Shortfalls in Gap Financing Sources Force Developers to Use Alternative Funding Strategies

摘要

Some developers are turning to alternative sources for gap financing for low-income housing tax credit and other affordable housing projects as federal, state and local governments trim funding for housing programs. "We're having significant difficulties in finding gap financing," said Joel Silver, regional vice president for the Michaels Development Company in Marlton, N.J. Silver oversees projects in New Jersey, where the primary funding comes from a revolving housing trust fund financed from real estate transfer taxes. As a result of the recession and the downturn in the real estate market, revenue for the program "became nonexistent," Silver said.