Category: Soft equity

Hedging the unhedgeable?

13 May, 2011 (10:26) | Capital, Hard debt, Innovations, LIHTC, MacArthur Foundation, Rental, Soft equity, Theory |

Doing business with the government comes with the territory in affordable housing – because it always costs money to fill the cost-value gap, and government is the ultimate source of evergreen, scalable subsidy resources – which raises an eternal question: how do you hedge government-performance risk?      Theoretically, one can sue the government, and […]

Great laws from little blog posts grow

14 January, 2010 (11:43) | Homeownership, Regulation, Soft equity, Tax credits, US News |

By: David A. Smith   If virtue is its own reward, can an AHI post change a law?    One blog post = one wing flap?   Though I would never claim such a thing, Dr. Zhong Yi Tong, principal analyst of the Washington DC homeownership tax credit, traces a direct link between a July, […]

Risks of soft equity when markets seize up: Part 2, the messiness of market crunches

9 June, 2009 (09:59) | Capital markets, Finance, Inclusionary zoning, Local issues, New York City, Real estate taxes, Section 421-a, Soft equity, Tax abatement, Theory, US News |

[Continued from yesterday's Part 1.]   In yesterday’s post, we got an education into New York City’s clever Section 421-a program, which combines inclusionary zoning with linkage (or did, until the 2007 reforms), creating a transferable certificate that could be sold, and was sold, as illustrated by an intra-developer litigation highlighted in The New York […]

Risks of soft equity when markets seize up: Part 1, the neatness of Section 421-a

8 June, 2009 (09:16) | Capital markets, Finance, Inclusionary zoning, Local issues, New York City, Real estate taxes, Section 421-a, Soft equity, Tax abatement, Theory, US News |

You wouldn’t think that delays in financing a downtown luxury tower would stop in its tracks an affordable property in the Bronx, but such is the nature of sophisticated financial ecosystems that everything can influence everything else.  [As my friend Shekar Narasimhan has pointed out, when Lehman went under, it filed bankruptcy in 56 countries, […]