The challenge

The solution

The vision

The opportunity

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Bringing clarity to attainable housing development

At Alpha Deal, we believe that tackling the housing shortage supply requires creative problem solving from the top down and the bottom up. We're building the tooling to support the next generation of housing developers solve that problem.

THE CHALLENGE

The current attainable housing system is full of enough challenges.

Understanding if a deal pencils shouldn't be one of them.

70%

of viable attainable housing sites never get properly screened — not because they're bad sites, but because preliminary feasibility takes 4-6 hours per site before you know if it's worth pursuing.

15+

subsidy programs, 127 TCAC scoring criteria, and jurisdiction-specific density bonus calculations must be evaluated for a competitive 9% LIHTC application — before you even know if the site pencils.

70%

of viable attainable housing sites never get properly screened — not because they're bad sites, but because preliminary feasibility takes 4-6 hours per site before you know if it's worth pursuing.

15+

THE SOLUTION

A real deal. A real site. A real decision.

Alpha Deal helps developers reach clarity on feasibility early—before months of work or tens of thousands in pre-development spend.

Time & Cost Impact

Time to clarity: Less than 1 day

Traditional timeline avoided: Approximately 4 weeks

Estimated early-stage cost avoided: $10,000+

SITE ADDRESS

1234 Main Street, Los Angeles, CA

What can this site hold?

Zoning: R3-1

Lot size: 14,500sf

Building footprint: 7480sf

1-BR

2-BR

3-BR

54%

WTD. AMI

Y1 Proforma

Gross potential rent

$957K

$17.4K/unit

Effective gross income

$909K

$16.5K/unit

Opex and reserves

$502k

$9K/unit

Net operating income

$408K

$7.4K/unit

Entitlement: By right

TOC Tier 3 + State Density Bonus unlocks

55 units at 8 stories

Entitlement: By right

TOC Tier 3 + State Density Bonus unlocks 55 units at 8 stories

Is it competitive?

Position:

Strong

— 95 pts

LA Metro pool typically awards at 90–93

Drivers: Large family housing (max pts) + high resource area + site readiness

Risk:

GP experience

— experienced

development partner needed

Pursue 9% competitive path — no need for 4% fallback

How It Gets Paid For

What are the financials?

Total Development Cost

Hard Costs

$10.3M

$340/SF

Soft Costs

$1.1M

10.7%

Developer Fee

$1.5M

13.1%

Financing & Reserves

$0.9M

Total Basis

$13.8M

$251K/unit

Credit Path: 9% LIHTC — covers 82% of development cost

Capital Stack:

Closes at $0.88 pricing

no gap financing required

Credit equity sized to cover TDC with deferred developer fee closing the residual

What are the financials?

Sources

LIHTC Equity ($0.90 pricing)

$25.5M

72.8%

Permanent Debt

$8.43M

24.1%

Deferred Developer Fee

$1.08M

3.1%

Total

$35.0M

$340K/unit

Uses

Hard Costs

$26.2M

$340/SF

Soft Costs

$2.6M

10.7% of HC

Developer Fee

$4.3M

15%

Financing & Reserves

$1.9M

15%

Total

$35.0M

$425K/unit

Eligible Basis

$32.5M

Credit Path: 9% LIHTC

$2.55M over 10y, <2% of available credits

LIHTC equity sized to cover TDC with deferred developer fee closing the residual

What are the financials?

Sources

LIHTC Equity ($0.90 pricing)

$25.5M

72.8%

Permanent Debt

$8.43M

24.1%

Deferred Developer Fee

$1.08M

3.1%

Total

$35.0M

$340K/unit

Uses

Hard Costs

$26.2M

$340/SF

Soft Costs

$2.6M

10.7% of HC

Developer Fee

$4.3M

15%

Financing & Reserves

$1.9M

15%

Total

$35.0M

$425K/unit

Eligible Basis

$32.5M

Credit Path: 9% LIHTC

$2.55M over 10y, <2% of available credits

LIHTC equity sized to cover TDC with deferred developer fee closing the residual

What are the financials?

Sources

LIHTC Equity ($0.90 pricing)

$25.5M

72.8%

Permanent Debt

$8.43M

24.1%

Deferred Developer Fee

$1.08M

3.1%

Total

$35.0M

$340K/unit

Uses

Hard Costs

$26.2M

$340/SF

Soft Costs

$2.6M

10.7% of HC

Developer Fee

$4.3M

15%

Financing & Reserves

$1.9M

15%

Total

$35.0M

$425K/unit

Eligible Basis

$32.5M

Credit Path: 9% LIHTC

$2.55M over 10y, <2% of available credits

LIHTC equity sized to cover TDC with deferred developer fee closing the residual

What are the financials?

Sources

LIHTC Equity ($0.90 pricing)

$25.5M

72.8%

Permanent Debt

$8.43M

24.1%

Deferred Developer Fee

$1.08M

3.1%

Total

$35.0M

$340K/unit

Uses

Hard Costs

$26.2M

$340/SF

Soft Costs

$2.6M

10.7% of HC

Developer Fee

$4.3M

15%

Financing & Reserves

$1.9M

15%

Total

$35.0M

$425K/unit

Eligible Basis

$32.5M

Credit Path: 9% LIHTC

$2.55M over 10y, <2% of available credits

LIHTC equity sized to cover TDC with deferred developer fee closing the residual

Does It Pencil?

Does it pencil?

Debt Coverage:

1.20x DSCR

— meets minimum

but tight · lenders stress-test to 1.25x+

Cash Equity:

$0 required

no gap financing required

Financial Buffer: 0.5% surplus provides cost overrun protection

Conservative underwriting — $340/SF hard cost critical to viability

The Decision

Proceed

Supporting

Owned land — $0 basis eliminates acquisition risk

Capital stack closes with no gap financing at $0.88

95 pts — 2+ points above LA Metro award threshold

TOC Tier 3 unlocks 55 units by-right

Conditions to resolve

Secure experienced GP partner before TCAC submission

1.20x DSCR is tight — confirm lender comfort or adjust basis

$340/SF hard cost assumption critical — get GC pricing early

File TOC Tier 3 height bonus applications and secure experienced GP partner to submit in next TCAC allocation cycle

THE VISION

We believe in a better way to build.

Our position is that housing supply is a shared community responsibility. Our mission is to enable developers to build their best, allowing communities to live their best.

THE OPPORTUNITY

We’re looking for like-minded   housing developers.

We want to partner with people who believe that housing supply is a community issue, not a niche one. That complexity shouldn’t decide what gets built. And that lean teams deserve better support.

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