About Us

LISC's Affordable Housing Preservation Initiative is dedicated to reducing the loss of rental housing that is affordable to low-income families, especially among the 1.6 million units of federally-assisted housing facing expiring rent and mortgage subsidies. The program provides technical support to LISC's field offices and local CDCs; seeks new financing solutions to support preservation activities; and develops and maintains partnerships with other nonprofit stakeholders to help keep these properties safe, in good repair, and affordable for low-income families.

Affordability covenants or government contracts for subsidized multifamily housing units are reaching their maturity dates, and many owners have chosen to end their affordability agreements or to let the subsidies expire in order to offer the housing at much higher prevailing rents. Other properties are facing financial or physical difficulties that are beyond the ability of current owners to address. This expiration of subsidies and rent restrictions will accelerate in the next few years, primarily affecting properties that were originally developed under the HUD Section 221(d)(3) Below Market Interest Rate (BMIR) and Section 236 mortgage subsidy programs, the Section 8 New Construction and Substantial Rehabilitation programs, and the USDA Rural Housing Service Section 515 program. As property values have climbed nationwide, the risk of conversion of housing from low-and moderate income rental stock to non-affordable uses has increased.

LISC has taken a lead in helping CDCs to respond. It has helped CDCs acquire and preserve housing developments where need and opportunity were greatest; build partnerships with housing authorities and other potential investors in affordable housing; and advocate for policies that can mitigate the loss of units. LISC has already committed over $41 million to preserve affordable homes, and with our affiliated National Equity Fund has preserved some 50,000 affordable units. LISC also has an affiliation with the Community Development Trust (CDT), a Real Estate Investment Trust dedicated to preserving affordable multifamily housing by focusing on resolving the tax issues confronting owners.