Introduction

• Author: Alysse Hollis - Richard M. Froehlich
• Pages: ix-xii

The demand for affordable rental housing has consistently out-

paced the supply of such housing. A study by the Joint Center

for Housing Studies of Harvard University published in June of

2014 found that more than a third of U.S. households live in hous-

ing that exceeds their means, and more than a quarter (28%) of

renter households paid more than half their incomes for housing.

1

The federal government has recognized the challenges inherent in

providing and maintaining a consistent supply of safe and afford-

able housing, and has created a number of subsidies to support

this effort. One of those is the ability to utilize tax-exempt bonds,

which historically offered lower rates than comparable taxable

debt, and which may also be coupled with additional federal and

state subsidies such as low-income housing tax credits and low-

interest loans or grants.

In 2012, approximately $5 billion of tax-exempt multifamily

housing bonds were issued.

2

Multifamily housing bonds accounted

for approximately half of all private activity bonds issued in the

1. http://www.jchs.harvard.edu/sites/jchs.harvard.edu/les/sonhr14_txt_

bw-full.pdf.

2. “Housing Solutions: What Role Should Affordable Multifamily Housing Bonds

Play?” posted September 11, 2014 by Peter Lawrence on Notes From Novogradac, A

blog by Michael J. Novogradac, CPA at https://novogradac.wordpress.com/2014/09/11/

housing-solutions-what-role-should-affordable-multifamily-housing-bonds-play.

ix

Introduction

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