A new report from the National Council of State Housing Agencies examines the actions taken by housing finance agencies to ensure that affordable housing projects proceed. The NCSHA report, produced by Abt Associates, finds affordable developments have experienced unexpected cost increases averaging 30 percent—and more than that in several cases—based on an analysis of trends in 11 states and interviews with agency officials and developers active in others.
In response, state HFAs are urgently providing new financing, streamlining regulations and tapping federal fiscal recovery funds, among other steps, according to Abt Associates’ analysis. Affordable housing developers have worked with agencies to bridge the unexpected funding gaps by modifying project designs, pursuing additional sources of financing, and deferring the fees, the report finds.
