The Top Affordable Housing Developers of 2022 Include Dominium, LDG, and The Michaels Organization
In the United States, affordable housing development has never been more important. According to a 2020 report by the National Low Income Housing Coalition (NLIHC), low-income renters in the U.S. currently face an estimated shortage of 7 million affordable and available rental units. While it’s true that tens of thousands of affordable housing units are developed each year, it’s not nearly enough to keep up with the growing demand from millions of American households.
If you’re thinking of trying to address this need by investing in or developing affordable housing, or if you’re already an established affordable housing developer, it’s essential to understand who the major players in the industry are and what they’re doing.
In this article, we’ll review the top fifteen affordable housing developers of 2021, which are likely to remain the top affordable housing developers of 2022.
We’ve taken our data directly from Affordable Housing Finance’s list of the Top 50 Affordable Housing Developers of 2021, published in June 2022. However, we’ve also added additional information so that readers can understand the unique experience, objectives, and accomplishments of each of these developers.
Dominum: 2021 Unit Starts/Completions: 3,046/2,905
Dominium is currently ranked as America’s largest affordable housing developer. The company, which was founded in 1972, currently manages 30,000 apartments in 19 states. Dominium focuses on a wide variety of affordable housing properties, including historic redevelopments, new construction, LIHTC, and Section 8 projects, rehabilitation, acquisitions, and workout properties.
The firm also puts a strong emphasis on sustainability and energy efficiency, with many of its properties using solar energy to augment their traditional power usage. The company is highly integrated, with an in-house construction and architecture team, and is a licensed contractor in seven states.
Dominium is headquartered in Plymouth, Massachusetts, and is currently led by Managing Partner Paul Sween, and Senior Vice President and Partner Mark Moorhouse.
LDG: 2021 Unit Starts/Completions: 2,930/2,930
LDG, founded in 1994, is currently ranked as the country’s second-largest developer of affordable housing, with nearly 3,000 unit starts and completions in 2021. The company focused mainly on developing communities in the states of Tennessee, Kentucky, Louisiana, and Texas. LDG currently manages a portfolio of more than 70 communities comprising more than 15,000 units in 8 states, including several affordable communities for senior citizens.
LDG is headquartered in Louisville, Kentucky, and is currently led by Principals Mark Lechner and Chris Dischinger.
The NRP Group: 2021 Unit Starts/Completions: 2,361/2,984
The NRP Group, founded in 1994, currently ranks as the third-largest affordable housing developer in the U.S., with more than 2,300 units starts in 2021. Like many other affordable housing developers, The NRP Group is vertically integrated, acting as a developer, general contractor, and property manager for the communities it develops.
Unlike some affordable housing developers, however, the firm also acts as an asset manager for other property owners and developers and is currently providing asset management services for nearly 25,000 apartment units across the U.S. The company also has a strong emphasis on incorporating ESG (environmental, social, and governance) principles into its management and development strategy.
The NRP Group is headquartered in Cleveland, Ohio, and is led by CEO J. David Heller.
The Michaels Organization: 2021 Unit Starts/Completions: 1,978/946
The Michaels Organization, founded in 1973, started nearly 2,000 units in 2021, making it the third-largest affordable housing developer on this list. The company has a focus on creating housing development partnerships, which include projects initiated with partners including public universities, faith-based groups, cities, and nonprofits.
The Michaels Organization currently manages more than 60,000 units across 425 developments in 35 states, Washington D.C., and the U.S. Virgin Islands. The company has directly developed over 55,000 units and currently serves 146,000 residents across its portfolio. In addition to affordable housing, The Michaels Organization also focuses on managing and developing military housing, student housing, and luxury living communities throughout the U.S.
The Michaels Organization is based in Marlton, NJ, and is currently led by CEO John J. O'Donnell.
The Pacific Cos.: 2021 Unit Starts/Completions: 1,768/1,972
The Pacific Companies, founded in 1998, clocks in as the fourth largest affordable housing developer on this list, with nearly 1,800 unit starts and almost 2,000 unit completions in 2021. In addition to affordable housing, the firm also develops workforce housing and senior housing. Unlike most other affordable housing developers, the company also has a major focus on developing charter schools. Since its inception, The Pacific Companies has invested more than $2 billion into its developments.
The Pacific Companies is a vertically integrated development firm, which includes five separate companies, an affordable housing development company, a market-rate development firm, a charter school development company, a general contracting firm, and an architectural firm.
The Pacific Companies is headquartered in Eagle, Idaho, and is currently led by President and CEO Caleb Roope.
Kittle Property Group: 2021 Unit Starts/Completions: 1,460/1,442
Kittle Property Group, which recently rebranded from Herman & Kittle Properties, was initially founded as Herman Associates, Inc. in 1948, and since then, has grown to become one of the largest affordable housing developers in the U.S. Kittle is vertically integrated, with separate development, design, financing, construction, and property management divisions.
Kittle Property Group currently manages 150 properties with over 35,000 residents and has invested more than $2.5 billion in directly developing over 20,000 apartment units across the U.S.
Kittle Property Group is headquartered in Indianapolis, Indiana, and is currently led by President and CEO Jeffrey Kittle.
RISE Residential Construction: 2021 Unit Starts/Completions: 1,274/1,062
Rise Residential Construction is a vertically integrated development company that focuses on both building and managing affordable, market-rate, and senior living apartment properties across the state of Texas. Like many integrated development firms, it both develops its own communities and manages apartment communities for other owners. Unlike most development firms, RISE has announced that it will begin to permit investors to invest in their communities via fractional crowdfunding, though it’s unclear what stage this process is currently at.
RISE Residential is headquartered in Dallas, Texas, and is currently led by President and Director of Development Melissa Fisher.
TWG Development: 2021 Unit Starts/Completions: 1,254/1,199
TWG Development, founded in 2007, is a diversified and vertically-integrated real estate development company that focuses on developing commercial, market rate, affordable, and senior housing assets across the United States. The firm has separate divisions including TWG Development, TWG Construction, and TWG Management, allowing it to develop and manage properties from scratch without relying on external firms. Since its foundation, the firm has invested more than $1.5 billion in developing more than 9,000 units across the U.S.
TWG Development is headquartered in Indianapolis, Indiana, and is currently led by CEO and Founder Tony Knoble.
Commonwealth Development Corp.: 2021 Unit Starts/Completions: 1,230/755
Commonwealth Development Corp., founded in 2001, had more than 1,200 unit starts in 2021, placing it number nine on this list. Like many other affordable housing developers, the company focuses on a three-pronged strategy of development, construction, and design in order to see projects through from beginning to end.
Commonwealth Development Corp. also places a strong emphasis on historical redevelopment, having converted a variety of historical buildings into modern multifamily housing. The company currently manages properties in 13 states including Arizona, Colorado, Georgia, and Indiana.
TWG Development is headquartered in Fond du Lac, Wisconsin, and is currently led by Principal and Founder Louie A. Lange III.
Woda Cooper Cos.: 2021 Unit Starts/Completions: 1,190/913
Woda Cooper, founded in 1990, describes itself as “the country’s first employee-owned, vertically-integrated affordable real estate company.” The firm’s development strategy includes construction, design, and property management, with a specific focus on retrofits and the rehabilitation and repurposing of historical properties. Woda Cooper’s properties span 16 states, mainly on the East Coast of the U.S. The company has developed or redeveloped over 16,000 units across 350 properties and specializes in utilizing the LIHTC (Low-Income Housing Tax Credit) program in order to help finance many of its developments.
Woda Cooper Cos. is headquartered in Columbus, Ohio, and is currently led by Principals Jeffrey Woda and David Cooper Jr.
MVAH Partners: 2021 Unit Starts/Completions: 1,096/272
MVAH Partners, founded in 1993, has developed or acquired over 7,000 affordable housing units across the U.S., including traditional apartment acquisitions, multifamily rehabilitation projects, adaptive reuse projects, single-family developments, and senior housing communities. MVAH takes a multi-pronged approach which includes development, construction management, and property management.
The company also prides itself on its creative financing abilities, including the extensive use of tax credits, HUD multifamily, and USDA multifamily financing programs, as well as its strong relationship with public housing agencies, governments, and nonprofits. MVAH currently manages over 100 communities across 15 states.
MVAH Partners is headquartered in West Chester, OH, and is currently led by managing partners Brian McGeady and Michael Riechman.
McCormack Baron Salazar: 2021 Unit Starts/Completions: 1,050/687
McCormack Baron Salazar, founded in 1973, had more than 1,000 unit starts in 2021, ranking it twelfth on this list. McCormack Baron Salazar has invested a total of $4.8 billion in projects spanning 47 cities across the U.S., resulting in the development of more than 24,000 new homes. Out of these homes, more than 7,000 qualify as green-certified developments.
The firm has also extensively utilized the NMTC (New Market Tax Credit) program, receiving $410 million in NMTC funds and investing $1.5 billion into NMTC projects. As well as developing affordable housing, McCormack Baron Salazar also develops and manages urban commercial properties. In addition, the firm provides asset management, property management, and consulting services to other investors and developers.
McCormack Baron Salazar is headquartered in St. Louis, Missouri, and is currently led by President Vincent R. Bennett.
Gorman & Co.: 2021 Unit Starts/Completions: 1,011/284
Gorman & Co., founded in 1984, is ranked thirteenth on our list of the largest affordable housing developers in the United States. In addition to traditional affordable housing, the firm also focuses on developing workforce housing and transforming historical buildings into multifamily housing with adaptive reuse projects. It also focuses on the preservation of existing affordable housing.
Like many other affordable housing developers, Gorman has three distinct divisions; one for construction, one for architectural design, and one for property management. The company currently manages 60+ housing communities throughout the U.S., 75% of which are affordable housing.
Gorman & Co. is headquartered in Madison, Wisconsin, and is currently led by President and CEO Brian Swanton.
Prestwick Development Co.: 2021 Unit Starts/Completions: 991/182
Prestwick Development Co., founded in 2008, is one of the newer affordable housing development firms on this list. In addition to conventional affordable housing developments, Prestwick also develops Class A multifamily projects, workforce housing, and affordable housing for senior citizens. Over the last decade and a half, the company has developed more than 30 housing projects around the U.S. and has engaged in a variety of joint ventures with outside partners, including several public-private partnerships with municipal governments and housing authorities, including the Atlanta Housing Authority.
Prestwick also has an independent, 100% employee-owned construction arm, Prestwick Construction, which focuses on building both market-rate and affordable housing, including LIHTC new construction projects and the renovation of affordable housing developments.
Prestwick Development Co. is headquartered in Atlanta, Georgia, and is currently led by Founding Partner and CEO Jody Tucker.
The Annex Group: 2021 Unit Starts/Completions: 909/0
The Annex Group, founded in 2006, develops a wide array of multifamily assets, including market-rate housing, affordable housing, student housing, and workforce housing. It currently owns and manages a real estate portfolio worth over $500 million spread across more than 30 communities.
As a builder and general contractor, the company has also overseen more than $975 million in single-family, multifamily, mixed-use, and commercial real estate development projects. Like many other affordable housing developers, the Annex Group has specific expertise in utilizing the LIHTC (Low-Income Housing Tax Credit) program to fund its developments.
The Annex Group is headquartered in Indianapolis, Indiana, and is currently led by President and CEO Kyle Bach.