Contrary to popular belief, anyone can apply for Section 8 housing assistance. This does not mean however, that everyone is accepted. Once someone has been approved for Section 8 assistance, that person can reside anywhere, not just pre-designated Section 8 housing assets. In some states, those with Section 8 housing assistance cannot be denied rental access in market rate housing assets, there must be other factors in the denial of housing.
Private affordable housing assets (Not Housing Authorities) are typically financed through tax credits. Not only are these assets highly regulated at a federal level, but they are also regulated through the financing they receive. In order to protect the affordable housing tax credit status on their assets, lenders will add more stringent regulations on top of federal regulations.
The same type of claims that occur at affordable assets also occur at market rate assets. However, many times the claims at affordable assets settle at a much lower total than those at market assets. The income associated with claimants who are accepted into these assets tends to be lower. Therefore there is a lower loss of income price tag associated with the final payout of the claim.
Environmental, Social and Governance
As Environmental, Social, and Governance (ESG) becomes more and more intertwined with clients' financial and operational goals, delivery of affordable housing assets is one way developers can make a positive commitment to the communities they operate in.