By Louis Martin, RCAC staff writer
The Affordable Housing Finance editorial advisory board recently weighed in on major factors that are likely to influence the industry in 2020. They cited five key indicators to watch in the coming year:
- The presidential election will likely have a huge impact on affordable housing policy. New administrations can almost unilaterally change housing subsidy programs, such as the Low Income Housing Tax Credit (LIHTC). Several democratic candidates have outlined broad plans to combat housing insecurity.
- Labor costs continue to rise during the housing boom. Contractors will need more incentives to draw them to LIHTC projects.
- Modular housing continues to trend upward as an affordable alternative to traditional home construction.
- In December 2019, federal regulators proposed significant overhauls to the Community Reinvestment Act (CRA). Critics of the new plan raised concerns that it will open up new loopholes for discrimination and the practice of “redlining” where banks can avoid investments based on community demographics. As of January 2020, the proposed new rule is still open for public comment.
- Homelessness in America continues to rise on the West Coast.
Read the full Affordable Housing Finance article here: https://www.housingfinance.com/management-operations/affordable-housing-watch-list-for-2020_o