How to Sequence Funding for Affordable Housing Development (Experience from 11,000+ Units at Jamboree!)

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Roger Kinoshita, SVP of Acquisitions at Jamboree Housing, dismantles the most persistent myths about affordable housing development and explains how experienced developers actually finance, entitle, and build affordable homes in California.Most people assume affordable housing lowers nearby property values, takes forever to build, and relies on impossibly complicated financing. Roger challenges all three with real data and decades of experience. Studies from UC Irvine and the Urban Institute both found that affordable housing increases surrounding property values, not the reverse. And while the capital stack does involve 5-7 funding layers, it follows a predictable sequence that developers can learn and apply.Common Questions This Podcast Episode Answers:• What are the biggest myths about affordable housing development?The most persistent myths are that it lowers nearby property values and takes far longer to develop than market-rate housing. Both UC Irvine and Urban Institute research found the opposite: affordable housing increases surrounding values.• How does the capital stack work in affordable housing development?Affordable housing deals typically layer 5-7 funding sources. The sequencing rule is: city first, then county, then state programs, then federal sources like LIHTC. Each level expects commitment from the levels below before committing.• What is LIHTC and how does it finance affordable housing projects?LIHTC (Low-Income Housing Tax Credit) is a federal program that allocates tax credits to states, which developers sell to financial institutions. Roughly $1 million in credits raises about $850,000 in equity and represents approximately 35% of a project's capital stack.• Does affordable housing lower property values in the surrounding neighborhood?No. Both the UC Irvine and Urban Institute studies found that well-designed affordable housing does not lower surrounding property values. Both found it actually increases nearby values.• What is AHSC and what projects does it fund?AHSC (Affordable Housing and Sustainable Communities) is a California program that funds transit-oriented affordable housing with the primary goal of reducing greenhouse gas emissions. Projects near transit score highest in the application process.• What triggers prevailing wage requirements on affordable housing projects?Prevailing wage applies when a project receives housing trust fund money or municipal grants subject to Davis-Bacon or state equivalents. In Northern California, union carpenters earn approximately $60 per hour under prevailing wage.Key Takeaways:• UCI and Urban Institute research directly refutes the property value objection. Bring that data to community meetings and city council presentations.• Sequence financing applications in the right order: city first, county second, state third, federal last. Applying for LIHTC before local commitments are secured wastes application cycles.• SB4 creates site acquisition opportunities for developers willing to partner with faith institutions that own underutilized parcels and parking lots.Don't forget to check out Jamboree Housing's work at: jamboreehousing.com Please follow Roger on LinkedIn or reach out to him via email: [email protected]: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions. 00:00 Podcast Trailer03:34 Intro06:32 What is the Most Important Skill You Need for Affordable Housing Development? 10:18 How to Sequence Funding for Affordable Housing Deals (Where to START?!)14:04 What are the BIGGEST Myths About Affordable Housing?!24:47 How to turn an old building into 48 housing units (real life example)!26:24 How can a church turn land Into homes for families & seniors?42:05 Why Is Affordable housing (i.e. lack of supply)  Hard to Solve?43:52 What Housing Bonds Are For (And Why You Should Vote to Support)45:35 Where/How to contact Roger?