Access to safe, clean, affordable housing is a key part to human flourishing and a very important aspect in making this a reality is having enough supply at different price points to meet the demand. Unfortunately, our current health and economic realities are putting more pressure on this.
Little did policy makers know when they passed the legislation for Opportunity Zones in The Tax Cut and Job Act of 2017 how timely and important this would be in 2020. The goal of the opportunity zones legislation was to incentivize private capital to invest in underserved communities. The years of work and clarity on this program is made for such a time as this. Qualified Opportunity Zone Funds are timely for investors who are looking to diversify outside of the stock market with the potential for competitive risk adjusted returns while also enjoying some tax benefits. For residents and communities in need of housing, Opportunity Zones could be a catalyst to help spur economic development in their backyard. It’s not often you find a potential win/win/win but Opportunities Zones may just be that trifecta.
Over the last decade most multi-family development has been on the two ends of the spectrum: Class A properties and to a lesser extent Affordable Housing developed with tax credit dollars . In between those two falls Workforce housing which serves the backbone of communities like teachers, fireman, policemen, healthcare professionals, and service industry professional . Collectively they are often referred to as the “missing middle”- those making modest incomes . Across America there is a shortage of workforce housing and with the realities of COVID-19 and the ensuing economic fallout it is unfortunately these lower wage earners who are disproportionately impacted. Blacks, Latinos, women and the young are specifically feeling the biggest economic realities from COVID .
Now is the time to act with a uniquely created, bi-partisan tool to drive investment return, tax benefits, and positive impact on communities that need that investment the most. People, now more than ever, want to be a part of rebuilding America and their own portfolio. Workforce housing development can be part of the solution to delivering safe, clean, affordable housing.
Alliant Strategic Investments is committed to the mission of developing and preserving quality affordable housing. With an experienced, dedicated team of experts, they partner with like-minded investors to deliver mission-oriented results in diverse markets across the nation.
See how Alliant Strategic Investments is working with industry leaders to address America’s affordable housing crisis.