affordable housing

Financial Analysis

DRA maintains comprehensive and authoritative expertise in all forms of affordable housing finance. These include Low Income Housing Tax Credits, tax-exempt and taxable bonds), Investment Tax Credits, New Markets Tax Credits, Historic Rehabilitation Tax Credits, housing trust funds, tax increment financing, inclusionary zoning and land value capture policy in support of affordable housing, Project-based Vouchers, energy efficiency and renewable energy financing, private sector debt (construction, bridge, mezzanine, permanent) and equity. DRA is deeply experienced in affordable housing lending, credit enhancement and subsidy programs of FHA, Ginnie Mae, Fannie Mae, Freddie Mac, the Federal Home Loan Bank system, USDA Rural Development and HUD.

DRA Principals have advised on more than $10 billion in affordable housing development projects for a total of more than 100,000 units and portfolio finance.

DRA maintains a proprietary financial model that analyzes affordable housing projects to prepare projections, evaluate fundamentals, and perform financial sensitivity analyses for debt, equity, public sector financing, bond transactions, credit enhancement, pricing, and underwriting for those projects.

This model is capable of sensitivity analyses and quantification of the financial gaps in a wide range of affordable multifamily, single-family, and mixed-use financial structures. The model quantifies the economic value of alternative rent subsidy, capitalized subsidy, credit enhancement and other financial structures. This analysis incorporates nine percent and four percent Low Income Housing Tax Credits, tax-exempt bonds, energy efficiency and renewable energy finance, HOME, AHP and CDBG grants and loans, tenant-based and project-based vouchers, as well as rent and operating subsidies. DRA structures financially advantageous ground leases and residual receipts notes for lenders, lessors and developers. The model calculates Project-Based Voucher “overhang rent” for housing authorities and their development partners.

DRA is expert in the rules governing housing authorities. This expertise covers tax credits, bonds, tax increment financing, debt and equity, RAD, Section 18 dispositions, HOPE VI, mixed finance, Project-Based Vouchers, Moving To Work (MTW) authorities, bond issuance, Replacement Housing Factor and Capital Funds, ACC contracts, PFS contracts, reserves and ground lease/land trust models for joint development.