AFFORDABLE HOUSING – DEFINED

INTRODUCTION

The United States is facing an affordable and attainable housing crisis. Rising rents and stagnant wages have made most rental housing unaffordable to low-moderate income households. More than 11 million renter households – roughly one in four renters – spend over half their income on rent, leaving too little for other necessary expenses like transportation, education, healthy food and medical bills.
Affordable housing is no longer an issue pervading low income households as it now touches middle and upper income households in some capacity, either directly or indirectly. The issue is urban, suburban, and rural. It touches millennials, families, veterans, seniors, and the workforce. It impacts economic development and the potential redevelopment of communities. Prairie Fire’s mission is to develop projects that address this issue while improving conditions in communities, leading to economic growth and development.

A PROVEN SOLUTION

The Housing Credit is our nation’s most successful tool for encouraging private investment in the production and preservation of affordable rental housing. For 30 years, it has been a model public-private partnership program, bringing to bear private sector resources, market forces, and state-level administration. It has financed nearly three million apartments since 1986, providing roughly 6.5 million low-moderate income families, seniors, veterans, and people with disabilities, homes they can afford. Unlike many other tax expenditures, which subsidize activity that would occur at some level without a tax benefit, virtually no affordable rental housing development would occur without the Housing Credit. Other important facts of the program include:

  • The tax credit is provided through the IRS, not HUD.
  • Tax credit housing is NOT public housing.
  • Residents must show proof of income and pass criminal and credit background checks.
  • Tax credit housing is held in compliance by the owner for at least 15 years, if not 30. We make a long term investment in a community and are here to stay!
  • Tax credit housing is capitalized with significant operating and replacement reserves to ensure the asset is properly cared for over time.
  • The property has annual physical and tenant file inspections by state housing finance agencies, investment partners, and lenders.

STATISTICS

At Prairie Fire we have a saying “the math shall set you free!” We are research analysts that happen to be real estate developers. Our team is constantly reviewing and analyzing data that impacts our industry – economic, financial and demographic. Some of the more telling statistics are outlined below, demonstrating the demand curve and incredible need for more affordable housing in this nation:

  • Since 1960, rents charged to tenants have increased 64% while renter incomes have increased only 18%, creating a severe cost burden on renters.
  • One out of two renters earns less than $35,000.
  • Nearly half of all renters in the nation are cost burdened – they spend more than 30% of income toward rent. Meaning they have less funds available to spend in the local economy. This issue is more prevalent in rural and urban areas.
  • For every unit of affordable housing developed, there is a need for 66 more! The demand vastly exceeds supply.
  • Since its inception, the affordable housing tax credit program has generated over $310 billion of revenue and over $122 billion in tax revenue to local economies.
  • Employers consistently rank the need for housing as a top issue facing their growth and expansion.
  • Concern is apparent within the business community particularly among larger employers – about the lack of affordable housing for employees, with companies reporting the shortage as being problematic in hiring and retaining entry-and mid-level workers, according to a new survey released by the Urban Land Institute (ULI).
  • The vast majority of studies looking at the impact of affordable housing on neighboring property values have found that affordable housing does not depress neighboring property values, and may even raise them in some cases.

RESOURCES

PERFORMANCE AND SUCCESS:

NEED FOR AFFORDABLE HOUSING:

COMMUNITY IMPACT:

ECONOMIC IMPACT

Affordable housing development is a powerful economic development tool. Whether it is redeveloping an urban neighborhood like CP Lofts in Kansas City, Missouri, or the expansion of workforce housing in McPherson, Kansas or Moundridge, Kansas, it has a significant short, mid and long term impact on local communities. The primary goal of affordable housing is to lower the monthly housing costs for low and moderate income families. More housing choices improves worker and employer attraction and increasing the buying power of residents. Further research shows that affordable housing development also drives local economic growth:

Economic Impact Fact Sheets, listed by state, that Prairie Fire is currently working on:

ANNOUNCEMENTS

Prairie Fire to develop mixed-income workforce housing in Ottawa, Kansas using Housing Tax Credits, Housing Trust Fund and Moderate Income Housing Funds!

Prairie Fire Residences in Newton, Kansas now leasing!  Contact prairiefireresidence@dalmark.com for more information!

CP Lofts in Kansas City now leasing! Contact cplofts@prairiefiredg.com for more information!

Meadowview in Moundridge, Kansas finishes ahead of schedule. Now leasing!  Contact meadowview@prairiefiredg.com for additional information!

 

CONTACT

770 East 5th Street

Kansas City, MO 64106

816.686.2416

info@prairiefiredg.com