This article originally appeared in the National Housing & Rehabilitation Association’s Tax Credit Advisor magazine
With the real estate sector experiencing rapid technological advancements, the low-income housing tax credit (LIHTC) industry is also beginning to embrace these innovations to streamline development, management, and compliance processes.
While any technological innovation presents new risks, the following explores the transformative impact of new technology on the industry and its potential to revolutionize the affordable housing landscape.
There is still a ways to go before these technologies reach their full potential in the LIHTC industry, as adoption is still picking up steam and best practices are still being developed. These innovations also introduce new risk management responsibilities, such as implementing strong protections and policies around cybersecurity and data privacy.
But ultimately, the integration of new technology into the LIHTC industry can transform affordable housing development, management, and compliance. The use of these tools helps streamline processes and optimize resource allocation, leading to more efficient and sustainable LIHTC projects. As the real estate sector continues to evolve, the LIHTC industry is poised to become more innovative and impactful in addressing the affordable housing needs of millions of Americans.
For more on technology and data trends shaping the real estate sector, catch our recent article, “Real estate operating models: 5 keys to efficiency and value” – part of our Embrace the Movement series.
Matthew Barcello, Senior Manager, Tax Credit Investment Services, Project Finance & Consulting
Affordable Housing News & Views