Explores issues relating to the development, financing, and management of housing affordable to very low, low, and moderate income households. Examines community-based development corporations, public housing authorities, housing finance agencies, private developers, and financial intermediaries. Identifies, defines, and analyzes seven general public and private subsidy categories: development cost, financing, operating, rental assistance, tax credit, entitlement, and project-generated cross-income subsidies. Assesses alternative debt and equity funding sources for both rental and for-sale mixed-income housing and addresses how multiple subsidies are aggregated to create an economically feasible development. Reviews other aspects of the affordable housing development process, including assembling and managing the development team, preparing feasibility studies, negotiating site control, gaining community support, securing subsidies, establishing design objectives, coordinating the design and construction process, selecting residents or homeowners, providing supportive services, and managing the completed asset. All students in this course must participate in the Affordable Housing Development Competition (AHDC) sponsored by the Federal Home Loan Bank of Boston and others. As part of this competition, teams of multidisciplinary Boston-area graduate students primarily from Harvard and MIT prepare detailed affordable housing development proposals working with real sponsors on real sites in the Greater Boston area. These AHDC proposals serve as the final project for this course. The course includes lectures, cases, exercises, virtual site visits, guest lectures, and student presentations. No prior real estate development or finance experience is anticipated or required.
MRE students have prioritized enrollment in the GSD Limited Enrollment Course Lottery. All MRE students who select this special MRE elective in the Lottery will be enrolled, with additional seats potentially available to other students.