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Last updated on Feb 19, 2023
7 min read
by Content Team

Who are the Top Affordable Housing Developers in the United States?

Each year, thousands of affordable housing units are developed across the United States. If you’re considering investing in affordable housing, or even developing affordable housing yourself, it’s essential to understand the market landscape. Fortunately, this April, Affordable Housing Finance issued a list of the Top 50 affordable housing developers of 2018. We’ve taken the top 10 and provided some additional color, so you can get a better understanding of today’s biggest players in the affordable housing industry.

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In this article:
  1. The Top 10 Affordable Housing Developers in The U.S.
  2. The Pacific Companies
  3. LDG Development
  4. Dominum
  5. Rise Residential Construction
  6. The NRP Group
  7. McCormack Baron Salazar
  8. Commonwealth Development Corporation of America
  9. The Michaels Organization
  10. Herman & Kittle Properties
  11. Dantes Partners
  12. Top Multifamily Housing Developers vs. Top Affordable Housing Developers
  13. Related Questions
  14. Get Financing

The Top 10 Affordable Housing Developers in The U.S.

Check out our 2022 ranking of the top affordable housing developers in the U.S.

Each year, thousands of affordable housing units are developed across the United States. If you’re considering investing in affordable housing, or even developing affordable housing yourself, it’s essential to understand the market landscape. Fortunately, this April, Affordable Housing Finance issued a list of the Top 50 affordable housing developers of 2018. We’ve taken the top 10 and provided some additional color, so you can get a better understanding of today’s biggest players in the affordable housing industry.

The Pacific Companies

Company Profile: Headquartered in Eagle, Idaho, The Pacific Companies focuses on developing apartment communities, workforce housing, senior residences, and charter schools. Since 1998, the company has developed more than 150 projects with a combined asset value of approximately $2 billion. The company mostly focuses is on projects in the western United States, with a special focus on California. Unlike some development firms, The Pacific Companies is vertically integrated, and has under its umbrella a construction management/general contracting firm, an architecture firm, and a real estate financing company. In addition to its core competencies, the company has recently increased its efforts involving public-private partnerships, urban infill projects, and inclusionary housing.

Website: https://www.tpchousing.com/

2018 Unit Starts/Completions: 2,501/1,315

Leadership: Caleb Roope, President and CEO

LDG Development

Company Profile: In 2018, LDG clocked in as the nation’s second largest developer of affordable properties, with more than 2,200 units started and more than 1,400 completed. The company’s main focus is developing affordable housing communities in the southern U.S., with a major focus on Texas, Kentucky, and Louisiana. LDG prides itself on working with local communities to increase housing opportunities for everyday Americans, while attempting to dispel harmful myths about affordable housing.

Website: https://www.ldgdevelopment.com/

2018 Unit Starts/Completions: 2,274/1,424

Leadership: Mark Lechner and Chris Dischinger, Principals

Dominum

Company Profile: Dominum, located in Plymouth, Minnesota, is the nation’s third-largest developer of affordable housing-- but it has an ambitious plan to reach number one. Unlike some firms, Dominum likes to keep an ownership stake in the properties it develops, and likes to manage them, as well. By 2025, the firm plans to own and operate 40,000 affordable housing units across the U.S. Currently, the company manages 30,000 apartments in 22 states and owns $3 billion in multifamily properties. So, while it hasn’t quite reached its goal, it seems to be well on its way.

Website: https://www.dominiumapartments.com/

2018 Unit Starts/Completions: 2,113 / 948

Leadership: Paul Sween, Managing Partner, and Mark Moorhouse, Senior Vice President and Partner

Rise Residential Construction

Company Profile: Rise Residential Construction, based in Dallas, builds, develops, and manages a wide portfolio of apartment complexes, mostly based in its home state of Texas. In addition to traditional apartment complexes, the firm also develops independent living communities for senior citizens. Right now, the company has 12 construction projects in progress, including several projects intended to increase the housing supply in disaster areas impacted by Hurricane Harvey.

Website: https://rise-residential.com/

2018 Unit Starts/Completions: 1,552/564

Leadership: Melissa Fisher, President

The NRP Group

Company Profile: As the fifth largest affordable housing developer in the U.S., The NRP Group completed nearly 1,100 properties in 2018 alone. Like The Pacific Companies, The NRP Group is highly vertically integrated, creating its own projects, building them, and managing them. The company’s affiliates also offer real estate investment services, including equity raises and tax-exempt bond financing. The company, which is headquartered in Cleveland, Ohio, works on projects throughout the country, and is currently focused on expanding into the Southeast.

Website: https://www.nrpgroup.com/

2018 Unit Starts/Completions: 1,087/1,918

Leadership: J. David Heller, CEO

McCormack Baron Salazar

Company Profile: Headquartered in St. Louis, Missouri, McCormack Baron Salazar focuses its development efforts on creating sustainable, economically-integrated urban communities. With more than 45 years of development under its belt, the firm has completed projects in 47 cities and has built more than 22,000 homes. Like several other developers on this list, McCormack Baron Salazar manages many of the properties it develops. In addition to its focus on residential development, the company also makes commercial investments utilizing the New Markets Tax Credit (NMTC) program, which provides a tax credit for investors that place funds in eligible projects located in low-income communities.

Website: https://www.mccormackbaron.com/

2018 Unit Starts/Completions: 1,032/677

Leadership: Vince R. Bennett, President

Commonwealth Development Corporation of America

Company Profile: Commonwealth Development Corporation of America, located in Fon du Lac, Wisconsin, develops, builds, and manages both market-rate and affordable properties across the country, with an emphasis on projects in Wisconsin, Colorado, and Texas. The company has a specific focus on adaptive reuse, and prides itself on its ability to convert historically significant buildings into multifamily housing. The firm also focuses on buying out current multifamily owners who may not have the funds to complete necessary property rehabilitation efforts.

Website: https://www.commonwealthco.net/

2018 Unit Starts/Completions: 1,011/892

Leadership: Louie A. Lange III, Founder

The Michaels Organization

Company Profile: Based in Marlton, NJ, The Michaels Organization has more than 40 years of expertise in housing development, and has worked with municipalities, public universities, and faith-based organizations in order to create customized housing solutions. Recent projects range from student housing in California, to affordable developments in Washington D.C. and single-family rental communities for active-duty military service members and their families. Over the last four decades, The Michaels Organization has developed approximately 400 communities with nearly 150,000 residents. Today, the firm currently manages 53,000 units, and is the largest privately-held owner of affordable housing in the United States.

Website: https://tmo.com/

2018 Unit Starts/Completions: 963/546

Leadership: John J. O'Donnell, CEO

Herman & Kittle Properties

Company Profile: Herman & Kittle Properties, which began as Herman Associates, Inc. in 1948, has more than 70 years of experience in real estate development. In 2002, the company was rebranded as Herman & Kittle Properties. Today, the company focuses on vertically-integrated housing solutions, specializing in areas including building design,  construction, development, property acquisitions, financing, property management, and marketing. Currently, the firm boasts a diverse portfolio of over 15,000 apartment units in 18 states, including Indiana, Texas, Ohio, Michigan, Illinois, and Tennessee.

Website: https://www.hermankittle.com/

2018 Unit Starts/Completions: 946/689

Leadership: Jeffrey Kittle, President and CEO

Dantes Partners

Company Profile: Dantes Partners, based in Washington D.C., focuses on partnering with local communities to create affordable housing in the areas that need it most. Specialties include complex tax credit and tax exempt bond transactions, including deals utilizing the Low-Income Housing Tax Credit Program (LIHTC). In addition to low-income housing, Dantes Partners focuses on workforce housing for middle-income Americans and housing solutions for senior citizens. While most of the company’s projects are located in Washington D.C., the firm has recently began expanding into the NYC market.

Website: https://www.dantespartners.com/

2018 Unit Starts/Completions: 929/0

Leadership: Buwa Binitie, Managing Principal

Top Multifamily Housing Developers vs. Top Affordable Housing Developers

Despite the country’s growing need for affordable housing, most of the top multifamily housing developers in the United States are not significantly invested into the affordable housing market. When comparing the list of top multifamily developers to the list of top affordable housing developers, only a few names appear on both lists. The Michaels Organization, which ranked #8 on the list of largest affordable housing developers, ranked #10 on the overall list of largest developers in the U.S. And, LDG Development, which ranked #2 on the top affordable housing developers list, was ranked at #23 on the list of largest developers in the country. This is likely due to the fact that there is simply a much larger market for market-rate developments than affordable developments, as well as the fact that affordable housing developers are often required to have an somewhat different skill set than market-rate developers.

Related Questions

What are the best affordable housing development programs in the US?

The best affordable housing development programs in the US vary depending on the state and the specific needs of the community. The US Department of Housing and Urban Development (HUD) provides funding for affordable housing development programs through the Community Development Block Grant (CDBG) program. This program provides grants to states and local governments to help fund the development of affordable housing. Additionally, the Low-Income Housing Tax Credit (LIHTC) program provides tax credits to developers who build and maintain affordable housing units. The US Department of Agriculture (USDA) also provides funding for rural housing development through the Rural Housing Service (RHS) program. This program provides loans and grants to help fund the development of affordable housing in rural areas.

For more information on affordable housing development programs, you can visit the HUD website or the USDA website.

What are the most successful affordable housing projects in the US?

The most successful affordable housing projects in the US vary depending on the criteria used to measure success. According to the Top 50 Affordable Housing Developers of 2018 list, the most successful affordable housing projects in the US are those developed by the top 10 developers on the list. These developers include The Michaels Organization, LDG Development, The NRP Group, The Community Builders, Inc., The Related Companies, BRIDGE Housing Corporation, The Habitat Company, McCormack Baron Salazar, Inc., The Hanover Company, and The John Stewart Company. These developers have developed some of the most successful affordable housing projects in the US, such as the Harrison in Chicago, the Canyon View in San Diego, and the Canyon View in San Diego.

What are the most innovative affordable housing developments in the US?

The most innovative affordable housing developments in the US vary depending on the region and the needs of the local community. For example, in California, the Sunnyvale Block 15 project is a four-story building with 90 units that are restricted to renters earning between 30% and 80% of AMI, and one-quarter of the units are reserved for those with learning and developmental disabilities. In New York City, the New York City Housing Authority is developing a new affordable housing project in the Bronx that will include a mix of affordable and market-rate units, as well as a community center and a public park. In Chicago, the South Loop Affordable Housing Project is a mixed-income development that will include a mix of affordable and market-rate units, as well as retail and community space.

What are the best financing options for affordable housing developers?

The best financing options for affordable housing developers are government-backed loan programs, such as those offered by the Department of Housing and Urban Development (HUD). HUD loans offer some of the most advantageous financing terms out there, including 35-year fixed rate terms, full amortization, and leverage up to 83.3% for market-rate apartment buildings or 87% for rental assistance properties. Additionally, HUD loans have few restrictions on borrower experience, and their liquidity and net worth borrower requirements are far more flexible compared to even agency loans. The biggest downside with a HUD loan is that it takes more time to get the financing, but for many, it’s well worth the wait.

Conventional loans from banks, credit unions, and other private lenders are another loan option to consider when financing affordable housing properties. However, it is important to keep in mind that because they are not insured by government-backed entities, conventional loans generally have higher interest rates, shorter amortization periods, and more rigid credit score requirements. Nonetheless, conventional loans can close faster, and can offer more flexible loan terms.

For more information, please visit https://www.multifamily.loans/hud-multifamily-loans and /multifamily-bank-loans.

What are the most successful strategies for affordable housing developers?

The most successful strategies for affordable housing developers include taking advantage of lower-cost financing options insured by HUD, such as the HUD 223(f) loan, and utilizing an array of tax credit options, including the Low-Income Housing Tax Credit program. Both of these options can offer borrowers significantly higher leverage and lower-interest loans, making them attractive options for affordable housing developers.

For more information, please see the following sources:

What are the most important considerations for affordable housing developers?

The most important considerations for affordable housing developers are the potential profit potential, the availability of lower-cost loan options, and the amenities that can be offered to renters.

Affordable housing has the potential for higher margins than luxury assets, and investors in this space can take advantage of significantly lower-cost loan options like HUD 223(f) to finance an acquisition.

It is also important to consider the amenities that can be offered to renters. This includes things like outdoor space, community gardens, bike racks, and other features that can make a difference at the property. Knowing the renter base and surrounding community is key to tailoring the property to the needs of the renters.

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