The US Department of Housing and Urban Development has released the 2011 2nd Quarter Housing Market Conditions Report. Second quarter housing data indicates that the housing market recovery remains sluggish at best. The multifamily housing sector performance saw mixed results during the second quarter. For instance, 175,000 building permits were issued for new multifamily units, up 21 percent from the first quarter and 28 percent from a year earlier. However, only 141,000 new multifamily unit starts were issued, down 9 percent from first quarter but up 41 percent a year earlier.
The report also includes 15 year LIHTC property data. The data indicates that on average, more than 1,300 projects comprising over 103,000 units were placed into service during the 15 year period with more than 95 percent of those being qualifying units. The data also presents information about additional subsidies used in LIHTC projects. Overall, Rural Housing Service (RHS) Section 515 loans were used in 9.4 percent of projects places in service during the period and about 21.5 percent of projects received bond-financed mortgages. In addition, the percentage of LIHTC projects located in Difficult to Develop Areas (DDAs) and Qualified Census Tracts (QCTs) are 22.5 percent and 30.4 percent, respectively. This means that 44.4 percent of total LIHTC projects placed into service during the time period are located in designated areas. Finally the new HUD data also indicates that LIHTC projects are disproportionately located in favorable development cost areas or areas where development costs are low relative to incomes.
To read the full report, click here.
