Blend Network’s Post

🚨 New Policy Alert: Residential Development Underwrite (RDU) The coalition Government's new Residential Development Underwrite policy could be a game changer for the housing market—guaranteeing unit sales in qualifying projects to unlock new housing supply. But with eligibility focused on shovel-ready projects of at least 30 units, many smaller developments may not qualify. That said, this policy could still offer opportunities for larger developments, while most smaller projects can still thrive with the right financial backing. At ASAP Finance, we specialise in funding small to mid-scale developments—where most of the market sits. Let’s chat about how we can tailor our solutions to fit your project. 📞 0800 272 756 https://asapfinance.co.nz/

Why the Canadian Housing Crisis Needs Mini Developers Today To tackle the ambitious target of building millions of homes by 2030, the Canadian government is empowering homeowners to become mini developers. We analyze how this new financing aims to bridge the housing gap and meet public promises. #CanadianHousingCrisis #HomeDevelopment #HousingMarket #GovernmentInitiatives #MiniDevelopers #RealEstate #AffordableHousing #Canada2023 #FutureOfHousing #UrbanDevelopment

What are your feelings toward government subsidies and multifamily housing? The only newly constructed MFH in our town for the past 20 years have been subsidized housing. Numbers don’t work for a developer doing traditional financing. Works great if you earn less than 60% of the median area income. These projects have amenities that people who make median income won’t find in the apartments they can afford. There are pros and cons here. What are your thoughts? #realestate #investing

Shelton Development Services looks at the often-overlooked landscape of government grants for property developers, delving into various funding opportunities and shedding light on their pivotal role in navigating challenges. #ukhousing #socialhousing #propertydevelopment #propertydeveloper

Private sector capital in the affordable housing space is a trend I’m increasingly seeing amongst my impact investor and workforce multifamily clients at JJA Real Estate Consulting. While we can bemoan the fact that state and federal funding sources remain uncompetitive and overly bureaucratic in a nation facing an acute shortage of accessible housing options, I think we have to find some encouragement in the fact that communities and developers are still finding ways to get deals done at a time when they are critically needed.

We analyzed data from over 300 affordable rental projects to understand how developers are adapting to today's challenging environment. Since 2020, the median cost of building new low-income rental units in North Carolina has increased from $160,000 to $250,000 per unit. We found that developers are increasingly seeking support from local governments to cover the financial gap left by elevated construction costs and interest rates. Last year, North Carolina local governments committed more than $30 million in gap funding to projects financed with 9% LIHTC, a program that historically has required minimal gap funding. More here: https://lnkd.in/ePhrSbpU

As of 1 January 2024, the demolition-reconstruction scheme in the 32 cities (so-called urban cancers) was abolished. This scheme allowed developers to build private homes (e.g. single-family homes, apartments, student housing, etc.) with the application of the reduced VAT rate of 6% for their own use or for rental. This provision did not contain any restriction on the maximum habitable area of the dwelling and applied both to private builders and to developers/institutional investors. #Demolition #RealEstate #Reconstruction #VATAlert

We analyzed data from over 300 affordable rental projects to understand how developers are adapting to today's challenging environment. Since 2020, the median cost of building new low-income rental units in North Carolina has increased from $160,000 to $250,000 per unit. We found that developers are increasingly seeking support from local governments to cover the financial gap left by elevated construction costs and interest rates. Last year, North Carolina local governments committed more than $30 million in gap funding to projects financed with 9% LIHTC, a program that historically has required minimal gap funding. More here:

I posted essentially the same reply to another Financial Times article but I think it applies here just as well. The Financial Times article and the recent Competition and Markets Authority report do not blame housebuilders... the latter effectively exonerates them and focuses on planning. What should be a surprise is that for 40 years government policies have, at best, failed to address the annual shortfall in supply and in all too many case actively made the problem worse through attitudes to planning, infrastructure and local government finance. The consequence has been entirely predictable. Rapidly rising house prices and reduced GDP growth - beyond the contribution from a higher level of house building, housing costs accounting for an ever rising proportion of incomes squeezing out spending on both consumption and saving... both having a considerably higher economic multiplier effect than spending on securing access to an essential commodity. The recent Competition and Markets Authority report blamed our planning system AND the reliance on "speculative" supply. The former is fair, the latter describes a market economy. For the 30+ years before the withdrawal of local authorities from actively commissioning housing in the 1980s they had accounted for roughly half of all housing starts. It cannot be a surprise that developers/house builders faced with the pretty sudden halving of their buyer universe cut supply... who were they going to sell to? This has persisted ever since. Institutional capital can replace local authorities as the provider of rental property... but this needs policy support... planning, infrastructure, access to land - maybe even compulsory purchase. The market... not actually a "free" market given planning and the reliance on heavily regulated supply of power/water etc... is not working. this requires a concerted long term multi faceted policy driven approach. I suspect we will still be waiting on this for a long time as conditions continue to get worse.  #buildtorent #housing #realestate

My friend Bill Knowlton asks the question: Is it possible to build and operate affordable housing without government financing? Short answer, yes - but only with a financial partner who measures “profit” in non-economic metrics. The goal of the private sector is to generate economic returns in excess of inflation. The only way to do this while keeping income (rents) at or below inflation is to have a financial partner who is motivated by something other than money. Normally this is the role of government, and is accomplished through direct payments, tax credits, density bonuses, and other incentives. In more recent years, the not-for-profit sector has become a more visible and active housing partner. While NFP’s have their own requirements and limitiations, they are a very attractive alternative to government financing. https://lnkd.in/eHE5FXCF