Affordable housing presses on despite plunging property values

January 29th, 2010

When the market is pushing prices down to decade-long lows, does South Florida need to create explicitly affordable housing?

A recent industry conference for tax credit developers brought the issue front and center as some market participants questioned the need for additional low-income housing in the region, where property values have dropped more than 40 percent in two years, based on the benchmark S&P/Case-Shiller Home Price Indices.

Organized by San Francisco-based certified public accounting firm Novogradac & Company, this year’s conference addressed issues affecting low-income housing tax credit developers, such as identifying ways to handle economic challenges, resurrecting stalled projects, and financing structures.

But many South Florida industry watchers aren’t convinced that the local market needs more affordable housing projects. In fact, with a housing glut and devalued properties, experts said more affordable housing could prolong the recovery.

Read the rest of my story at The Real Deal.

Entry Filed under: Hot off the Press