Pre-Development Practice

The work that decides whether a building exists.

Pre-development is the quiet, technical year in which a housing project either becomes fundable, buildable, and politically survivable, or quietly dies on a planner's desk. It is the most consequential and least visible work in real estate. It is also the work we do best.

Practice Scope
Engagements
Feasibility through capital close
Clients
Mission-driven sponsors & CDCs
Geography
West of the Rockies
A Note on the Work

Most mission-driven housing projects do not fail in construction. They fail in the eighteen months before it.

The American affordable housing industry has, over the past forty years, converged on a single dominant pre-development pathway: the Low-Income Housing Tax Credit. Where LIHTC works, it works well. Where it does not, for projects too small, too unusual, too fast, or too mission-specific to fit the formula, sponsors are often left without a viable second route. The result is a system that produces a great deal of one kind of housing and very little of every other kind.

Our practice operates in the second category. We design pre-development sequences for projects that LIHTC cannot or will not finance: assembling capital from a wider palette, structuring partnerships that hold under stress, and shepherding deals from site control through capital close without losing months to the wrong banker or the wrong incentive program.

The work is unglamorous, sequential, and exacting. Done correctly, it is invisible by the time the building opens.

The Practice

Six disciplines.
One sequenced engagement.

Pre-development is not a checklist. It is an ordered sequence in which each decision constrains the next. A capital stack designed before the legal entity is structured will need to be unwound. An incentive package layered before the lender is selected will not close. We work the order.

01Discipline One

Capital stack optimization

Structure each layer of capital, from senior debt and concessionary equity to soft funds and sponsor capital, so the sponsor retains control while the deal carries the leverage it needs to pencil.

02Discipline Two

Banking partnership development

Match the project with a lender whose CRA discipline, regional footprint, and underwriting appetite actually fit the deal. The wrong bank kills more projects than the wrong site.

03Discipline Three

Incentive stacking

Layer municipal, state, and federal incentives (Opportunity Zones, MFTE, CHIP, AHP, Brownfields, 1590) in the correct order, without forcing the project through LIHTC if LIHTC is wrong for it.

04Discipline Four

Impact investor strategy

Identify and engage the six investor archetypes, from CRA-motivated banks and intermediaries to family offices, foundations, community foundations, and donor-advised funds, on their own terms, in their own language.

05Discipline Five

Financial modeling

Pro forma discipline built on real construction costs, defensible operating assumptions, and the kind of sensitivity analysis a lender's credit committee will actually accept on first pass.

06Discipline Six

Mission-protective legal architecture

Project-specific LLCs and ring-fenced partnership agreements designed so the building can survive a sponsor's worst quarter without losing the community it was built to serve.

A Position on the Tools

LIHTC built much of the country's affordable housing. It cannot build all of it.

The tax credit was designed for a specific scale and a specific income band. Projects too small to amortize its transaction costs, too fast for its multi-year application cycle, or too narrowly targeted for its compliance framework simply do not get built within it. For many of the populations we serve, foster youth, refugees, and seniors at the edge of affordability, the gap between the LIHTC formula and the actual housing need is structural.

We have not, to date, used LIHTC in any project we have led. That is a deliberate choice, not an absence of capability. Every deal we have closed has been assembled from a wider palette of capital, including CRA equity, municipal soft funds, federal grants, sponsor capital, and mission-aligned debt, structured precisely because LIHTC was the wrong tool for what the project needed to be. How the non-LIHTC path works.

Selected Collaborators
Spokane, WA · Under Construction
Excelsior Wellness

The Landing: a 24-unit intergenerational community for foster youth, seniors, and workforce residents.

See the project

Full pre-development engagement, feasibility through capital close, for a longstanding Washington nonprofit healthcare provider with decades of work serving at-risk youth. The project sits adjacent to Excelsior's existing vocational training center, integrating housing with the institutional pipeline of skills, mentorship, and economic mobility the organization has already built.

One-third of units serve transition-aged youth, including those aging out of foster care. One-third serve seniors on fixed incomes. One-third serve workforce residents at or below 80% of area median income.

Ground broken September 2025 · Certificate of Occupancy targeted July 2026

Navajo County, AZ · In Development
Sitgreaves Community Development Corporation

A childcare-anchored housing project for working families in rural Arizona.

Active engagement with Sitgreaves CDC across site identification, financial modeling, and the potential structuring of a full development. The project is being designed around high-quality childcare as its anchor use, with housing built around it rather than alongside it.

The local context is unsparing: working-poor parents in this community frequently have no safe option but to leave young children locked at home while they work. The pattern is so widespread that local law enforcement has, by necessity, stopped responding to related calls. The childcare facility is not a project amenity. It is the project's reason for being.

If your project deserves a real beginning, begin it well.

We take a small number of pre-development engagements each year. Write to us about your site, your population, and what you intend to build.