Beyond LIHTC: Emerging Models Expanding the Affordable Housing Toolkit
For nearly 40 years, the Low-Income Housing Tax Credit (LIHTC) has been the cornerstone of affordable housing development in the United States. Since its creation in 1986, it has helped finance more than 3.8 million affordable homes and remains the single most important production tool available to nonprofit and mission-driven developers.
But today’s housing crisis is different than the one LIHTC was designed to address.
Communities across the country face unprecedented land costs, construction inflation and labor shortages. Insurance premiums are rising and, in some communities, particularly in California, insurance can be extremely difficult to secure. Meanwhile, the demand for affordable homes continues to rise. The clients we work with are successful developers with strong track records. Still, they are finding themselves competing for limited tax credit allocations while attempting to stretch increasingly complex capital stacks.
The question facing the industry isn’t whether LIHTC still works. Nearly every nonprofit developer, housing authority, lender, and investor would agree it does. The question we’re seeing asked is whether LIHTC alone can meet today’s housing needs. Increasingly, researchers, policymakers, and developers agree that the answer to that question is no.
Work from the Terner Center for Housing Innovation, the Urban Institute, and California’s Social Housing Study (SB 555) points toward a future in which affordable housing is financed through a broader mix of tools. For affordable housing leaders, these emerging models are worth watching. Not because they’ll replace traditional development, but because they’ll likely become part of tomorrow’s financing toolkit.
Social Housing: Building Permanently Affordable Communities
Perhaps no concept has generated more discussion over the past few years than social housing. Unlike traditional public housing, modern social housing generally refers to permanently affordable, publicly owned housing that serves a mix of income levels. Rather than relying exclusively on deep operating subsidies, moderate-income residents help support the financial sustainability of the community while residents at all income levels gain the stability that long-term affordability provides.
Modeled in part after Vienna’s social housing program, arguably the highest-profile example in the United States is the Seattle Social Housing Developer (SSHD). Created after Seattle voters approved Initiative 135, the Public Development Authority is pioneering a new model of mixed-income, permanently affordable housing governed in part by residents. Reneris had the privilege of partnering with the organization early on, placing the first Chief Operating Officer and Chief Financial Officer at SSHD.
In 2025, SSHD moved from concept to implementation with its first acquisition, Elara at the Market, a 150-unit apartment community located across the street from Seattle’s beloved Pike’s Place Market. The significance of the organization’s work certainly extends beyond one city. Housing leaders nationwide are watching closely to understand how the governance, financing, and long-term stewardship of social housing might evolve alongside existing affordable housing programs.
Community Land Trusts: Preserving Affordability for Generations
One of the greatest challenges facing affordable housing is preserving affordability long after initial financing expires. Community Land Trusts (CLTs) approach that problem differently.
Instead of selling both the land and the home, a nonprofit retains ownership of the land through a long-term ground lease while residents own or lease the improvements. Resale restrictions ensure homes remain affordable for future generations rather than appreciating beyond the reach of moderate-income buyers, addressing increasing concerns many communities have around displacement.
In the Pacific Northwest, Proud Ground in Portland has become one of the nation’s leading examples of this model. Since its founding, the organization has helped hundreds of families achieve homeownership while protecting affordability in neighborhoods experiencing significant price appreciation.
Innovation in the Capital Stack
Organizations like BRIDGE Housing, headquartered in California, routinely assemble highly sophisticated financing structures that combine LIHTC with local housing trust funds, tax-exempt bonds, philanthropic investment, state programs, and public-private partnerships.
At the end of last year, they announced the launch of BRIDGE Housing Impact Fund I, a private equity fund aimed at enabling $1 billion in investment into acquiring, preserving, and creating affordable housing in California, Oregon, and Washington. Following this announcement, Reneris partnered with BRIDGE Housing to lead the search for the newly created position, Senior Director of Finance and Treasury. BRIDGE Housing announced the first close of the fund this spring, securing more than $92 million toward its ultimate $350 million equity target.
What this means for leadership
As financing models diversify, so do the leadership competencies organizations need. Developers are increasingly seeking executives who can navigate complex capital stacks, cultivate public-private partnerships, engage communities, and lead across sectors. While LIHTC expertise remains foundational, tomorrow’s housing leaders will also need fluency in emerging policy tools, innovative financing, and collaborative governance. At Reneris, we’re privileged to partner with organizations building the future of housing by helping them identify leaders equipped for what’s next.