The article discusses the potential for mergers in the affordable housing sector, likening it to the renewable energy market, which faces similar pressures from subsidy dependency. Current nonprofit organizations in affordable housing often operate on thin margins and can be vulnerable due to their small size. The National Housing Trust suggests that engaging in strategic mergers could enhance operational efficiencies and create stronger, more resilient entities that can better serve communities, despite the challenges posed by a crowded nonprofit landscape.
Exclusively dependent on subsidy dollars, many nonprofit housing firms might find themselves at risk unless they adapt their strategies, potentially through mergers.
The affordable housing sector is saturated with small nonprofits that often struggle to sustain operations, threatening long-term viability without collaboration and consolidation.
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