Achievements

LISC staff in local offices around the country are actively involved in preserving the affordability of multifamily housing. Some are convening local public, private, and community interests in an effort to develop local strategies and partnerships to address this challenge. Some are participating in broad collaborative efforts to address the issue. Others are focusing on assisting CDCs and other nonprofits to take on individual transactions. Since 2001, LISC has provided technical assistance and over $56 million in financing committed to preservation projects with 15,000 units. This is a tremendous achievement in just four years, placing LISC at the forefront of nonprofit preservation of affordable rental homes.

LISC has provided critical technical assistance to CDCs in several states in support of specific preservation transactions or to help build capacity to respond to future preservation opportunities. These projects represent mark-to-market with mortgage restructuring, mark-up-to-market, Section 236 IRP de-coupling (including related complex LIHTC issues), nonprofit recapitalization, purchase of high-value mixed-income projects with partial Section 8, Enhanced Vouchers, and prevention of S.8 opt-outs and subsidized mortgage prepayments. In addition, these efforts provide a model for technical assistance to supportive municipalities. For examples of preservation projects receiving LISC assistance, see Preserving America's Affordable Housing.

Looking ahead, we see a growing segment of potential LISC projects that are either tax credit rentals emerging from their 15-year compliance period or that have expiring HUD-subsidized mortgages (Section 221(d)(3) or Section 236), jeopardizing their long-term affordability. There is also growing interest in refinancing of HUD 202 elderly properties by nonprofit owners. Increased foreclosures of distressed HUD-assisted housing present another need for additional LISC assistance.