Construction lending carries risks for financial institutions beyond the usual risks of most types of loans. Instead of issuing a loan against known assets or strictly on financial means and history, a construction loan is taken out against an asset that doesn’t exist yet, and that will be constructed under real-world conditions that often don’t…
When it comes to providing affordable housing units, there is a lot of direct social benefit to communities, while offering a financial opportunity for investors, syndicators and lenders. But the opportunity comes with significant risks due to the unique requirements for these projects. From the language in the construction contract to the necessity of ensuring…
After the mortgage crisis of 2008, mass property foreclosures followed quickly, leading into what is now remembered as the Great Recession. This year, 2020, the COVID19 pandemic has shut down economies across the United States, threatening to create yet another wave of foreclosures. But will it be different this time? At GLE Associates, Inc. we…
While the novel coronavirus pandemic has sent shockwaves through the United States and the world, the construction industry remains strong. Many projects have been accelerated to take advantage of the unusual opportunity afforded by the fact that people are staying at home, which in turn reduces traffic and other human-driven factors that can delay projects….
As governments and businesses around the world respond to the crisis created by the novel coronavirus, stay-at-home orders around the United States have prohibited many businesses from continuing to operate. In many areas, dine-in restaurants, clothing retailers, salons, theaters, and many other businesses have been classified as “non-essential” and ordered to shut down. Other types…
The coronavirus pandemic has sent shock waves through the United States, shutting many industries down and changing the face of others. The construction industry has remained relatively resilient so far, thanks to its designation in many areas as an “essential service.” But the designation as an essential service, and the ability to continue operating despite…
Despite advances in safety technology, construction remains one of the world’s most dangerous occupations. Nowhere does this become more vivid in the public imagination, than when there’s a spectacular construction failure. Unfortunately, such spectacular failures happen regularly, and represent only a small portion of the thousands of injuries and deaths that occur on construction sites…
An affordable housing crisis has been developing across the United States since before the Great Recession, and in many areas it threatens the vitality of the entire region. Access to housing has been a concern of the federal government since The National Housing Act of 1934 created the Federal Housing Administration (FHA). Since then, many…
The affordable housing crisis isn’t just a problem for low-income families. It’s a problem for entire communities and economies, and it’s threatening to devastate many urban areas around the country. The Nature and History of the Affordable Housing Crisis In urban areas around the country, low-income families and individuals struggle to afford housing that provides…
Despite advances in safety technology and practice, construction remains one of the most dangerous industries in the United States. Every job site contains hundreds of potential hazards, in a landscape that changes on a daily basis. Annually, almost a thousand people die due to construction accidents, representing 20.7% of total private industry fatalities. Tens of…
