ABSTRACT
This chapter discusses the risks in general terms and presents some quantitative techniques which may enable the investor to assess the magnitude of the risks and rewards in a particular offering. The impact of cost increases on subsidized units consequently was the same as the impact of increasing costs on market rate units whose tenants could not afford to pay higher rents. Housing syndications are structured to take maximum advantage of tax benefits. Among real estate investments, assisted housing can produce the greatest tax benefits. Investors in housing limited partnerships have a substantial contingent liability. The various exemptions from registration place considerable restrictions on the offerings. The risks which result from high leverage and uncertain developer incentives are increased by public regulation of assisted housing. Since regulatory agencies are political institutions, they may create economic problems for specific Section 8 projects. Location decisions may be influenced by political considerations, as well as by an assessment of desirable tenants.
