12/17/2025
Preservation refers to maintaining existing affordable housing when rent restrictions expire or buildings deteriorate. With approximately 5 million federally assisted homes nationwide, over 374,000 face expiring affordability restrictions in the next five years (7% of the stock). Most at-risk units are LIHTC (52%) or project-based Section 8 (29%). Without intervention, these units convert to market-rate housing, displacing residents and reducing the supply of deeply affordable homes.
Preservation is often more cost-effective than new construction and maintains affordability in neighborhoods where residents have built community ties. Strategies include acquiring properties before restrictions expire, recapitalizing through new LIHTC or other financing, and extending affordability covenants. Tools like tenant opportunity to purchase acts (T**A), right of first refusal, and nonprofit acquisitions help ensure mission-driven ownership.
Affordable housing attorneys negotiate acquisitions from exiting owners, structure complex financing combining multiple subsidies, and ensure compliance during ownership transitions. We review existing regulatory agreements, assess transfer requirements, and navigate LIHTC “Year 15” rules and qualified contract provisions. Preservation work requires understanding both the original financing and the new capital stack needed to extend affordability.
Join us tomorrow for letter Q! Don’t forget to like, share, and tag a colleague working on preservation deals.
