Lessons from 1,000+ Units: Affordable Housing Development with Stef Kondor

Introduction: Why This Episode Matters

When most people think about affordable housing, they picture the buildings. But behind every successful project is a developer balancing people, finances, and politics. In this episode of the Affordable Housing & Real Estate Investing Podcast, Kent Fai He sits down with Stef Kondor, a nationally recognized affordable housing developer who has overseen the creation of more than 1,000 units. Stef was honored as one of the Women of Influence in real estate, and she brings a rare perspective that blends property management, asset management, and development.

For investors, developers, and advocates, Stef’s story matters because it reveals the real skills needed to move from finance into housing development, the pitfalls new asset managers face, and the critical role of public-private partnerships in solving the housing crisis.

What Mistakes Do Developers Make in Property Management?

Affordable housing success is not just about breaking ground. Stef emphasizes that the real foundation of any project lies in property management. Developers often underestimate how difficult frontline work is—collecting rent, addressing tenant challenges, and maintaining daily operations

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As Stef puts it:

“You can build the most beautiful, fantastic building. And if it is not well operated, it will not be a success.”

Strong operations mean treating residents with respect and protecting the financial health of the asset. For investors, that means vacancy reduction, higher retention, and stronger long-term returns.

What Do Asset Managers Need to Watch Out For?

Moving from property management to asset management gave Stef new insight. Too many professionals assume the budget is accurate without questioning assumptions. Stef advises every investor or asset manager to take a curious, forensic approach:

• Look at historical benchmarks.
  
  

• Question sudden changes in financial trends.
  
  

• Understand the personality behind the projections—are they overpromising or underpromising?
  Stef Kondor »»» Lessons from 1,…
  
  

“Having a curious mind will really make you excellent in your career… don’t just glaze over numbers, ask why.”

This mindset not only protects your project but also builds credibility with lenders and investors who expect tough questions.

How Can Finance Professionals Transition into Affordable Housing?

Stef’s journey from Wells Fargo banking into affordable housing is a powerful roadmap for anyone in finance who wants to make a bigger impact. Banking gave her the ability to assess deals from a risk perspective—a skill that translates directly to development and asset management

She explains that understanding how banks underwrite deals gives developers a major edge: you already know what lenders will ask before you seek financing.

For anyone stuck in a corporate role, Stef’s story shows how transferable skills in risk management, credit analysis, and budgeting can open doors into housing development.

What Is the Role of Politics and Partnerships in Development?

One of the biggest surprises Stef faced when moving into development was the political backdrop. Securing city and state funding requires negotiation, trust, and relationship-building.

She uses decision trees to simplify complex negotiations—breaking down priorities, sequencing decisions, and analyzing ripple effects

. The keys to success:

• Predictability in execution.
  
  

• Strong communication with public partners.
  
  

• Flexibility to adjust while protecting project feasibility.
  
  

As Stef puts it:

“Partnerships work when you balance trust, communication, and integrity. That’s the same in housing as it is in life.”

How Are Affordable Housing Deals Financed?

Stef walks through the capital stack for affordable housing:

• 20–25% equity from Low-Income Housing Tax Credits (LIHTC)
  
  

• 30–50% debt through tax-exempt bonds
  
  

• Remainder through soft debt (city or state subsidies, often 0% long-term loans)
  
  

Without LIHTC, very little affordable housing would get built. Stef highlights how federal policy—like reducing the 50% bond requirement to 25%—could immediately double development capacity in states like Oregon.

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Why Is Affordable Housing Supply So Hard to Solve?

Despite all these tools, Stef notes the shortage persists for three main reasons:

1. Short-term rentals removing supply from the market.
   
   

2. Lag since the Great Recession, when new construction never caught up.
   
   

3. High interest rates and inflation, which increase development costs.
   
   

She calls for stronger federal action, pointing to the first presidential candidate in U.S. history to make housing a central platform as a hopeful sign.

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Key Insights from Stef Kondor

• Respect property management: Great buildings fail without great operations.
  
  

• Be curious with numbers: Always dig into budgets, trends, and assumptions.
  
  

• Leverage transferable skills: Banking and finance backgrounds are powerful entry points into housing development.
  
  

• Politics matter: Development is about negotiation, trust, and community buy-in.
  
  

• Capital stack knowledge is essential: LIHTC, bonds, and subsidies are the backbone of affordable housing deals.
  
  

Best Quotes

• “You can build the most beautiful, fantastic building. And if it is not well operated, it will not be a success.”
  
  
  

• “Having a curious mind will really make you excellent in your career.”
  
  
  

• “Development is not just about dreaming big, it’s about what’s executable.”
  
  
  

• “Partnerships work when you balance trust, communication, and integrity.”
  
  
  

• “Housing stability creates opportunities for families to thrive.”
  
  
  

FAQ: Common Questions This Episode Answers

Q: What skills from finance help in affordable housing development?
A: Risk assessment, credit analysis, and budgeting are directly transferable. They help developers anticipate lender questions and structure deals more effectively.

Q: Why is property management critical to affordable housing success?
A: Even the best-built projects fail without strong operations. Respecting residents, reducing vacancy, and managing finances make or break long-term viability.

Q: How are affordable housing projects usually funded?
A: Through a mix of LIHTC equity, tax-exempt bonds, and soft debt subsidies from cities or states.

Q: Why is affordable housing supply so limited?
A: Short-term rentals, construction delays since the Great Recession, and rising interest rates all reduce available stock.

Q: What role does politics play in housing development?
A: Cities and states control land, funding, and approvals. Building trust with these partners is just as important as financial modeling.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.