I run a financial advisory consulting firm called Lighten-Gale Group that represents developers interested in creating affordable rental housing developments. Several of our clients are public housing authorities or their affiliates that have expanded the housing options in their communities. These projects were financed without any public housing resources and instead relied on private funding, low-interest state loans and grants, and allocations of Low Income Housing Tax CreditsPublic housing authorities (PHAs) were created and are funded by the Department of Housing and Urban Development (HUD) and typically have two main functions: (1) to own and operate low-cost housing that is accessible to very low income households and (2) to allocate rental vouchers to very low income households to help pay for privately-owned rental housing. In the past, we have worked with several PHAs that wanted to expand the housing options in their communities, as well as diversify and increase their revenues. Below are two of our success stories: Housing Authority of Christian County (HACC), Illinois HACC and its 501(c)(3) subsidiary, Christian County Integrated Community Services (CCICS), have completed five developments in the past several years. Each development created between 20-25 new units and, in total, added 101 units throughout the county. These projects were financed without any public housing resources and instead relied on private funding, low-interest state loans and grants, and allocations of Low Income Housing Tax Credits (LIHTCs). HACC and CCICS have been successful in both expanding housing options in the communities they serve, as well as generating new sources of revenuesIn each deal, HACC/CCICS partnered with a local turnkey developer/general contractor who paid for the bulk of pre-development expenses and provided some of the syndicator required guarantees. For the first four projects, they built in-fill single family homes that will be rental properties for the first 15 years, but will then have the option to convert into affordable homeownership units. Their last project was a 24-unit townhome development that will remain a rental property for at least 30 years. HACC was uniquely equipped to complete these projects as a result of the following factors:

• Good understanding of local market housing needs
• Quality property management that can expand to serve new projects
• Access to project-based rental assistance which allows the project to compete for scarce funding and increase its marketability

These developments include units with project-based rental assistance, but the bulk of them have fixed rents and serve residents earning between $10,000 to $35,000 annually. Unlike the public housing units, CCICS is able to use all of the cash flow generated by these projects after they have paid operating expenses and serviced their debt. They may also benefit financially when the rental units convert into home ownership properties. In addition, CCICS earns modest development fees for their work on these types of projects. HACC and CCICS have been successful in both expanding housing options in the communities they serve, as well as generating new sources of revenues to serve their joint affordable housing mission. Montgomery County Housing Authority (MCHA) The MCHA is leveraging both public and state The Capital Funds Finance Program is a great resource for PHAs that want to replace or refurbish existing public housing unitsresources to replace existing public housing through a project scheduled to close this summer. Golden Oaks Apartments will house 32 new senior units in two towns located in Montgomery County, Illinois. The housing development will include a combination of public housing and Project-Based Section 8 units that will serve very low income residents. MCHA is using the Capital Funds Finance Program (CFFP) to pay for a portion of the development costs. The CFFP allows MCHA to use future HUD-promised capital funds to borrow funds today. The CFFP is a great resource for PHAs that want to replace or refurbish existing public housing units. The balance of this rental project is paid for with 2009 stimulus funds and low-interest state loans.