Good Morning,
As non-profit developers and housing authorities, our public sector mission partners, struggle to develop affordable housing due to bond cap volumes, high construction cost, and high interest rates a new tool has emerged called Essential Purpose Bonds (EBP). The program is widely used in the state of California and limited jurisdictions in Texas. The most controversial part of the program is private developers making large fees that potentially leave the local housing authorities with limited sale or refinance opportunities GHF and TGHA have partnered with Goldman on a new model allowing rents to decrease over time: allowing greater impact & non-profits the option, but not the right, to purchase the property after 15 years.
