By Andrea Rattray, Tapestry Development Group
The Atlanta region is currently seeing a rapid increase in the need for affordable housing as Atlanta continues to grow the focus has been on “luxury” multifamily rental developments, putting upward pressure on rents across the region. While the new construction of affordable multifamily rental housing continues through current programs, the demand for affordable rental housing far outweighs the supply. To mitigate this growing demand for safe stable affordable housing options, programs and capital should be made available for the preservation of existing affordable housing multifamily rental properties. While existing programs are available for the preservation of affordable housing through programs like the Low Income Housing Tax Credit Program, the high-barrier-to-entry nature of these programs make it difficult for property owners to access these capital sources. When existing property owners can access capital for the moderate rehabilitation of existing properties, the cost of rehabilitation can be too expensive due to the rising cost of labor, materials and the lack of efficiencies of scale for single property low-unit count renovations. The cost implications of renovation make it difficult for property owners to find rehabilitation financially feasible without large increases in rent to offset the cost of borrowing funds.
Tapestry Development Group’s Atlanta Affordable Housing Preservation Program is designed to offer low-cost capital to mid-size affordable housing multifamily property owners with properties serving residents at 80% AMI or below.