Explores issues relating to the development, financing, and management of housing affordable to low and moderate income households. Examines community-based development corporations, public housing authorities, housing finance agencies, private developers, and financial intermediaries. Identifies, defines, and analyzes development cost, financing, operating, rental assistance, tax credit, entitlement, and project-generated cross income subsidy vehicles. Assesses alternative debt and equity funding sources for both rental and for-sale mixed-income housing and addresses the now common practice of aggregating multiple subsidies into a single financial package. Reviews other aspects of the affordable housing development process, including assembling and managing the development team, preparing feasibility studies, controlling sites, gaining community support, securing subsidies, establishing design objectives, coordinating the design and construction process, selecting residents or homeowners, providing supportive services, and managing the completed asset. Historically, almost all students in this course have participated in the Affordable Housing Development Competition (AHDC) sponsored by the Federal Home Loan Bank of Boston and others. As part of this competition, teams of multidisciplinary graduate students primarily from Harvard and MIT prepare detailed affordable housing proposals working with real sponsors on real sites in the Greater Boston area. These AHDC proposals serve as the final project for this course. The course includes lectures, cases, exercises, site visits, guest lectures, and student presentations. No prior real estate development or finance experience is expected or required.
Also offered by Harvard Kennedy School as SUP-666