Safehold Expanded Ground Lease Affordable Housing Platform
The firm grew its affordable housing model through Low-Income Housing Tax Credit project funding across the U.S.
Updated on Oct. 5, 2026 in Apartments
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Since launching a dedicated platform in 2025, Safehold has expanded its ground lease model to support affordable housing developments. The company has facilitated capital for projects utilizing Low-Income Housing Tax Credits, including major activity in California and recent expansion into Texas.
Why it matters
Elevated interest rates and rising development costs have created significant financing gaps for affordable housing projects. The ground lease model helps bridge these gaps by providing capital at costs lower than conventional debt, allowing developers to allocate more funds toward construction.
Safehold offers 99-year ground leases featuring fixed rent increases without fair-market resets, which can boost proceeds for 4 percent LIHTC projects by 10 to 20 percent. The company has closed 25 leases specifically for California affordable developments.
The players
Safehold
A company specializing in ground lease investments that provides capital for real estate developments.
Steve Wylder
A corporate figure who discussed the company expansion during an interview in late September 2026.
The details
Safehold provides capital at a premium to land value, serving as a financial alternative to traditional debt for developers. After success in California, the firm began diversifying its footprint in 2026 by completing its first three LIHTC-related transactions in Texas.
Timeline
Safehold launched its dedicated affordable housing platform in 2025.
The firm completed its first three LIHTC transactions in Texas in 2026.
Culture Shift
The rise of the ground lease model for affordable housing marks a shift in how developers leverage federal tax incentives like the Low-Income Housing Tax Credit. This strategy reflects a broader move toward creative financing as traditional debt markets become increasingly expensive for developers.
The expansion of these ground leases can help keep new affordable housing developments viable in high-cost regions. Residents may see more apartment projects reach completion as developers find more efficient ways to finance their construction.
The takeaway
The ground lease model is increasingly becoming a standard financial tool for closing the funding gap in affordable housing. Developers looking to maximize project viability should consider how land-based capital strategies can supplement traditional tax credit equity.
Further reading
Learn more about evolving rental market strategies on our Apartments page.
Source note: This article includes information reported by Commercial Observer.
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