More investors could mean increased affordable housing

With more competition for the tax credits, investors will be willing to pay more for them resulting in larger sums of equity for low-income developments, according to the bill’s backers.

“It won’t cost taxpayers any more,” said Kenna Stormogipson, a policy and data analyst at the Hawaii Budget and Policy Center. “The state of Hawaii is already giving out these tax credits, but the price increasing is good because it means more money into affordable housing.” 

Put simply, she said: “It means more bang for your buck.” 

So how many more units of affordable housing will this enable? It depends on who you ask. 

Stormogipson projects it could enable one or two more projects per year. Developer Stanford Carr predicts it could fund thousands of new units in the coming years. Kevin Carney, vice president of EAH Housing in Hawaii, thinks it will keep affordable housing construction levels the same.

What there does seem to be consensus on is that if this change isn’t made, there will be less money available for affordable housing.