Affordable housing is one of the most pressing issues in the U.S. today. Demand is rising, supply is lagging, and property managers are often stuck navigating compliance and tight margins while still trying to create communities residents are proud to call home.
The good news? There are funding opportunities designed to help—but finding them (and understanding who qualifies) can feel like a full-time job. Below, we’ve outlined the biggest challenges facing affordable housing today, followed by key funding programs you should know about.
The Biggest Challenges in Affordable Housing Today
Before diving into resources, let’s get clear on what property managers and owners are up against:
- Rising Costs vs. Stagnant Rent Caps- Labor, utilities, and insurance keep climbing, but affordable housing rent limits don’t always keep pace, leaving managers squeezed.
- Compliance Complexity- Affordable housing often means multiple overlapping requirements (HUD, LIHTC, state programs). One missed form can put funding at risk.
- Underfunded Programs- Demand far outstrips available funding, making competition fierce. Managers need to be strategic in securing opportunities.
- Resident Expectations- Even in affordable housing, residents want digital rent payments, fast maintenance, and clear communication. Meeting these expectations without stretching staff too thin is a real challenge.
Affordable Housing Funding Opportunities
Here are the most important funding sources in the U.S., with a focus on how property managers can leverage them:
1. Low-Income Housing Tax Credit (LIHTC)
- What it is: A federal tax credit program that incentivizes private developers and investors to build or rehabilitate affordable housing.
- Why it matters: LIHTC has been the largest source of affordable housing funding in the U.S. for decades.
- How to use it: Partner with developers or investors to secure credits, or manage LIHTC properties where compliance is critical.
2. Housing Choice Voucher (Section 8) Program
- What it is: Provides rental assistance directly to residents, covering a portion of their rent.
- Why it matters: Guarantees consistent rent payments for landlords while supporting residents with limited income.
- How to use it: Work with your local Public Housing Authority (PHA) to accept vouchers and ensure units meet inspection standards.
3. HOME Investment Partnerships Program (HOME)
- What it is: Federal block grants given to states and localities to fund affordable housing development.
- Why it matters: Flexible funding that can be used for building, buying, or rehabilitating housing for low-income residents.
- How to use it: Apply through your state or local housing agency; many managers use HOME dollars alongside other programs like LIHTC.
4. Community Development Block Grant (CDBG)
- What it is: HUD-administered grants given to cities and counties to support housing and community development.
- Why it matters: Often used for rehabilitation and infrastructure improvements in affordable housing projects.
- How to use it: Reach out to your local government to see what CDBG funds are allocated for housing in your area.
5. Federal Home Loan Bank (FHLB) Affordable Housing Program
- What it is: Grants and low-cost loans for affordable housing, distributed through regional FHLBs.
- Why it matters: A strong option for gap financing.
How to use it: Partner with a member bank in your region to apply for competitive funding rounds.
6. State and Local Programs
- What it is: Beyond federal programs, many states and municipalities offer their own tax credits, bonds, and grants.
- Why it matters: These can be less competitive and more tailored to local needs.
- How to use it: Check with your state housing finance agency or city housing department for current programs.
How Property Managers Can Stay Ahead
Knowing where funding comes from is only part of the puzzle. Managing compliance and resident expectations is just as critical. Property management software built with affordable housing in mind—like ExactEstate—helps you:
- Automate compliance tracking
- Simplify reporting
- Streamline communication with residents
- Keep operations lean while maximizing funding impact
Affordable housing is a tough space: demand is high, funding is competitive, and compliance can feel like a minefield. But with the right mix of resources and technology, property managers can not only keep properties financially sustainable but also create communities where residents feel supported.
