AnandKannan

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Demand for affordable housing is growing across the country,including in emerging markets like Denver. However, capital iscatching on to the need for affordable housing, both on newdevelopment projects and LIHTC-backed rehab projects. This capitalhas been an important aspect of bringing more affordable housing tomarkets suffering from a housing shortage.

"Investors such as banks and insurance companies are realizingthat there is incredible value in LIHTC-backed rehab projects,"Anand Kannan, leader of the preservation anddevelopment teams at Community PreservationPartners, tells GlobeSt.com. "In addition to offsettingtax burdens and providing a yield that is competitive tomarket-rate investments, an affordable housing investment comeswith significantly lower risk of vacancy."

It isn't only the financial benefits, but capital is alsoattracted to social impact benefits of affordable housing."Investors also enjoy the derivative impact of deploying capitalwith a purpose, which generates value in the form of PR andemployee productivity," says Kannan. "The rehab model,particularly, supports intangible value through environmentalsustainability because no property is cleaner than the one that'salready built. All of this ROI adds up to an enticing propositionfor those in charge of capital investments."