Transcript of a brief discussion (two speakers) about an affordable housing strategy where purchasers acquire residential properties and intentionally lower rents rather than renovate and raise them. The speakers describe this as lower-risk, targeting lower-income households, and gaining benefits such as long-term property tax exemptions and improved net income via reduced expenses rather than higher revenue.
Affordable housing strategy where we were preserving affordable housing by actually not renovating the apartments, but actually not doing anything to them necessarily fancy to raise rents, but actually to lower rents and stabilize the asset.
So say that again. You actually buying property. I know this, but I want, I want the audience to hear buying properties and actually lowering rents.
Yeah, no, it's amazing strategy because it's lower risk and it's logical. Right? Because if you're lowering rents, you're not taking a risk as far as will the market accept these rents? And so on. So we're catering lower income households and therefore restricting the rents. In exchange, we get long term property tax exemptions. So we're able to kind of do a type deal where we're able to get a pop in our income. But that pop in income doesn't come through increasing revenue. It actually comes through decreasing expenses.
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