Commercial Insights

Why efficiency is the key to faster, more affordable housing construction

By centralizing communication, streamlining processes, and working with experienced banking advisors, developers can simplify execution and reduce risk.

Affordable housing developers face no shortage of challenges when it comes to delivering projects on time and on budget. Rising construction costs, tariff-driven price volatility, interest rate fluctuations, supply chain disruptions, and labor shortages all create uncertainty—and most of these factors are beyond a developer’s direct control.

That reality makes the variables developers can control even more critical. Among them, efficiency stands out as one of the most powerful—and often overlooked—drivers of affordable housing construction success.

This insight is especially relevant for affordable housing developers, nonprofit sponsors, and real estate owners navigating complex construction timelines and multi-layered financing structures.

Why is efficiency critical in affordable housing development?

Efficiency helps affordable housing developers offset market volatility by improving coordination, accelerating funding access, and reducing administrative friction throughout the construction process.

Construction projects involve a wide range of essential stakeholders—general contractors, subcontractors, inspectors, material suppliers, title agents, and lenders. While each plays a critical role, limited visibility and misaligned processes can lead to delays, stalled payments, and rising costs.

Creating streamlined workflows, transparent communication, and faster access to capital enables developers to keep projects moving forward—even when external conditions are unpredictable.

How centralized access improves construction draw efficiency

One of the most effective ways to improve efficiency is by centralizing access to project and loan information.

“The goal for any developer working through a construction project is to secure funds as quickly as possible to keep things moving forward, but this can become complicated when working with multiple third parties,” said David Payne, Head of Originations for Regions Affordable Housing, who brings more than 20 years of industry experience. “For developers, working with a bank that leverages technology to automate manual processes and expedite access to capital can provide a significant advantage.”

Through Regions’ centralized digital platform—powered by Built—affordable housing developers can connect with the bank and critical third parties in one shared environment. Developers can view project and loan details in real time, upload invoices and documentation, and submit construction draw requests electronically.

The platform provides instant notifications when key milestones occur, including when draw requests are funded or inspection reports are uploaded. This shared visibility improves alignment across all participants in the construction draw process and reduces the risk of miscommunication or delay.

What this means for developers is centralized, real-time access to data allows teams to move faster, reduce errors, and maintain tighter control of project expenses and construction timelines.

These efficiencies have led to a reduction in average draw funding time of more than 25%, helping developers keep contractors paid and projects on schedule.

The value of a centralized banking relationship

Beyond technology, another major source of efficiency comes from working with a single banking team across the full capital stack.

“With an affordable housing development, there can be a lot of components involved from a financing and capital stack perspective,” Payne said. “There is real value in working with one bank that has the capability to coordinate all these capital needs.”

Regions’ 360-degree approach brings together multiple specialized teams to support affordable housing projects, including:

• Construction debt
• Permanent debt through Regions’ Real Estate Capital Markets agency platform
• Affordable housing equity generated by the Low-Income Housing Tax Credit through Regions Affordable Housing  and fund investors
• Bond trustee services through Regions Institutional Services Group 

By coordinating these elements through one institution, developers benefit from fewer handoffs, better alignment, and a more seamless financing experience.

How a 360 approach streamlines the closing process

The closing process is another area where efficiency gains can have a meaningful impact on project delivery.

“The closing process can often involve working with multiple banks, syndicators, agency lenders, and bond trustees, all of whom may not be affiliated with each other,” Payne noted. “Our 360 approach at Regions connects those dots and provides for a more streamlined process.”

For developers, this coordination reduces time spent managing multiple counterparties and helps minimize delays that can push back construction start dates.

The bottom line

As Payne summarized, “Affordable housing construction projects are complicated enough as they are. Working with experienced banking advisors that can help simplify the process and reduce the administrative load can make a big difference in staying on time and on budget.”

Key takeaways for affordable housing developers

• Efficiency is one of the few variables developers can directly control amid industry volatility.
• Centralized digital platforms improve visibility, collaboration, and construction draw speed.
• Real-time access to project data reduces delays and administrative burden.
• Working with one bank across the capital stack simplifies closings and improves timeline certainty.
• Faster access to funding helps keep projects on time and on budget.

Ready to help

Regions is a national leader in affordable housing, offering developer clients competitive debt and equity solutions along with a full-service banking relationship. We offer our investor clients customized equity investments, tailored to individual investment requirements and needs. Our originations, underwriting and asset management services cover the full project life cycle, with a consistent team approach. Connect with us.