In the Media, Thought Leadership
Why Preservation Is No Longer a Niche Investment Strategy
Patrick Duggan
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When Newton Gardens, a 112-unit apartment property in affluent Newton, Mass., went up for sale, its affordable rents were vulnerable to a familiar market-rate play: raise rents and price out existing residents. But thanks to a local sponsor’s work, the property will remain affordable.
The deal represents a significant preservation win. Affordable housing investment has long relied heavily on the Low-Income Housing Tax Credit (LIHTC), often for new construction. But as a wave of existing LIHTC units begins to reach the end of their mandated federal affordability requirements, preservation is emerging as a more visible investment strategy.
Check out our latest article in Affordable Housing Finance to learn how preservation offers investors the opportunity to invest in a stabilized, cash-flowing property while keeping existing affordable units in service.
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