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, […]

The case book of Sherlock Holmes

23 November, 2006 (08:47) | Credit, Hard debt, Hard equity, Holmes on housing, Money, Soft equity, Subsidy |

    In the two years since Sherlock Holmes opened his pro bono cyber-consultancy on housing finance, he has commented prolifically on topics ranging from World Bank pipelines to the dangers inherent in excessive zoning.  So forthcoming has Holmes been, in fact, that Watson as his humble biographer has at times despaired of organizing the […]