In this episode of the Midwest Multifamily Exchange, we explore the intricacies of HAP (Housing Assistance Payments) and LIHTC (Low-Income Housing Tax Credits) with insights from seasoned real estate mentor Kevin Morse. Join us as we break down the differences between HAP and LIHTC, discuss their impact on affordable housing, and uncover strategies for leveraging these programs to grow your multifamily portfolio. Whether you're a newcomer or a seasoned investor, this episode offers valuable knowledge on navigating these complex but rewarding sectors of real estate.

• [0:00] - Introduction to HAP and LIHTC: Overview of the episode's focus on Housing Assistance Payments and Low-Income Housing Tax Credits.
• [2:20] - What is HAP?: Explanation of the Housing Assistance Payments program and its association with HUD and Section 8.
• [4:00] - Differences between HAP and LIHTC: Distinction between asset-based Section 8 (HAP) and Section 42 (LIHTC) tax credits.
• [8:10] - Decline of HAP Contracts: Discussion on why new HAP contracts are no longer issued and the transition towards LIHTC.
• [11:50] - Acquiring HAP Properties: Steps and considerations in purchasing properties with existing HAP contracts.
• [14:30] - Compliance and Management: Overview of compliance requirements and management of HAP properties, including income verification and physical inspections.
• [18:00] - Benefits of HAP Properties: Why investors might prefer HAP properties, including recession-proof aspects and stable rent payments.
• [21:40] - Layering LIHTC with HAP: How to enhance the value of HAP properties by applying for LIHTC to fund renovations and improvements.
• [24:10] - Risks and Challenges: Potential downsides of HAP, including the impact of inflationary rent increases on tenant affordability.
• [27:50] - Future of HAP and LIHTC: Kevin's perspective on the future trends in affordable housing programs and his personal investment preferences.

• Midwest Multifamily Exchange: https://midwestmultifamilyexchange.com
• Robert Hall & Associates: https://roberthalltaxes.com

Thank you for tuning into the Midwest Multifamily Exchange. We hope this episode provided you with valuable insights into HAP and LIHTC. If you enjoyed the episode, please subscribe, review, and share it with others. For more resources and to connect with our community, visit MidwestMultifamilyExchange.com. Happy investing!

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