MIAMI—Miami still has a dearth of affordable housing, so what does that mean for developers and investors in 2015? GlobeSt.com caught up with Matthew Rieger, CEO of statewide developer Housing Trust Group (HTG), to get his predictions about theaffordable housing industry in the months ahead.
For starters, Rieger tells GlobeSt.com he sees high demand for affordable housing development in all regions of Florida. There is some funding available. The Florida Housing Finance Corporation allocate tax credits to different counties but he says more resources are needed to supplement the tax credits with gap financing.
“Demand for this housing far outweighs the supply,” Rieger says. “Tax credit allocations are based on population size so Florida will continue to get its fair share after the governor approves the individual allocations by county.”
Rieger also predicts banks will continue to compete heavily to purchase tax credits for more than 100 cents on the dollar because the economy has improved and to meet their Community Reinvestment Act requirements. In 2015, he expects to see more affordable housing developments targeted to seniors and to the homeless or formerly homeless.
Since launching in 1998, HTG's has inked over $1 billion in commercial, land and residential developments. All told, HTG has developed about 4 million square feet of properties.
The firm is expected to be one of the largest affordable housing developers in Florida in 2015. The stage appears to be set.
In December of 2014, the firm closed on the financing of Whispering Palms, a new $12.4 million affordable housing development in Largo, FL. Whispering Palms is a 63-unit development that targets families.
The affordable housing development will create about 95 jobs during the 12-month construction phase and another 24 permanent jobs when it opens. This is HTG's second affordable housing project announced within a year in the region. The other is 540 Town Center in Saint Petersburg, FL. 540 Town Center is a 145-unit community targeting senior residents.
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