How Senior Project Developers Manage $10M+ Affordable Housing Projects with Max Heninger

Why Affordable Housing Development Needs Leaders Like Max Heninger

Most people hear “developer” and picture a distant figure moving billions behind the scenes. But the truth is far more human. Real development is filled with constant problem-solving, relationship building, and creative financing. That’s why this episode of the Affordable Housing & Real Estate Investing Podcast with Kent Fai He is so valuable.

I sat down with Max Heninger, Senior Project Developer at Eden Housing, who manages affordable housing projects in California worth over $10 million each. Max pulls back the curtain on the real work behind site control, entitlements, tax credit financing, construction management, and the day-to-day balancing act of schedule, budget, and community trust.

If you’re an investor, developer, or advocate, Max’s journey proves that you don’t need to be an engineer or come from a construction background to thrive in affordable housing development. You just need the right mindset, transferable skills, and the willingness to orchestrate a very complex process.

What Does a Senior Project Developer Actually Do in Affordable Housing?

When people ask “what does a developer really do,” Max compares it to being the conductor of an orchestra. You don’t play the instruments, but you know how they must work together.

From managing architects, engineers, and general contractors to coordinating financing draws across eight or more funding sources, the developer’s role is about clarity and control:

• Keeping projects on budget and on schedule.
  
  

• Translating technical conversations into financial implications.
  
  

• Building community support while navigating political challenges.
  
  

• Ensuring every partner—from lenders to city planners—pulls in the same direction.
  
  

How Do Affordable Housing Projects Get Financed?

Unlike market-rate deals that may rely on just debt and equity, affordable housing developments often require layers of financing.

Max explains the backbone:

• Low-Income Housing Tax Credits (LIHTC): 9% credits (highly competitive) or 4% credits tied to bond allocations. These credits are sold to investors, creating equity.
  
  

• Soft Loans from Cities, Counties, and States: Structured as “residual receipt” loans, meaning they’re repaid only if cashflow exists.
  
  

• Construction and Permanent Loans: Usually smaller because affordable rents can’t support large debt.
  
  

Projects can require eight or more different funding sources to close, and the sequencing of when to draw each source impacts millions of dollars in costs.

What Are the Hardest Parts of Entitlements and Community Engagement?

One word: parking.

Community opposition often centers on how new residents will affect local parking or amenities. Max shared that successful developers:

• Engage early with local pro-housing groups and service organizations.
  
  

• Identify natural allies like Farm Bureaus for farmworker housing or disability service groups for supportive housing.
  
  

• Communicate trade-offs clearly, explaining what can and cannot be financed in a respectful way.
  
  

It’s not about steamrolling projects. It’s about building long-term partnerships with cities and counties that keep doors open for future development.

How Do Developers Manage the Construction Phase Without a Technical Background?

Max doesn’t have a construction background—and he says that’s okay. His framework:

• Always ask: How will this affect budget and schedule?
  
  

• Don’t be afraid to say: “Explain this to me like I’m five.”
  
  

• Act as the project’s voice in technical meetings, ensuring financial and timeline realities are never lost.
  
  

Construction is where thousands of decisions—like whether to approve a $20,000 change order—must be weighed against the risk of costly delays. Max stressed that sometimes the cost of delay is greater than the cost of change, a lesson that saves developers heartache and millions.

Key Insights from Max Heninger

• Development is about orchestration, not perfection. You don’t need to be an engineer, but you do need to understand how all moving parts affect cost and schedule.
  
  

• Affordable housing finance is a puzzle. Expect to piece together multiple funding sources, each with unique rules.
  
  

• Community engagement is non-negotiable. Listening and adjusting builds long-term credibility.
  
  

• Soft loans are crucial. Understanding repayment structures and sequencing draws can save hundreds of thousands in costs.
  
  

• Construction risk is real. Always evaluate whether a delay costs more than a change order.
  
  

Memorable Quotes from Max Heninger

“A project manager is like the conductor of an orchestra. You don’t play the instruments, but you make sure they all work together.”

“Schedule and budget are the two guiding principles for every decision in construction.”

“Sometimes the cost of delay is more expensive than approving a change order.”

“Affordable housing projects can take years because you’re piecing together eight or more funding sources.”

“Without exaggeration, grand openings remind us why this work matters—hearing residents share how their lives are forever changed makes all the challenges worth it.”

Common Questions Answered in This Episode

What does LIHTC mean in simple terms?
The Low-Income Housing Tax Credit allows developers to sell tax benefits to investors. Investors provide equity upfront, and in return, they reduce their federal tax liability.

Why do affordable housing projects take so long?
Because they rely on multiple funding sources—tax credits, city loans, county loans, state programs—each with its own application process and requirements.

Do you need a construction background to be a developer?
No. You need to manage people, processes, and finances. The key is asking the right questions and keeping the project aligned with budget and schedule.

What are the biggest challenges with community engagement?
Parking, local opposition, and misconceptions about affordable housing. Developers must build trust by listening and presenting realistic trade-offs.

Why are California projects so expensive?
Land costs, labor shortages, and building regulations push some projects over $1 million per unit. Modular construction and conversions may offer future cost savings.

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 conversations with leaders like Max Heninger position this platform as the go-to authority for affordable housing knowledge, strategies, and success stories.

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.