Building the Future of Affordable Housing: Lessons from POAH’s Experience

By Rodger L. Brown, Jr., Managing Director of Real Estate

This article is based on a keynote presentation by Rodger Brown, POAH’s Managing Director of Real Estate Development, for the Developers Workshop at The Idea Center at Miami Dade College.
 

For decades, affordable housing developers have built hundreds of thousands of rental apartments to serve families, seniors, and individuals with disabilities. But in recent years, there had been an additional focus on mixed-use, transit-oriented, and workforce housing—developments that provide not only homes but also greater access to jobs, services, and transportation. These projects are often more complex and costly, but their long-term benefits to communities make them critical investments.

- Workforce housing fosters economic diversity and community stability, making cities and towns more attractive to residents and local governments.
- Mixed-use developments integrate essential services, retail, and community spaces into traditionally isolated residential complexes, addressing transportation and accessibility challenges.
- Transit-oriented developments reduce reliance on cars, lower transportation costs for residents, and contribute to sustainability goals.

However, ensuring long-term affordability and success for these developments requires innovative preservation strategies, expanded partnerships, and diverse funding structures. At POAH, we’ve found that it all starts with community engagement—involving residents in planning ensures that our developments truly serve their needs.

Transforming Communities: Case Studies in Innovation

Chicago: Revitalizing a Failing Housing Project into a Thriving Community
In 2008, POAH partnered with residents on Chicago’s South Side to transform a failing housing project into a vibrant neighborhood. The result: a mixed use corridor featuring five residential buildings, a 40,000-square-foot supermarket, a renovated transit station, a workforce training center, and ground-floor retail spaces, including the city’s longest-running restaurant.

Funding came from a HUD Choice Neighborhoods Implementation grant—one of the first in the nation—along with New Markets Tax Credits, tax-exempt bonds, and LIHTC. This complex financing mix was key to ensuring long-term affordability while supporting economic development.

Florida: Preserving Affordable Housing through Creative Financing
POAH has also tackled affordability challenges in Florida, preserving over 800 affordable apartments while assisting a failing non-profit sponsor manage their bankruptcy and providing needed capital improvements to those assets.  One of those trouble assets is now the centerpiece of a neighborhood transformation initiative being funded by the Choice Neighborhood program.

In another Florida transaction, we partnered with a religious institution to preserve 500 units of senior housing using 9% tax credits and tax-exempt bonds—demonstrating how unconventional partnerships can stabilize affordable housing.

Boston: Expanding Public Housing into a Mixed-Income, Transit-Oriented Community
In Boston, POAH transformed a 1940s public housing site into a 356-unit, mixed-income, transit-oriented community spanning three city blocks. The redevelopment included retail space, new streets, and an outdoor play area, making it an attractive option for the city’s “Eds & Meds” workforce—educators and healthcare professionals priced out of market-rate housing.

Financing required 4% and 9% tax credits, MassHousing Workforce Housing funds, and income averaging to create affordability across multiple income bands. The project’s success underscored the importance of flexibility in redevelopment to meet both affordability and community goals.

Somerville: Modular Construction as a Solution to Housing Costs
In Somerville, MA, rising housing costs pushed POAH to explore innovative solutions. Partnering with private developers, POAH sold part of a public housing site to subsidize affordable and workforce housing while integrating retail and community spaces.

When construction costs posed a challenge, POAH turned to modular housing, allowing for faster, cost-effective development. This will likely be one of the largest modular affordable housing projects in the country, proving that new building technologies can keep developments financially viable.

Evolving Financing & Policy Tools for Long-Term Affordability
Over the years, POAH has expanded its financial and policy toolkit to stay ahead of changing real estate markets and resident needs. Beyond traditional deed restrictions and ground leases, we’ve leveraged:
- Low-Income Housing Tax Credits (LIHTC) to finance mixed-income housing.
- State and local housing trust funds to secure soft debt.
- HUD’s Choice Neighborhoods, RAD, and Section 8 programs to preserve public housing.
 - Capital Magnet Fund and General Obligation bonds to attract private investment, made possible by POAH’s A+ credit rating from Standard & Poor’s (S&P).

The Role of Advocacy: Fixing Systemic Barriers to Development
While financing strategies have evolved, external challenges continue to threaten the development of affordable housing—from skyrocketing insurance costs in Florida to fluctuating interest rates and rising construction expenses. Developers must be proactive in advocating for policy changes to address these obstacles, including:
- Streamlining approval processes to reduce bureaucratic delays.
- Expanding project-based vouchers to create deeper affordability.
- Improving LIHTC policies to support preservation without requiring full recapitalization.
- Encouraging public-private partnerships that leverage resources efficiently.

Beyond Buildings: Investing in People and Sustainability
POAH is committed to building smarter and more sustainably. Across our portfolio, we’ve implemented solar panels, energy-efficient retrofits, and Passive House/Net Zero design to reduce operating costs and maintain affordability.

We’ve also invested in resident success through our Community Impact program, which integrates health, education, and job training services into housing developments—helping residents achieve economic mobility.

Conclusion: Navigating the Future of Affordable Housing
The success of POAH and other mission-driven developers depends on navigating complex funding landscapes, strengthening public-private partnerships, and advocating for policies that ensure long-term affordability. By fostering collaboration across government agencies, leveraging innovative financing, and keeping resident needs at the center of development, we can build sustainable, inclusive communities that stand the test of time.

Rodger Brown is the Managing Director of Real Estate Development at POAH. Since joining POAH in 2004, he has helped grow the organization’s portfolio to more than 14,000 apartments in 13 states and the District of Columbia.