Financing of community development projects involves a range of public and private sources of capital. This course will introduce students to various financing sources, their programmatic requirements, and underwriting approaches, including the valuation of collateral. On completing the course, students will have an understanding of the framework surrounding the real estate/community development process, which will assist them in planning projects, interacting with government authorities, contracting project team members, and securing project financing.
Using actual transactions as examples, and focusing on urban markets, students will work through the challenges and opportunities inherent in the financing of various types of projects, including: affordable and mixed-income housing, mixed-use development, and neighborhood-scale commercial projects, including retail and community facilities. Students will be exposed to a variety of financing tools (Low-Income Housing Tax Credits, tax-exempt bonds, New Markets Tax Credits, etc.), and public sector programs needed to make social impact projects feasible, while also learning to evaluate whether the risk-adjusted economic returns warrant “doing the deal”. In addition, the course will explore the following questions: who are the players in the community development and real estate space? Who are the capital providers in both the public and private sectors? Who are the developers? Can you profit being a socially-responsible developer? What role do nonprofits play? Guest speakers will include for-profit and nonprofit developers, investors, and public sector officials.