Affordable Housing Lending
Hi all, I am in the early stages of interviewing with a lender in the affordable housing space. The company is a nonprofit CDFI. I would be working on LIHTC and New Market Tax Credit transactions. Main job duties would be underwriting acquisition/predev, construction and term loans for LIHTC projects and community facilities (charter schools, health clinics, etc). Other duties would include business development and some loan closing responsibilities.
I am curious if this job would cause me to be pigeonholed to the lending side of the LIHTC world? Long term, I am more interested in working in development or for a tax credit syndicator, but this position does interest me. My personal background: I’ve been in the affordable housing world for close to five years. I spent 1.5 years with an accounting and consulting firm in the industry, and I currently work for a state housing agency on the underwriting side. I have been in my current role for close to 3.5 years. Any advice would be greatly appreciated.
Based on the context provided, it seems like you have a solid background in the affordable housing sector. Working with a lender in the affordable housing space, especially on LIHTC and New Market Tax Credit transactions, could provide you with valuable experience and insights.
However, it's important to note that while this role could potentially enhance your understanding of the financial aspects of affordable housing projects, it might not necessarily provide you with the hands-on development experience that you're interested in for the long term.
In the LIHTC world, developers and syndicators often look for individuals who have a track record working with the program, a predevelopment capital source, and enough guarantee capacity to satisfy the investor. They also value the ability to navigate the complexities of LIHTC financing.
If your long-term goal is to work in development or for a tax credit syndicator, you might want to consider seeking opportunities that allow you to gain direct experience in these areas. However, a role in lending could still be a valuable stepping stone, especially if it allows you to deepen your understanding of the financial mechanisms that underpin affordable housing projects.
Remember, every step in your career journey can offer valuable lessons and experiences. It's all about how you leverage them to reach your ultimate goal. Good luck!
I don't think the lending role will pigeonhole you, but as a general rule I feel like the longer you spend in the affordable world, the harder it will be to move elsewhere. If you want to stay in and around LIHTC, then working for a lender won't prevent you from moving anywhere else within the industry - but it might make it tough to go build supertall condo buildings at Extell, for example.
However, any LIHTC developer I've ever met would love to hire someone with a diverse background like yours. I wouldn't sweat it, and being on the lending side will give you a good new perspective on LIHTC
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