Seth Gellis, President of CPP Housing.
As America grapples with a worsening (registration required) affordable housing crisis, I think one thing is becoming increasingly clear: We need solutions that scale, deliver results and align public purpose with private execution. That’s why public-private partnerships (P3) are some of the most impactful investments we can make—not just in housing, but in the broader health and stability of our communities.
Often we view affordable housing in narrow terms—as a social service or a box to check. But when structured thoughtfully, these partnerships can do more than build homes. They can help reduce long-term public costs, improve health outcomes and stimulate local economies. In short, public-private partnerships are smart economics.
Public-Private Partnerships
The power of public-private partnerships lies in their structure. The public sector brings critical elements to a project, such as subsidies, regulatory frameworks and alignment with long-term policy goals. The private sector contributes capital, operational expertise and accountability in execution. When those interests are aligned, we can unlock the means for delivering affordable housing at scale.
Programs like the Low-Income Housing Tax Credit (LIHTC) offer tax credits to private investors who finance affordable housing development, incentivizing projects that would otherwise be economically unfeasible. When combined with Section 8 rental subsidies—which provide ongoing support to residents—leaders can help provide long-term housing stability for some of the most vulnerable populations in our country.
Public-private partnerships also help distribute risk and encourage innovation. Developers are incentivized to build quality properties, manage efficiently and maintain affordability over the long term, while public agencies focus on setting standards and ensuring compliance. It’s a shared-value model that, when executed well, delivers more than just housing. It delivers measurable outcomes.
The Hidden ROI: Societal Cost Savings
However, I think the most compelling benefit of P3s isn’t in the units produced—it’s that they can create cost savings across other public systems.
Consider healthcare. Studies have shown that people experiencing homelessness or unstable housing are more likely to rely on emergency services, which can result in higher Medicaid and emergency department (ED) costs.
Providing housing support has helped reduce ED visits and hospital admissions in many cities. For instance, a study in Baltimore reported a 48% decrease in overall hospital visits and a 51% reduction in ED visits among participants after receiving housing through a supportive program. Similarly, a randomized trial in Chicago observed a 29% reduction in hospitalizations and a 24% decrease in ED visits among chronically ill homeless adults offered housing and case management services.
In education, students with secure housing often have better attendance, higher test scores and are less likely to require costly interventions. In fact, a recent study of the Charlotte-Mecklenburg Schools (CMS) noted that housed students are both more present in the classroom and achieve higher proficiency levels.
From a safety standpoint, stable neighborhoods can help reduce crime. And in the workforce, having secure, affordable housing can make it easier for people to hold consistent jobs, access childcare and contribute to the local economy.
In short, every dollar invested in affordable housing can create ripple effects that reduce the financial load on other government services—and increase the productivity and well-being of our communities. That’s why I believe the return on investment (ROI) on caring is infinite.
Creating Effective Partnerships
Business leaders exploring public-private partnerships should start by ensuring strong alignment. Does the public-sector partner share your long-term vision and commitment to measurable outcomes? I’ve found the most effective collaborations are built on mutual goals, a willingness to make data-driven decisions and a focus on sustained impact.
Equally essential is accountability. From the outset, define clear benchmarks, timelines and responsibilities. Establish shared performance metrics and consistent progress reviews to keep both sides aligned and responsive throughout the lifecycle of the project.
I’ve noticed that too often, P3s are approached as purely transactional. But these partnerships are long-term investments in communities—not just construction projects. Overlooking the importance of community engagement or underestimating the complexity of public systems can derail progress. Success depends on trust, transparency and a shared commitment to delivering results that matter.
Tackling The Challenges
Despite their promise, public-private partnerships in affordable housing are not without challenges—especially for private sector partners navigating the public landscape for the first time.
One of the most common obstacles is the complexity and pace of government processes. Lengthy timelines, changing political priorities and bureaucratic red tape can slow progress and introduce significant uncertainty into project planning. In some cases, approvals that were assumed to be straightforward can take months longer than anticipated, jeopardizing financing deadlines and increasing carrying costs.
Another risk is financial viability. Affordable housing projects often rely on layered funding structures—from LIHTC equity to soft loans and rental subsidies—which can be vulnerable to shifting regulations. For developers used to more streamlined capital stacks, this can create exposure and erode margins. Additionally, maintaining long-term affordability requires ongoing compliance and property management standards that differ from market-rate housing, adding operational complexity.
To mitigate these risks, private partners should enter with eyes wide open and invest in building strong, communicative relationships with public sector counterparts. Establishing clear timelines, shared goals and contingency plans upfront can help align expectations and reduce friction. Engaging experienced legal, financial and compliance advisors early in the process can also help prevent costly missteps down the line.
Most importantly, approach these projects with a long-term mindset. Success in P3s requires patience, adaptability and a genuine commitment to delivering outcomes that serve both community and bottom line.
As we look ahead, the need for scalable, sustainable solutions to America’s housing crisis is extremely urgent. Public-private partnerships offer a powerful model for aligning public resources with private innovation to create lasting change. They are not just vehicles for building affordable homes—they are drivers of economic vitality, improved public health, stronger schools and safer neighborhoods. By strengthening these partnerships, we can build a future where every American has access to a stable, affordable place to call home—and where the return on that investment benefits us all.
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