Developers of affordable housing are finding it harder to raise the money they need to get new projects off the ground, a challenge that stems from President Trump's proposal to cut the corporate tax rate.
Corporate investors, like banks and insurance companies, often invest in affordable housing to get tax credits. If corporate tax rates go down, so does interest in those credits. Though tax cuts are just a proposal at this point, the market has already softened significantly, says Jerilynn Martinez, marketing and community relations director at the Colorado Housing and Finance Authority, which administers the tax credits in the state. Developers are raising less money from corporate investors and are looking to close construction budget gaps as high as a million dollars, she says. Martinez spoke with Colorado Matters' host Ryan Warner.
