I looking for someone who has had experience with the above mentioned programs. Here is my story...
I have a single family home in a big lot. I rent it under Section 8. I have already spoken with a friend who's an architect/engineer and the lot can accommodate 4 to 5 additional units. Since this will all be low income housing, I am looking for financing alternatives.
I have read about Low Income Housing Tax Credits (LIHTC) and what I am reading tells me (if I am reading it right) that for a project of this size (i.e., 6 units tops) the costs involved in getting and issuing the credits will not make the project cost-effective.
Therefore, I am currently pondering the option of developing using funds from the HOME Investment Program and then put permanent financing in place with a HUD's Multifamily Loan.
So, if you have had any experience with what I mention above, PLEASE share. I will buy you coffee (or preferably beer) whenever you are in my neck of the woods (sunny Puerto Rico).
You are correct, for a smaller project LIHTC is not the way to go, especially if you don't have a partner that has won them before.
Unfortunately, I don't have much experience with the HOME program, so can't be more helpful.
Hopefully some others here will chime in!
@Bradley Bogdan , thanks for confirming what I was already starting to suspect. It seems that anything below 50 units is not worth the LIHTC hassle cost-wise. In addition, neither my partner, nor myself have ever received or gone through the LIHTC process.
Hopefully, somebody will chime in about HOME. From what I have been reading, it's the way to go.
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