Al Marshall: Inside the Competitive World of Low-Income Housing Tax Credits

Affordable housing is needed across California, but getting a project built can be far more complicated than most people realize.

In this episode of SF Commercial Property Conversations with Bruce Bean, Bruce talks with Al Marshall about his journey from architect to real estate developer and his decades of experience working with affordable housing and Low-Income Housing Tax Credits.

Al’s interest in development started early. In high school, he designed a house for a science project. He later became an architect, started his own development company, renovated multifamily properties, built homes and townhomes, and eventually focused on apartments.

After moving to California, Al entered the affordable housing world. He initially questioned the tax credit program when it appeared in the 1980s. Within a decade, however, he was deeply involved in it.

Al gives Bruce a simple explanation of how the Low-Income Housing Tax Credit program works. Tax credits help provide equity for affordable housing projects, reducing the amount of debt a project must carry. Less debt can help developers keep rents lower.

But getting those credits is highly competitive.

Al explains why successful projects need more than a good idea. Developers must understand scoring systems, soft funding, set-asides, tiebreakers, land costs, and years of competition. He also discusses how dramatically construction costs have increased and why developers can spend significant amounts of money before knowing whether a project will receive an allocation.

Bruce and Al also explore another opportunity: surplus property owned by churches and other organizations. Al discusses how long-term ground leases can potentially provide landowners with an ongoing source of income while allowing their property to support affordable housing.

For anyone interested in affordable housing, commercial real estate, development, or California’s housing challenges, this conversation offers an inside look at how these projects actually come together.

----------------------------------------------------------------------------------------------------- We’re excited to feature your voice in the conversation about building wealth and legacies through commercial real estate. Join us to share your journey and insights with our growing audience! Learn more and apply at https://sfcommercialconversations.com/guest