In previous sections, we explored the process of developing an affordable housing project from start to finish, covering everything from site selection and financing to construction and property management. While understanding the mechanics of a project is crucial, becoming a successful affordable housing developer requires more than just knowledge of the process—it demands experience, persistence, and the ability to constantly solve problems. This section shifts focus from individual projects to the career path itself, guiding aspiring developers on how to break into the industry, gain experience, and build a business over time.
Development is a career that does not require a specific educational background. Many successful developers start in adjacent fields such as nonprofit housing organizations, real estate finance, construction, or brokering real estate before transitioning into development. Many start in fields completely unrelated to real estate but learn skills that are transferable to the industry. More important than any particular background is gaining hands-on experience—learning by doing, working on small projects, and gradually scaling up to larger developments.
Education and Adjacent Careers in Affordable Housing Development
While no specific degree is required to become an affordable housing developer, certain educational backgrounds provide a strong foundation for success in the industry. Real estate development is a complex field that involves financing, planning, design, construction, and legal considerations. A formal education in key disciplines can help aspiring developers understand the financial structures, regulatory frameworks, and urban dynamics that shape affordable housing.
Education for Aspiring Affordable Housing Developers
Several undergraduate and graduate programs align well with a career in affordable housing development. For those looking to specialize early, these degrees offer a direct path into the industry:
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Finance – A strong financial background can help a developer structure deals, manage budgets, and understand the nuances of debt and equity financing.
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Urban Planning – A degree in urban planning provides insight into land use policy, zoning regulations, and community development, essential for navigating affordable housing approvals. It also covers housing typologies, transportation networks, and sustainable design, helping developers create functional, aesthetically pleasing communities.
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Architecture and Engineering – A background in architecture or civil engineering can be beneficial in understanding project feasibility, design principles, and construction logistics..
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Business Administration – A degree in business, especially with a focus on real estate, can provide a broad understanding of project management, negotiation, leadership, and financial modeling. Some business programs also offer real estate courses or specializations.
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Master’s in Real Estate Development (MSRED) – This degree provides a deep dive into the real estate industry, covering everything from feasibility studies and financing models to project management and regulatory compliance. Some MSRED programs offer a concentration in affordable housing or community development.
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MBA with a Real Estate Focus – An MBA with a concentration in real estate emphasize high-level project management, real estate investment, and strategic business planning.
Adjacent Careers That Lead to Affordable Housing Development
Many affordable housing developers begin their careers in adjacent fields, gaining experience in different aspects of the development process before transitioning into a development role. Some of the most common paths include:
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Law – Attorneys specializing in real estate and land use gain experience in contract negotiations, zoning approvals, financing agreements, and compliance with affordable housing regulations.
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Business and Finance –Experience in real estate financial transactions – underwriting loans, structuring tax credit deals, and managing real estate investments – provides a strong foundation for transitioning into development.
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Real Estate Brokerage and Property Management – Real estate brokers and property managers develop an understanding of market trends, property valuation, and tenant needs.
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Construction and Contracting –Developers with a construction background often have a practical understanding of cost estimation, project feasibility, managing construction projects, and working with developers and architects.
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Architecture and Design –Expertise in design efficiency, sustainability, and compliance with building codes gives architects a unique perspective on housing development.
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Urban Planning and Community Development –Land use policy, zoning approvals, and working with community stakeholders is good experience for developing affordable housing.
Making the Transition
Established developers will tell you that while formal education and adjacent careers provide valuable knowledge, learning to be a developer really comes from experience. By starting small and gradually taking on bigger projects, developers build the skills and credibility needed to make a lasting impact in the field.
Those first projects – renovating and flipping an existing house or developing a small number of single-family or multifamily homes – often require new developers pull from their personal savings and/or to raise funding from and partner with their network of family, friends, or co-workers. At the beginning, development may be a side hustle while they kept their full-time job.
Once you have completed a project, you will have to decide whether holding or selling the property is the best strategy toward meeting your goals. Holding and renting will help you build equity through appreciation and possibility generate income from cash flow. Selling will generate a faster return, allowing you to recycle capital into larger and larger projects.
To get into larger projects, you will likely need a partnership with a more established developer. This may go against the independent, entrepreneurial spirit that leads people into development, but it is necessary. Understand and build up what you can bring to the table that would attract such a partnership. Having site control over a development site is a strong pathway to a partnership. Otherwise, work on learning as much as you can about your market – sales/rent prices, occupancy rates, housing typologies, etc. – and building a network. A co-developer will find value in partnering with someone with local information.
Treat those initial partnerships a means to gaining experience and know-how more than making money, but still acknowledge what you are bringing to the table. Iron out the partnership expectations in plain terms from a business perspective first before you move to formalize it into a legal contract.
From there, you will be leveraging experience and partnerships and slowly building your balance sheet to take on more deals.
Networking and training opportunities will also help further your career:
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The Mississippi Home Corporation conference is held annually and will have informative session on LIHTC basics and other programs operated by MHC.
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Novogradac is a professional services firm that provides trainings around LIHTCs and other tax credit programs.
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NeighborWorks America provides an Affordable Housing Professional certificate program, which includes courses on real estate financing, project planning, and development, equipping participants with essential knowledge to navigate the complexities of affordable housing projects.
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The Housing Credit Certified Professional (HCCP) designation from US Housing Consultants offers in-depth understanding of tax credit, USDA Rural Development, and HUD regulations and their application in affordable housing development. Annual conferences by Mississippi Association of Affordable Housing Providers (focusing primarily on LIHTC) and the Housing Association of Mississippi (focusing primarily on USDA Rural Development) are other networking opportunities.
Financial Hurdles
The most significant hurdle a developer will face is securing the financing needed to move projects forward. Lenders and equity investors expect a track record of successful developments, creating a paradox for emerging developers: they need financing to complete projects and gain experience, yet many financing sources require prior experience before they will lend. This “chicken-and-egg” dilemma is one of the greatest barriers to entry in the field.
The financing process is complex – especially for subsidized projects – due to the perception of risk—both real and perceived. Lenders and investors often view affordable housing as riskier than market-rate projects, given the reliance on government subsidies, regulatory compliance requirements, and extended project timelines. This perceived risk increases scrutiny for newer developers, making it even harder to access traditional sources of funding. Financial institutions tend to be conservative when assessing applications from emerging developers, sometimes subjecting them to heightened due diligence or imposing stricter requirements than those faced by more established developers. Another key challenge is the requirement for personal guarantees. Lenders often require developers to personally guarantee loans, meaning they must demonstrate sufficient liquid assets to cover potential losses. This can be a major hurdle for new developers who do not have significant personal wealth or assets to use as collateral. Without a strong financial position, many developers find themselves unable to secure financing independently.
Again, starting small and slowly building credibility and a balance sheet will be key to building lender and investor trust and getting bigger loans and investments. Understand that the key to building trust will be to earn returns for their business.
As noted previously, one way that emerging developers can overcome financing barriers and build experience is by entering into joint venture (JV) partnerships with more established developers. Partnering with an experienced firm allows newer developers to gain credibility, leverage their partner’s track record, and meet the financing qualifications required by lenders and investors. However, JV partnerships must be structured carefully to ensure that new developers receive their fair share of revenues and experience. While a JV can help newer developers gain experience, they should ensure that the partnership terms allow them to build their own capacity and financial resources rather than being left with minimal ownership in projects they helped originate. For more information on JVs, see Phase 4: Securing Funding.
As development organizations grow, building staff capacity will be a persistent challenge. They must build a qualified and experienced team to support the development process, however, hiring skilled professionals—such as project managers, financial analysts, and compliance specialists—requires financial resources that emerging developers may not yet have. This creates a difficult balancing act: developers need experienced staff to execute projects successfully, but they also need projects (and funding) to afford that staff.
Some developers address this by working with consultants or outsourcing key tasks until they can afford in-house employees. Others seek grants or operational funding from government agencies or philanthropic organizations to help cover staffing costs. Ensuring that a development team has the necessary experience, technical expertise, and industry knowledge is crucial for long-term success and credibility with financing institutions.
Conclusion
Becoming a successful affordable housing developer requires a combination of experience and persistence. Hands-on experience is the most critical factor in breaking into the field. Managing finances wisely, reinvesting earnings, and maintaining alternative income streams can provide you the stability needed to grow sustainably in this industry.
Despite these challenges, affordable housing development offers immense rewards—not just financially, but in creating lasting community impact. By starting small, building expertise, and strategically forming partnerships, developers can move from their first project to larger, more complex developments that provide much-needed housing solutions. With perseverance and the right approach, aspiring developers can carve out a successful career while making a meaningful difference in the communities they serve.