While access to capital is still an issue for developers trying to get their projects off the ground, there is optimism in the affordable housing industry:

• Demand for affordable housing is stronger than ever
• The capital markets outlook shows growing optimism
• New investors are beginning to fill the gap left by financial institutions

Overall, developers are hopeful that they've seen the worst of the storm, and they expect their 2010 numbers to improve. They plan to start as many as 27,551 affordable units in 2010, which would be a big 65 percent improvement over 2009. They expect to deliver 21,532 units, a 6 percent increase.

The industry has been searching for new investors to replace several companies that have dropped out of the market or reduced their investing levels in the past two years. Google is one such company.

Google's participation is significant for a number of reasons, according to market experts. "To invest in LIHTCs now, a corporation has to believe that a) the corporation will have a meaningful tax credit appetite for many years to come, and b) the LIHTC program is a proven and reliable vehicle, recent real estate troubles notwithstanding," says David Smith, chairman of Recap Real Estate Advisors.

For more information on the affordable housing market and multifamily housing in general, visit the publisher's blog.