and sent to manager, manager reviews and sends to Compliance for approval. This is the 3 days of waiting for onsite staff for the approval for move in. Sometimes this is a 2 to 3 day back and forth process. Approval received for move in. Then you get to sign the lease for the specific income eligible apartment that Household was approved for. Sign the lease 8 pages plus 5 or 6 addenda for the parking,laundry,pool and community rules, pet addendums and then the certification of income eligibility. NOW you can move the person in.

Affordable housing will either make you a professional housing associate, or it will sending you packing, running for wine and a different job.... OH and your budgets are non existent.

This from a 25 year multifamily and Affordable Housing credentialed professional.

The difference between an Tax Credit property and Conventional Property is the intake process during application, based on my experience. Tax Credit property clientele does go through a very lengthy process before getting approval; let alone the waiting period is longer. I would like to know what are other's experience are like as well.

LIHTC properties have a smaller margin for those that meet the specific guidelines of the program. The challenge, as rental rates get closer to the MAX RENTS, is to get candidates that meet the criteria.

LOL...oh so true. I actually manage Section 8, which has a ton more paperwork than Tax Credit. I Liked Tax Credit better. But it is not even the paperwork so much. I hate the
#1) tiny budget we have to work with
#2) mediocre salaries
#3) constant inspections (we have a min of 4 per year and as many as 7 a year if the state/feds come in)
#4)difficulty in finding anyone who can pass the credit and criminal background checks.
I am lucky in that I am very hands on with my residents so I do not have many issues with them (rarely do we have the police here and rarely do we have any drugs issues or crime). But we also do not get very many applications because we are so "out there" in the boonies. When we do have openings it is very difficult to fill then sometimes.

The People who Manage the Communities is the difference, knowing your clientele and their needs is the only real difference. And not to be rude its referred as Market Rent or Conventional

More Rewarding helping someone have a home that otherwise they could not afford and like everyone says paperwork -