The Pinyon Group’s work in executing PTE’s in an example of how the firm leverages its expertise in workforce- and affordable housing to benefit third-party clients while also preserving existing affordable housing stock. In some cases, these clients are utilizing PTE as part of opportunistic acquisition and investment strategies, in other cases they are on behalf of impact oriented investors, and in other cases they are being utilized as a component of restructurings and/or workouts with lenders on leveraged assets.
While these programs vary state to state, they generally involve setting aside a minimum percentage of units (usually 20%) to be covenanted as affordable to households at certain income levels (usually 80% of area median income, but higher in some states and/or counties). Terms of the affordability covenant, and ability to partially or fully exit the program prematurely vary by jurisdiction. Thus far, The Pinyon Group has worked on properties located in Arizona, California, Colorado, Massachusetts, Nevada, and Washington.