DST Inquiry Team - July 10, 2025

On occasion, the Brown Ranch Deliberation and Stewardship Team forms Inquiry Teams to take a “deeper dive” on key issues and topics relevant to the work of the DST. The Inquiry Teams explore concerns and issue areas, seeking any consensus points that can help inform the DST’s decision of whether to proceed to subsequent phases. On July 10, a DST Inquiry Team met to explore the funding and financing tools and mechanisms used by housing authorities, cities, and large-scale developers to close the gap between development cost and affordable home prices, and to finance large scale public improvements.

Clarification on Response to DST Question on Low-Income Housing Tax Credit (LIHTC) affordability period:

LIHTC properties have a 15-year compliance period with the IRS, followed by another 15-year extended-use period, during which they must maintain affordability for low-income residents. After this 30-year affordability period, owners are generally able to convert the units to market-rate housing, unless a mission-driven entity purchases the development to further extend the affordability period.

YVHA has the right of first refusal to buy all tax credit projects they have helped develop, and will continue to ask for this in any future LIHTC development they participate in. If YVHA has the capital (forecasting and planning for this is underway), they can buy out for-profit developer partners and keep the housing units affordable. There are financing tools available to a housing authority to continue to extend the affordability period, as well as to continue maintenance and upkeep of the properties. The YVHA property management and finance teams are actively exploring these tools and working on financial planning.