05/31/2026
Affordability restrictions across the country are beginning to expire and when they do, properties originally built to serve working families, seniors, and lower-income residents are at risk of converting back to market rate.
For owners, that moment raises difficult questions: reposition the asset, refinance, manage rising operating costs, or navigate growing community and political pressure. For municipalities already stretched thin, losing existing affordable supply means trying to replace it later at a far greater cost.
is central to how Avanath invests. By partnering with cities and housing agencies to extend affordability commitments, we work to keep properties rent-regulated and accessible to the residents who need them most, while creating the kind of portfolio stability that performs through market cycles.
Affordable communities tend to maintain stronger occupancy, lower turnover, and more consistent cash flow than market-rate properties, even during economic downturns.
Paired with tools like tax abatements, LIHTC credits, and , preservation can unlock long-term financing advantages that strengthen both community outcomes and long-term asset performance.
Dive deeper into our preservation strategy in IREI’s 2025 interview with Ken McMackin, executive vice president of investments at Avanath: https://irei.com/news/avanath-capital-managements-ken-mcmackin-on-affordability-preservation-and-conversion-as-an-investment-strategy/
