Strategies to Preserve Small Subsidized Affordable Housing Properties

Across the United States, despite efforts to build more affordable rental housing, millions of
households lack access to safe, stable and secure housing due in part to the lack of preservation of existing homes. While large - scale affordable housing developments often dominate policy conversations, small subsidized multifamily affordable housing properties - those with 2 to 25 units ( known here as “small properties”) - play a critical yet underappreciated role in the affordable housing ecosystem.

These small properties are often deeply affordable, integrated within neighborhoods, and serve as a lifeline for low-income households. Many of these properties are financed through federal affordable housing subsidy programs like the Low Income Housing Tax Credit (Housing Credit)and the HOME Investment Partnerships Program (HOME), often layered with state or local subsidies. However, preserving these small properties is becoming increasingly difficult. As affordability restrictions expire and operating challenges mount, there is a real danger of losing a substantial portion of this essential housing stock.

Key Strategies for Preservation
1. Targeted Financial Products
2. Right of First Refusal or Notification Laws
3. Tax Incentives