Investors are typically for-profit banks looking to get 10 years of tax breaks on their federal taxes.

Corporate developers, thanks to HUD and IRS rules, are able to skirt union labor laws, only have to pay minimum wage, many times don’t pay healthcare and are allowed to avoid local zoning and permit laws.

They can also mismanage finances and force the LLC into insolvency, which can accelerate the transfer to market rate.

Corporate developers(frequently out of state)and building owners make money from massive tax breaks, overcharges and excessive management fees.

Homeless individuals and independent students easily fall out of these income brackets and rarely qualify.

An applicant typically needs to have strong credit, clean records, proper immigration status, and have 50–80% of the average mean income of Alameda County.

Covenants(agreements between the building owners, managers and local authorities to maintain the tax-break status of the project)will eventually expire allowing units to suddenly ramp up to prevailing market-rate rents.

It’s really “middle income.” Alameda County’s average median income is close to 130,000 dollars and HUD bases income on AMI. Low income to them is not what you think of as low income.

“Low Income” is defined by Federal Housing Authority (H.U.D.) and its corporate alliances.Too many middlemen taking a cut with costs hitting almost a million per 2 bedroom unit in Los Angeles. “Affordable Housing” is not affordable to build.The average yield was 4.75% in 20 interest rates are considerably higher. “For-profit” investor take can range from 4 to 6%.81% of affordable housing is eventually owned by for profit companies. The “non-profit” component is a small, temporary intermediary and used as a shield which for-profit developers, banks, large contractors, lawyers, syndicates, consultants, and management hide behind.

“Affordable Housing” is a convenient marketing term developed by the Reagan and Bush Administrations since the early 1980s as a vehicle to “de-ghetto” urban cities.

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