As income levels fall, it becomes more difficult to solve the housing problem through traditional financing.
Alecia Hill, vice president of Investments, Housing Affordability and Preservation at Federal Capital Partners, said this at a Business Roundtable held as part of the 13th session of the World Urban Forum (WUF13), Report informs.
Hill highlighted the social and economic impacts of housing affordability.
"For us, addressing housing affordability is just good business. We fully understand that the lack of housing affordability and opportunities is placing increasing economic strain and burden on citizens in our communities. This, in turn, indirectly has a negative impact on their participation in society and access to opportunities. As you move down the income curve, it becomes extremely difficult to solve this problem solely through traditional financing or traditional equity investment. Therefore, we have been able to make use of certain tools, such as the low-income housing tax credit, and other solutions through public-private partnerships. We see this work being carried out at the local level, even down to the county and community level," she said.
The company official also noted the framework for assessing risks in the investment process.
"If you can identify a risk, you can measure and assess it, provided that there is an established structure in which you can have full confidence. We invest across the United States, and although climate risk is a serious concern in some areas, our investment process requires the assessment of these risks and reliance on existing structures," Hill said.