Community Development Block Grant and other incentive programs have spurred a significant number of new subsidized units.
These programs incentivize builders with grants and tax credits that reduce the construction cost provided that they rent a percentage of the units to lower income Tenants.
Problems can occur if there are a lack of tenants that qualify for the subsidized units. The developers will get very aggressive in securing tenants for both the subsidized and market rate units.
The end result is increasing competition for owners of non-subsidized properties as the new units come on line.
Brand new is a powerful draw.
Our opinion is that the market is reaching saturation for subsidized units. We have talked to property Managers who say that they are having trouble finding enough qualifying tenants for the subsidized units.
We recommend that all owners keep informed on these programs and stay in touch with your city Leaders and Council people.