Impact of the Consortia
Overall Affordable Markets
Consortia ultimately serve the affordable housing markets in their respective
states. Consortia are driven by both their return to investors and their
ultimate mission to serve their markets. They serve as a bridge between
the public and private sectors, and provide their states with a consistent,
reliable and local source of permanent debt financing. Since community development
lending is the only business of the consortia, they provide continuity through
cycles, supporting the affordable rental housing market in ways and times
that financial institutions directly might not be able to.
The consortia’s reputation and success in
securing performing loans for the portfolio have made them an important
voice in affordable housing
program design at the state and national level. Consortia are routinely
called upon to provide financial expertise to policy makers at the state
and local levels. Their work involves an enormous commitment of time
sitting on committees and preparing testimony and information to guide
and has helped secure program funding, preserve threatened programs,
and improve affordable housing statutes
Consortia speak for the industry in their policy
role. They provide a “non
political” focal point which allows them to represent both the development
community viewpoint and the investor community desires and guidelines.
The consortia provide educational opportunities to all banks in the state
serve on major task forces. The entire financial community and affordable
housing industry benefit from this intensive involvement.
Consortia provide extensive consulting service to their customers, logging
many unreimbursed hours to assist developers in structuring deals and securing
government subsidies. This also helps developers to be better prepared when
seeking construction financing from member banks. Another part of the mission
of consortia is to provide technical assistance to borrowers and communities.
This requires significant time commitments, but helps projects to be successful
and often helps build the capacity of development entities in underserved
areas, thereby providing an expanded customer base for the banks.