How to Raise Capital for Affordable Housing: Lessons from Matthew Haas

Why this episode matters for investors, developers, and advocates

Affordable housing is often described as one of the toughest puzzles in real estate. The need is massive, the financing is complex, and community acceptance is never guaranteed. But when you sit down with someone who has raised over $600 million for affordable housing projects, the path forward becomes much clearer.

On this episode of the Affordable Housing & Real Estate Investing Podcast, Kent Fai He welcomes Matthew Haas, Senior Vice President and Senior Banker at KeyBank. From starting out as an architect in New York to raising capital across nonprofits, syndicators, and major banks, Matthew shares a roadmap that every developer and investor can learn from.

If you’ve ever wondered how to structure deals, attract capital, and create community impact at scale, this conversation is a must.

What does it take to raise capital for affordable housing projects?

According to Haas, raising capital is never just about numbers—it’s about narrative. Investors, especially banks with Community Reinvestment Act (CRA) obligations, want two things:

1. A reasonable financial return, even if it’s below market rate.
   
   

2. A clear story of community impact that aligns with their regulatory and mission-driven goals.
   
   

Developers who can show how their projects transform neighborhoods—through deed restrictions, workforce housing commitments, or added community services—are the ones who stand out.

How do banks and investors define workforce and attainable housing?

The terms “workforce” and “attainable” get thrown around often, but Haas breaks them down precisely:

• Big Affordable: Housing targeted to 30–60% of Area Median Income (AMI), typically through Low Income Housing Tax Credits (LIHTC) and deep subsidies.
  
  

• Small Affordable / Attainable: Housing between 60–120% AMI, serving renters who make too much for subsidies but can’t afford market rates.
  
  

This distinction matters because capital providers want clarity. When developers can articulate exactly who their housing serves, they gain credibility.

What challenges come with raising affordable housing capital?

Haas makes it clear: you will face tough questions. Investors will ask about portfolio composition, supportive housing percentages, or long-term sustainability. His advice?

• Admit when you don’t know and commit to following up.
  
  

• Leverage your network to connect investors with partners who can fill gaps.
  
  

• Act as a trusted advisor, not just a dealmaker.
  
  

That mindset builds lasting relationships, ensuring that even if one deal doesn’t fit, the investor comes back for the next one.

What innovative deal structures are emerging today?

Affordable housing deals succeed when developers pull multiple levers. Haas highlighted several creative structures:

• Nonprofit partnerships: Joint ventures with nonprofits unlock property tax exemptions through public welfare status.
  
  

• Ground leases from faith-based institutions: Churches or temples with excess land can lease long-term at low cost, making deals feasible.
  
  

• University and healthcare collaborations: Schools and hospitals can develop housing for staff, reducing turnover while serving community needs.
  
  

• Retail co-development: Projects like housing above a Costco show how mixed-use models can transform communities.
  
  

Each of these structures lowers costs and improves feasibility while aligning with mission-driven goals.

Why is solving affordable housing so difficult?

Haas points to one core issue: the narrative problem. Too often, communities equate “affordable housing” with “public housing” or “Section 8,” triggering fear and opposition.

Developers must:

• Slow down and listen to communities.
  
  

• Frame projects as workforce, attainable, or mixed-income solutions.
  
  

• Broaden conversations to include all forms of housing, not just deeply subsidized units.
  
  

Changing the story is as important as changing the financing.

Key Insights from Matthew Haas

• Capital follows narrative: Investors want returns, but they also want a clear story of impact.
  
  

• Workforce vs. attainable: Precision in language builds trust with capital providers.
  
  

• Nonprofits are critical: Their tax-exempt status and mission-driven governance make deals possible.
  
  

• Partnerships unlock scale: Universities, hospitals, and churches can be overlooked but powerful partners.
  
  

• Narrative wins community support: Affordable housing succeeds when the story resonates locally.
  
  

Best Quotes from Matthew Haas

“Raising capital is about managing a narrative. It’s about showing investors how real estate can transform communities.”

“If a developer is willing to deed restrict their properties, the narrative becomes transformative.”

“No margin, no mission. Nonprofits need to stay in the black just like for-profits.”

“Affordable housing is hard to solve because we haven’t slowed down enough to listen to what communities want.”

Common Questions This Episode Answers

How is raising capital for affordable housing different from market-rate real estate?
It focuses less on maximizing returns and more on creating impact narratives that align with CRA requirements and investor missions.

What’s the difference between workforce housing and attainable housing?
Workforce housing typically serves households at 60–120% AMI, while attainable housing can stretch to 150% AMI, targeting those who earn too much for subsidies but can’t afford market rents.

Why partner with nonprofits on affordable housing projects?
They provide tax benefits through property tax exemptions and add credibility by ensuring community mission alignment.

What innovative structures can make deals feasible?
Ground leases from faith-based groups, partnerships with universities and hospitals, and retail/housing co-developments are all emerging models.

Why has affordable housing been so difficult to solve?
Because of stigma, NIMBYism, and lack of clear communication. Developers must shift the narrative and involve communities early.

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. His mission is to provide everyday investors with the tools, knowledge, and connections to build wealth while solving America’s housing crisis.

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.