Housing investors in Philadelphia, Pennsylvania who’ve been taking the slow boat to free market profits may soon find themselves diverted onto an unwanted around-the-world cruise by city council.
The slow boat involves government help with capital investment on new multi-home housing — assistance such as LIHTC (Low Income Housing Tax Credits).
In return for this kind of government assistance, landlords are required to hold rental rates at affordable levels for a specified number of years. When the restrictions expire, the owner can jack up rents to market levels.
But there’s another potentially lucrative option for an owner that frees them from affordable housing restrictions: selling the property. Philadelphia sees that as a threat to the preservation of the city’s affordable housing stock — or at least a threat they can do something about.
The proposed solution? Read more in The Philadelphia Tribune: Council Bill Would Give Nonprofits First Chance To Buy Affordable Housing Dwellings