Underwriting for Resilience
The development and underwriting of affordable housing is changing due to the pandemic and our country’s rising awareness of racial equity. This webinar explored the emerging awareness in our industry from the perspective of lenders and investors -- from a vision of housing that is financially sustainable to that of resilient housing that promotes health, equity, and can weather disasters. The pandemic is a wake-up call for the industry – our end goals for the property, residents and communities need to be aligned and equitable.
Asset managers need to understand what is on the horizon. They are traditionally brought into the development stage to test whether a proposed project meets financial goals. But in 2020 and beyond, asset managers and their organizations will also be embracing social, health and equity goals.
Jim Fox, JPMorgan Chase, talked about what the performance to date of the 4,500 properties across his portfolio and how they are stress testing in the time of the pandemic. The conversation helped participants see a broader picture of the components or resources that need to be tested for a comprehensive resiliency plan.
Cat Vielma, Redstone Equity Partners, talked about new perceptions of risk. “Risk is the possibility there is danger. Resiliency is recovering quickly from the problem. These are two highly subjective items in underwriting world.” She talked about changes in underwriting criteria now and possibly in the future, and what may be ahead for rent collections in August. Asset managers and underwriters have innovated how they handle many types of tasks, like site visits, through the use of technology, and many of these will be adopted as standard practices.
Chrystal Kornegay, MassHousing, challenged us to expand our view about resiliency to that of residents and communities. “The resiliency of the property doesn’t matter if the residents cannot live there. We need to think about the whole ecosystem.” Discussion led to ideas on how underwriting needs to think about the health of the residents and communities.
As an added bonus, moderator David Smith, International Housing Institute, introduced us to ideas about “health secure housing” as a new standard in multifamily dwellings. See below for links to resources about this topic.
Health Secure Housing: An Urgent New Standard in Affordable Housing
The Guru is In - Inclusive Healthy Housing Infrastructure
Affordable Housing Institute
James A. Fox
Managing Director - Housing Investments
Senior Vice President, Acquisitions
Redstone Equity Partners
Vice President, Asset Management
This webinar is free thanks to our sponsors!