Public Housing Development
With aging properties and dwindling resources, many Public Housing Authorities (PHA) need the assistance of an experienced affordable housing development partner to structure creative solutions to solve complex and ever-increasing problems. At Star Development, we excel at financially engineering transactions to benefit our PHA partners. Often this will include using or combining private activity tax exempt bonds with 4% Low Income Housing Tax Credits (LIHTC), obtaining competitive 9% LIHTCs, acquiring Home Funds or CDBG Funds, seeking out and then utilizing financing vehicles from state and local governments, in addition to numerous financing strategies.
Nationwide, over 3,400 PHAs are faced with the daunting task of rehabilitating their aging assets with limited help from their historical funding source, the U.S. Department of Housing and Urban Development (HUD). Over the last 50 years, HUD has provided grants and operating subsidies to help PHAs build, operate and maintain affordable housing projects. However, today it lacks the financial resources to maintain these properties alone. Therefore, HUD has encouraged PHAs to find additional sources of funding by creating new policies and procedures, thus facilitating their access to private money for project redevelopment.
Star Development possesses the unique expertise and experience required to help PHAs make the most of public and private sector funds. We work with PHAs to structure transactions that align with their specific goals. Whether that means rehabilitating existing PHA units or creating newly constructed mixed-income communities, Star Development can structure sound financial transactions, obtain the necessary funds and navigate the maze of HUD approvals required as part of a mixed-finance transaction.
Learn how we revitalized a community in Rockford, Illinois with new housing and infrastructure development. To learn more, click here.