Many affordable housing developers, owners, and operators see their role going well beyond the creation and preservation of safe and stable quality housing. They also understand the duty they have in enhancing the well-being of the families and individuals they serve through resident services.

Desiree Francis is a leading supporter of resident services in affordable housing development. In her position as managing vice president of community finance for Capital One, she leads a mission-focused team responsible for originating $2.3 billion in debt and low-income housing tax credit (LIHTC) equity investments, supporting the financing of more than 14,000 affordable housing units in 2023. Francis recently shared her views on resident services.

How do you define resident services in the context of affordable housing?

Resident services include amenities and programs that support resident well-being and are tailored to meet their needs. They can include services that deliver digital access, mental and physical health services, financial education, afterschool education, and career training.

How should developers understand the value-added of resident services?

Resident services can provide a double bottom-line impact to property owners by contributing to greater housing stability, improving property operations, and reducing costs associated with marketing and unit turnover.

Offering resident services such as positive rent reporting can also incentivize on-time rent payments. According to a 2023 TransUnion survey, 82% of all renters said they would be more likely to pay rent on time if their payments were reported.

Are resident services a growing priority for affordable housing developers?

Yes, for some developers, resident services are a top priority because they align with the developer’s overall mission, business, or development strategy. For others, it's top of mind because some state qualified allocation plans either require or give additional points for resident services. Other developers may not be as familiar with the value of resident services or may consider them to be purely philanthropic.

Across the industry, we are seeing more affordable housing providers and industry participants focus on a property’s impact beyond the number of units created. For example, Arlington Partnership for Affordable Housing (APAH) has launched college savings accounts for the 5-year-old children living in APAH properties, and they host a library truck to encourage literacy among the children. With Capital One funding, APAH is also piloting an individual development account program with a 5-to-1 match, which encourages residents to save toward a personal goal such as homeownership, education, or starting a small business.

Because of the increased focus on impact, organizations like the Multifamily Impact Council have developed a framework to standardize impact-related definitions and measurements, which can help drive transparency into the social impact of current and future multifamily housing developments.

How critical is the resident services coordinator or manager?

A resident services coordinator is vital to the success of a property and its residents. Property owners who have resident services coordinators on staff report better outcomes, according to a report from the Urban Institute.

Given their role in helping to build trust and relationships with residents, resident services coordinators should take the lead in determining resident services components. They can make a recommendation around the resident services budget, which would ultimately be approved as part of the property’s overall budget, unless services are funded from an external source and not from the property’s operations.

Can or should tax credits be used for resident services funding?

Two critical factors for maintaining a sustainable resident services model are certainty and flexibility of funding. These factors enable properties to evolve their programming to meet resident needs.

As the federal government shapes its new tax policies, legislators should consider adding resident services to the LIHTC program. The quality, effectiveness, cost, and impact of the resident services would need to be assessed to ensure intended outcomes are achieved.

When paired with philanthropic and government funding, properties will be better positioned to shore up funding for their resident services programming while remaining flexible with implementation.

What are lenders looking for and requiring with regards to resident services?

Today there is no standard set of requirements that lenders and investors use to evaluate resident services programs. Some leverage the CORES certification, including through Fannie Mae’s Enhanced Resident Services program, which allows eligible deals to take advantage of improved terms if the sponsor or third party service provider is CORES certified. Other lenders and investors who have their own programs to fund resident services may have their own criteria to evaluate the program need and performance.

Learn more about Capital One’s commitment to affordable housing and resident services.