Project Analysis for Georgia Implementation

Date: July 30, 2025

This model issues mortgage revenue bonds (MRBs) to build a single development that blends

market‑rate “workforce” homes with an affordable rental component. After the sale of the

workforce units which repays most of the debt, the remaining bond balance stays in place to

finance the affordable rentals.

In effect, the sale revenue from the workforce homes underwrites roughly half the true

construction cost of the affordable units—cutting their effective financing burden in half and

eliminating any need for up‑front local government subsidies.

SIP construction further boosts affordability by halving residents’ utility bills, which can expand

● Issue bonds to build workforce housing

● Home sales pay back the bonds

● Project is done

● Issue bonds to build mixed development (workforce + affordable rental)

Why SIP Construction Makes Sense

SIP (Structural Insulated Panel) buildings use about half the energy of regular construction. That

cuts utility bills by around $70-100 per month, which means people can qualify for bigger

mortgages.

Practical Benefits:

● Faster construction (sometimes weeks instead of months)

● Less waste on the job site

● Better insulation than stick-built

● Lower monthly costs for residents

In Georgia: Various vendors specialize in SIP construction throughout the state, serving cities

Patent-Pending Improvements: North Star Group has developed enhanced SIP systems

including "Integrated Sustainable Housing System" (Application #63/767,801) and "Fully

Integrated Reinforced Modular SIP System" (Application #63/757,822) that could further improve

construction efficiency and performance.

How This Compares to Low Income Housing Tax Credits

(LIHTC)

Most affordable housing gets built using LIHTC, but this approach has some advantages:

LIHTC Challenges:

● Developer (likely nonprofit) keeps ownership of rental component

● Simpler compliance - just maintain affordability requirements

● Mixed-income by design (workforce sales + affordable rentals)

● Less regulatory complexity than LIHTC

● Generates ongoing revenue for the owner/operator

Bond Issuer Requirements: In Georgia, tax-exempt mortgage revenue bonds must be issued by

a governmental entity. The Georgia Department of Community Affairs administers the state's

bond allocation system, with Georgia authorized to use up to $130 per capita annually ($1.4 billion

for 2025). DCA serves as the allocation authority, but local development authorities or the Urban

Residential Finance Authority (URFA) in Atlanta can serve as conduit issuers for qualified

projects. Multi-family housing projects must demonstrate that a minimum number of units will be

set aside for low to moderate income families.

Tax exempt bonds are issued by URFA (the Housing Finance group of Invest Atlanta) to assist

with multifamily housing growth. URFA serves as a conduit bond issuer and receives an annual

tax-exempt bond allocation from GA Department of Community Affairs. Bonds can be used for up

to 100% of total development costs provided debt supports a minimum 1.20x DSCR.

● HUD RAD Program: Lets housing authorities convert to project-based vouchers with

● Georgia Quick Start: The nation's #1 workforce development program has trained more

● Technical College System of Georgia: 22 colleges offering workforce training in 600

● Georgia Power Foundation: Workforce for Georgia grants supporting College & Career

Potential Issues to Consider

● SIP construction requires contractors familiar with the system

● Weather delays can still happen, though less than with stick-built

● Georgia Terra provides SIP services throughout the state, so availability shouldn't be an

● Must meet DCA allocation criteria including job creation/retention requirements for

● Still depends on people wanting to buy the workforce housing units

● Local job market needs to support the target income levels

● Competition from other housing developments

● Local government has to approve the zoning and development plan

● DCA must approve the bond allocation request

● Must hold required public hearings and obtain local government approval

● Federal programs have their own requirements that might not line up perfectly

● Get some ballpark costs from Georgia Terra or other SIP manufacturers in the region

● Line up the basic approvals (zoning, environmental, etc.)

● Apply for any grant programs that could help with infrastructure

● Start the bond allocation application process if the other pieces fall into place

● If it works, see if the model can be replicated in other Georgia communities

● Document what worked and what didn't for future projects

Summary

This approach solves several problems at once: workforce housing shortage, need for more

affordable rental housing, and high utility costs for residents. The financing structure means the

local government doesn't have to put up money upfront, and whoever operates the rental

It's not necessarily better than other approaches, but it might work where traditional funding

sources aren't available or sufficient. The key is making sure all the pieces actually fit together in

practice, not just on paper.