Govts tasked on affordable housing fund

Governments at all levels have been urged to establish an Affordable Housing Fund to provide grants, interest free or low-interest loans, tax credits and other financial incentives to support affordable housing projects.

According to the housing expert, Miabaka Adoki, on the social media platform of Housing Development Advocacy Network (HDAN), the money can come inform of government subsidies and funding in the tune of N1 trillion, where nonprofit organisations and developers can apply for  funds through various housing and community development programmes.

This channel, he said was one of the common ways used to raise money for affordable housing initiatives.

“The best medium to raise money for executing affordable housing projects can depend on various factors such as the scale of the project, the level of community involvement, and the local regulatory environment,” he said, listing some common mediums used to raise money for affordable housing initiatives.

He also mentioned Low-Income Housing Tax Credits as one of the common ways to raise fund for affordable housing initiative.

Explaining, he said: “The Low-Income Housing Tax Credit (LIHTC) programme provides tax incentives to encourage private investment in affordable housing.

“Developers can partner with investors who can claim tax credits in exchange for providing financing for affordable housing developments.”

Adoki also listed Private Financing and Investment as another option. He explained that working with private investors, banks, and financial institutions could provide capital for affordable housing projects.

According to him, this could include impact investing and social impact bonds, urging that 10 percent profit of banks should go into affordable housing.