Affordable Housing Internship - too niche?
Hi all, I am considering an affordable housing acquisitions and development internship with a large affordable housing developer (L+M Development Partners). Is this too niche of a field? I'm looking to recruit for multifamily (market rate) or mixed use development the following year? Will the experience translate to other asset classes as my understanding is that affordable housing is re development with another completely different layer on top of it.
I've had internships in two of the other major asset classes, but I'm worried about jumping into something too niche. Would this look good? How will this viewed by other shops, whether that repe shops or development shops? Thanks
I only think it will limit you if you stay in the affordable space for >5 years. I’d say it’s easier to go from affordable to standard multi family than the other way around.
got it, thank you. Given that this is a summer internship and I've had two other internships in the major food groups, do you think it would be looked upon favorably by repe or market rate developers?
It's an internship - no one is going to knock you for it. Don't worry about it. You may even find you want to do affordable over market rate. Take it for the experience.
Agreed. Affordable is red hot right now with no signs of slowing
Officially have seen it all on WSO. We now have interns thinking a 3-month stint will forever pigeonhole them.
Lmfaooooo
I see affordable housing as a good sector, and L&M is a good company
Not to pile on, but um yeah, it's an internship..... why you even have this concern is well concerning (but I guess not surprising given discourse on WSO).
I'll add that L+M is very well known/recognized, great name for your resume.
They also do a fair bit of non-affordable housing. No idea what OP will be doing, but as far as I know they're not a shop that churns Year 15 LIHTC re-syndications. Lots of mixed income and mixed use new development going on. Even some of the pure affordable development has cool aspects (though I'm thinking specifically of the project that has the Hip Hop Museum).
Currently in affordable housing and L+M is good company but would suggest looking at market rate once it’s time to look at full time gigs. The complexity of affordable is overrated. It's only complex because of damn paperwork you have to fill out for various funders LOL. Some articles have stated that 7 millions units are needed to meet demand around the nation. Given how long it takes to get these deals done most of that void will be filled with non subsidized funds, unless government intervenes in a real way. I’m definitely trying to go back to market after two years in affordable. Just food for thought.
I think this is a bit reductive. Saying it's only complex because of "the paperwork" is wrong both technically and philosophically. Affordable deals routinely have half a dozen sources of capital, be it subsidy providers with different terms and docs (think HPD vs HDC in NYC), multiple sources of tax credits (I've seen 2-3 on the same deal), deferred fee, equity, etc... and all of which have stringent regulation around what they apply to (e.g. the talk of changing the 50% test to a 25% test). Is this rocket science? Of course not. But compared to building, say, a condo building, it certainly is complex. Nothing in the finance world is "difficult" in that sense.
Also, when your profit or loss on a deal depends on delivering tax credits, and millions are at stake if you get either an upward or downward adjuster, that "complexity" becomes real important, real fast
Point taken but they mentioned that this opportunity is an internship. For a person to see what you mentioned above may take 3-4 years in this cycle because of the "complexity." Yes affordable can be less risky but also can take 2 to 3 times longer to complete a project compared to market rate. All I'm saying if you want quicker career progression, I'd hang my hate on market rate development aka developments that doesn't use government subsidy. (workforce housing, naturally occurring affordable housing acquisition and rehab, co-living, etc) It's not just condo.
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