Innovative Financing
Deep affordability requires deep creativity. Here's how we make it possible.
Creating homes affordable to families earning 30% or less of the Area Median Income doesn't happen by accident. It requires layering multiple sources of capital, navigating complex regulatory programs, and structuring deals that private developers won't — or can't — attempt. Jubilee Housing has spent decades building this expertise, and it is now a defining part of what makes Justice Housing® possible in Washington, DC.
Our Financing Toolkit
Low-Income Housing Tax Credits (LIHTC)
The federal Low-Income Housing Tax Credit program is the cornerstone of most affordable housing development in the United States. Jubilee Housing uses LIHTC — both the competitive 9% credits and the more accessible 4% credits paired with tax-exempt bonds — to attract private equity investment into our developments. In DC, nonprofits with 51% general partner interest and material participation can also access a 100% property tax exemption, significantly improving project feasibility.
We work with mission-aligned syndicators and investors who understand that affordability and quality are not in tension — they are the same goal.
DC Housing Production Trust Fund (HPTF)
The DC Housing Production Trust Fund is the District's primary local subsidy tool for creating and preserving affordable housing. Jubilee Housing regularly applies for HPTF gap financing to bridge the difference between what a project costs and what can be supported by rent revenue from deeply affordable households. At least 50% of HPTF spending is directed toward households at or below 30% AMI — the population Jubilee is uniquely committed to serving.
DC Housing Finance Agency (DCHFA) Bonds
Tax-exempt bond financing through the DC Housing Finance Agency provides a cost-effective source of debt for Jubilee Housing's larger developments. DCHFA bonds are often paired with 4% LIHTC to create a powerful combination of low-cost debt and private equity — reducing the overall subsidy needed and allowing us to stretch every dollar further.
Tenant Opportunity to Purchase Act (TOPA)
DC's Tenant Opportunity to Purchase Act has been a cornerstone of the city's housing policy since 1980. When a rental building goes up for sale, TOPA gives tenants the first right to purchase their building — or to assign that right to a developer of their choice. Jubilee Housing has used TOPA as a critical acquisition tool to preserve existing affordable housing, working with tenant associations to convert threatened buildings into long-term Justice Housing. This approach keeps existing residents housed and eliminates the displacement that too often accompanies market-rate redevelopment.
Community Development Financial Institutions (CDFIs)
CDFIs are mission-driven lenders that fill the gaps left by conventional banks and government programs. Jubilee Housing works with leading CDFIs — including national leaders like NeighborWorks Capital and local DC-focused institutions — to access pre-development loans, acquisition financing, construction loan guarantees, and bridge financing. CDFI capital is flexible, patient, and mission-aligned, making it an essential partner in our development work.
Philanthropic Capital and Impact Investment
Not every financing gap can be filled with government programs and tax credits. Philanthropic grants and program-related investments (PRIs) from foundations and individual donors play a critical role in making our most deeply affordable projects possible. Jubilee Housing also explores impact investment structures that allow mission-aligned investors to earn a modest return while directly funding Justice Housing.
Local Rent Supplement Program (LRSP)
DC's Local Rent Supplement Program provides operating subsidies that allow Jubilee Housing to serve households with the lowest incomes — those who could not afford even deeply affordable rents without further assistance. LRSP vouchers bridge the gap between what residents can pay and what it costs to operate quality housing, and they are essential to our work with formerly homeless individuals, people returning from incarceration, and seniors on fixed incomes.
New Markets Tax Credits (NMTC)
For projects with community facility components — like resident service spaces, childcare facilities, or health clinics — New Markets Tax Credits can provide an additional layer of equity financing. Jubilee Housing explores NMTC opportunities where a development includes meaningful community-serving uses beyond housing alone.
Why This Complexity Is Worth It
Layering eight or more financing sources into a single development is slow, complex, and demanding. It requires specialized legal, accounting, and development expertise. It demands long-term relationships with funders, lenders, and regulators. And it requires an organizational commitment to absorbing risk that many developers are unwilling to take on.
Jubilee Housing does this work because the people who need deeply affordable housing in Washington, DC cannot wait for an easier solution. Every deal we close is a family housed, a life stabilized, a community strengthened. That's the return on investment that matters most.
Explore Partnership Opportunities
Are you a lender, foundation, investor, or public agency interested in partnering with Jubilee Housing on innovative financing for Justice Housing? We welcome conversations about how together, we can make a greater impact in DC's most underserved communities.