Bringing Early Learning Centers and Affordable Homes Together
How can early learning centers and housing be combined into a single project? Financing can be complicated and daunting, but Enterprise experts offer guidance to both the affordable housing and early learning sectors as they expand their ability to develop these multi-use buildings to benefit their communities.
As part of our Home and Hope Initiative in the Pacific Northwest, Enterprise is hosting several events in 2019 to train our nonprofit partners in this type of development. The first session, held on April 23, explored ways to include early learning facilities in affordable housing projects that are financed with the Low-Income Housing Tax Credit.
A sign of the growing need for these mixed-use buildings, the session was attended by more than 25 affordable housing developers, early learning providers and funders of both sectors, who were eager to learn how the housing credit could be used to help finance early learning facilities that are developed in conjunction with affordable housing.
Philip Porter, vice president for acquisitions at Enterprise Housing Credit Investments, and Andrea Sato, shareholder of Kantor Taylor, offered expert information about many technical aspects of project financing, including proration of costs between the residential and nonresidential portions of a building. In addition, they answered questions and discussed provisions of Internal Revenue Code Section 42 on the housing credit and related revenue rulings that suggest some guidance, while cautioning participants that each project is unique and will require engagement of counsel.
Enterprise VP and Pacific Northwest Market Leader M.A. Leonard, as the moderator for the session, quipped that though the discussion was certainly vital and fascinating to the professionals in attendance, she does not anticipate it will be repeated at Benaroya or the Paramount in the near future, unless it can somehow be set to music a la “Hamilton.”
Stay tuned for announcements of future sessions by signing up for our Pacific Northwest newsletter.