Our Model
We believe that Lancaster County’s middle-income housing problem is actually a financing problem.
Financing is part of the housing equation most people never think about—but it’s a critical hurdle to developing more affordable rental units.
Most affordable housing projects are financed with Low-Income Housing Tax Credits (LIHTC), which presents several challenges.
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Limited tax credits are available, leading to intense competition.
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In LIHTC-funded housing projects, the average income of renters in all units cannot exceed 60% of the AMI. This means many renters in the 61–80% range won’t qualify for LIHTC-funded housing, even though they can’t afford market rates.
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Projects often take years longer to complete because of lengthy approvals and regulatory hoops.
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Due to longer timelines and tighter regulations, projects cost up to 50% more than equivalent market-rate projects.
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Many projects rely on selling tax credits to investors in exchange for upfront cash. The value of credits has dropped in recent years, meaning projects get less funding.
A new financing model
Rather than relying on Low-Income Housing Tax Credits (LIHTC), we’re pursuing a new funding model to serve renters making 50–80% area median income.
We’ve received a $10 million commitment from our visionary funder, the High Foundation.
We aim to match this with additional philanthropic support and nontraditional public funding. Together with rental income from our properties, these resources will fuel a revolving fund—allowing us to sustainably expand the supply of middle-income rental housing in our community.
What’s middle-income housing?
We’re creating rental housing for Lancaster residents making between 50% and 80% of the area median income. This will help fill the gap for people who can’t find subsidized low-income housing, but can’t afford market-rate rents, either.
Let’s prioritize housing for our
hardest-working neighbors.
