Navigating the Complexities of Affordable Housing: Insights from Douglas Kohn, MBA, CPA
- SoFla Prime
- May 6
- 3 min read
In 2025, affordable housing continues to sit at the intersection of public necessity and financial complexity. Programs like LIHTC, Section 8, and RAD are vital lifelines for millions of families across the U.S.—but they’re also caught in the crosshairs of federal budget constraints, state-level housing policy shifts, and local regulatory friction.
At SoFla Prime Consulting, we specialize in helping developers, managers, and investors cut through the noise. Led by Douglas Kohn, MBA, CPA, our firm brings deep expertise in affordable housing finance, compliance, and asset management across thousands of units and dozens of jurisdictions.
A Perfect Storm of Pressure: The 2025 Affordable Housing Landscape
1. Federal Budget Cuts and Funding Uncertainty
With persistent debates in Congress over deficit reduction, many affordable housing programs are facing delayed appropriations and potential funding reductions. Key programs at risk include:
Section 8 Project-Based and Tenant-Based Assistance
HOME Investment Partnerships Program
CDBG (Community Development Block Grants)
Public Housing Capital Funds
These delays have a cascading effect—slowing down project timelines, disrupting HAP payments, and undermining investor confidence in long-term LIHTC deals.
Douglas Kohn notes: "We've seen developers forced to rework pro formas midstream due to shifting assumptions about federal allocations. Strong financial modeling and contingency planning are more important than ever."
2. State and Local Regulatory Bottlenecks
Even as some states expand incentives for affordable housing, local jurisdictions often present new hurdles. These include:
Permitting delays and zoning battles
Stringent environmental or design requirements
Conflicts between state preemption laws and local ordinances
Inconsistent compliance interpretations across agencies
Douglas and the SoFla Prime team have worked with clients to proactively engage with housing finance agencies, municipal zoning boards, and compliance auditors to mitigate surprises and keep deals moving.
3. Rising Operating Costs and Insurance Pressures
Affordable housing operators are grappling with:
Spiking property insurance premiums, especially in coastal states like Florida
Increased maintenance costs for aging HUD and LIHTC portfolios
Staffing shortages at both the property and corporate levels
These pressures can erode cash flow and trigger investor scrutiny. SoFla Prime helps clients develop sustainable budgets, leverage real-time financial systems like Yardi and MRI, and model reserve strategies that ensure long-term viability.
4. Compliance Complexity Across Multiple Funding Sources
Today’s affordable housing deals are rarely single-source. Most involve multi-layered capital stacks, combining:
LIHTC equity
Tax-exempt bond financing (often 4% credit deals)
Deferred developer fees
State and local gap financing
HUD or USDA loan programs
Section 8 or RAD rental subsidies
Each funding source brings its own compliance calendar, audit requirements, and reporting burden. That’s where SoFla Prime excels—creating streamlined accounting workflows that reconcile these obligations with precision.
Why SoFla Prime Consulting?
With a practice built around financial transparency, regulatory expertise, and hands-on client support, SoFla Prime Consulting delivers the accounting clarity and strategic foresight the affordable housing sector urgently needs.
Douglas Kohn, MBA, CPA, brings:
Experience managing financial systems for 5,000+ units
A track record advising on LIHTC Year 15 transitions
Expertise in HUD audits, compliance reviews, and RAD conversions
Knowledge of platforms like Yardi, AppFolio, MRI, Buildium, and more
Whether you’re pursuing a new 9% LIHTC deal, managing an older Section 8 portfolio, or trying to secure soft funding from a state agency, SoFla Prime helps you stay compliant, confident, and prepared.
Contact Us
Is your affordable housing project facing financial hurdles, compliance challenges, or shifting funding assumptions? Let’s talk.
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