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Affordable Home Funding

Alderville gets funding for affordable housing from CMHC

A First Nations family now has an affordable, energy efficient home. Habitat for Humanity in Windsor-Essex partnered with Can-Am Urban Native ...

GOP House tax bill cuts funding for first-time homebuyers and affordable housing

"On average, people stay in their homes for six years, so in that case, you’re keeping most of it," said Michael Holliday, chief financial officer of the Nevada Housing Division.

In some cases, the mortgage credit is used to secure home loans with lenders that count the annual $2,000 tax return as income. Without that credit, some lenders won’t approve loans, stopping some people from buying houses.

Housing divisions are making exceptions for people who need the credit to qualify for those loans through Dec. 31. Anyone closing after Dec. 31 may be out of luck.

State housing divisions use the  tax-exempt private activity bonds  to fund the credit for people who qualify. If housing divisions promise money to people after Dec. 31 and the House bill passes into law without the bond, then the housing divisions will have promised people money that doesn't exist.

"It is temporarily suspended," Aichroth said. "If private activity bonds or any bonds that can be worked into this can be approved, depending when the tax bill settles, we will be absolutely up and running.

Maximizing affordable housing requires creativity

Front Street Apartments is home to almost 300 low-income tenants who could be priced out of their homes if no action is taken to keep the apartments affordable.

The apartment complex was completed in 2001, utilizing federal and state tax credits, and was to remain affordable until 2051. However, the Internal Revenue Service tax code allows for the owners to request to sell their interest, which requires approval from the state’s Hawaii Housing Finance and Development Corp.

After the owners’ request to sell is made, a qualified contract price is calculated in accordance with the Internal Revenue Code, which may exceed the fair market value of the project. For Front Street Apartments, the contract price was calculated at over $15.3 million, despite the appraised value of $8.7 million, both of which were for the buildings only.

As a result, no buyer was identified within the required one-year period and, therefore, the affordability requirement of the complex was terminated and is now operating under a three-year affordability commitment.

Which investment funds would invest in a profitable affordable home building company in an emerging market?


None; a publicly traded home builder in emerging markets in a beast virtually unheard of.