Multifamily Impact Council Interview with Kevin Smith
ROCKVILLE, MD- March 5, 2025- Kevin Smith is Chief Investment Officer at The Donaldson Group, a full-service real estate management firm, and Co-Founder and Managing Partner at Donaldson Impact Investments, which acquires multifamily assets and partners with a select group of impact investors to preserve and enhance critically needed naturally occurring affordable housing.
Purchasing market-rate multifamily communities and converting at least some of the units to affordable housing has been an effective way to increase the supply of budget-friendly apartment homes in many markets. What is your take on this practice?
We are facing an escalating affordability crisis. We believe that converting existing communities is a very effective means to provide critically needed affordable housing faster than development and make an immediate impact. In addition to converting these assets, we plan to offer onsite resident assistance and resident services to all residents within these communities.
Can you tell us more about how your company is participating in this trend?
We recently closed on a 312-unit market-rate community in Maryland. Our mission-aligned partnership attracted private market equity and leveraged public policy incentives. At this property we worked closely with local government to secure a tax exemption in part by agreeing to cap 55% of the units at affordable rent levels.
Where do you see the trend of converting market rate communities to affordable housing heading over the next several years?
We hope this trend will continue to grow over time. This can be accomplished anywhere in the country where the local government is willing to work with and assist potential investors in this endeavor.
Anything else to add?
The majority of multifamily housing in the United States is 30 years or older and would be considered workforce housing. These assets are prime candidates for a partial or full conversion to affordable housing. At Donaldson, we are bringing together the right tools and expertise to implement innovative solutions that prioritize affordability, equity and inclusion for the communities we serve.
