Brisben’s Battle

Suburban Opportunities Some cities embrace affordable housing because they understand that teachers, firemen, policemen and other people that work in their service areas need safe and decent housing, says Brisben. However, other cities don’t have the same approach.

For example, “Cincinnati is a very difficult place to do affordable housing, unless you want to do it in the traditional low-income areas and continue to pack low-income people into low-income areas where the jobs are not located and where the children don’t have the same opportunities for education,” he says.

Because the jobs and better school systems are in the suburbs, The Brisben Cos. prefers to build there, he explains.

Magnolia Pointe is a mixed-income property in Duluth, Ga. The 242-unit complex offer a fitness center, playground, clubhouse, business center and picnic area. “I was reminded of why we do this when I recently sat through a small focus group and listened to a mother who said she was willing to do anything to get her child into the school system in which our development was located,” says Paxton. “The development was in an area of town with high rents and very little multifamily options. I think that is a strong reason Bill still does this. He is big on providing opportunities for families to break the cycle of poverty through employment and education. By providing affordable units in thriving suburbs, families are able to leave inner-city environments which may not provide such an opportunity.”

Because he grew up poor in Cincinnati, Brisben recognizes the importance of providing those opportunities. His own experience is a part of why he so staunchly advocates affordable housing. Not only has he made a career decision to provide affordable housing, but he also dedicates his personal time to giving back to the community.

From Head Start programs to reading workshops, Brisben plans to be involved in President George W. Bush’s education initiatives.

Community Headaches Brisben believes that part of the initial problem with affordable housing is the name of the program that provides the main source of funds for these projects – the Low-Income Housing Tax Credit (LIHTC) program. “It should never have been called ?low-income housing’; it should have been called ?moderate-income housing.’ Because of that connotation, you have a battle [from] day one in so many communities.”

In the past, the company has tried to work with a community to diffuse its fear. “When discrimination – whether on an economic level or a racial level – is a group’s primary objection, there is nothing you can say to them that is going to satisfy their concerns,” says Brisben. “And they believe their rights, unfortunately, are greater than their [prospective] neighbor’s rights.”

The Brisben Cos. prides itself on using quality materials in all key components of construction. In the kitchen, the company uses oak cabinets. But that’s not affordable housing’s only challenge. Besides the constant legal battles and community groups opposing projects, there is a lot of red tape in the effort to obtain funds.

“This business is as close to brain surgery as possible,” says Brisben. “In order to get the tax credit award, you basically have to see the forest through the trees.” This means knowing what each state is looking for in its qualified allocation plan (QAP).

Some states want affordable rural housing developments, while others are looking for affordable housing in an urban setting. Brisben’s development team specializes in finding out what states want and, in turn, provides the state with a development proposal that meets the need. In some states, the need may be a market-rate component. In others, it may be after school programs with computer labs.

“To be able to dissect the QAP and understand what the agency wants, then provide it, is the way we stay super competitive and why we get a high percentage of tax credit awards,” says Brisben. “It’s a real discipline to be able to do that.

“Unfortunately, an awful lot of developers do their numbers on yellow pads of paper and are not as sophisticated and detail oriented as maybe they need to be,” says Brisben. “Our philosophy has always been if you dot the I’s and cross the T’s and you’re willing to deal with the paperwork that’s involved, you can be successful.” The Brisben Cos. has a long and successful track record of managing its properties and finishing construction in a timely manner and within budget, says Don Moore, senior vice president of Bank of America. “They have expertise in site selection, construction process, the overall management of their properties and compliance with numerous regulations involving affordable housing.”

The Brisben Cos. operates in 17 states and owns 15,000 units, of which 11,500 are affordable housing.