TREND TALK.

As the affordable housing industry continues to grow and evolve, fueled largely by the availability of federal Low-Income Housing Tax Credits (LIHTC), a new development paradigm has emerged. The old, public sector-driven approach, with government deciding how and where to build affordable housing, and providing rent subsidies and other types of financial incentives, has been replaced by a private sector model, with developers, commercial lenders, and community-based organizations taking the lead. Long Beach, California-based KAUFMAN AND BROAD MULTI-HOUSING GROUP, INC., and OPPORTUNITY BUILDERS, a regional nonprofit based in Salinas, California, have joint-ventured on a dozen affordable multifamily housing communities in three states since 1995, with more to come. Altogether, the two firms have partnered on some $100 million worth of tax credit projects.

FANNIE MAE, Washington, D.C., has provided credit support for more than $18 million in tax-exempt bonds issued by the INDUSTRIAL DEVELOPMENT AUTHORITY (IDA) OF ST. CHARLES COUNTY, Missouri. The bond proceeds will finance two affordable multifamily communities in the county, the 472-unit REMINGTON APARTMENTS in the city of St. Charles, and the 296-unit CASALON APARTMENTS in the city of O'Fallon. REILLY MORTGAGE CAPITAL CORPORATION executed the transactions using Fannie Mae's Credit Substitution, a credit enhancement tool developed to fit within the requirements of an existing bond structure and permit an easier transition when Fannie Mae steps in to replace the prior credit provider.