Safehold Expanded Ground Lease Model for Housing
The firm extended its ground lease platform to support affordable housing projects across the United States.
Updated on Oct. 5, 2026 in Apartments
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Since launching a dedicated platform in 2025, Safehold has utilized 99-year ground leases to provide capital for affordable housing developments. This model has expanded into new markets, including Texas, to address financing gaps.
Why it matters
Elevated interest rates and high development costs have created significant financing hurdles for affordable housing projects. Ground leases allow developers to access capital at a lower cost than conventional debt, potentially increasing project proceeds by 10 to 20 percent.
Safehold has funded $7 billion in total ground lease capital across 172 transactions. These agreements, which include 25 deals for California LIHTC developments, aim to boost project proceeds by 10 to 20 percent for 4 percent LIHTC projects.
The players
Safehold
A financial services firm that provides 99-year ground lease capital to help developers lower financing costs for housing projects.
Steve Wylder
A representative for Safehold who discussed the company's platform expansion during a September 2026 interview.
The details
Safehold provides 99-year ground leases that feature fixed rent increases and no fair-market resets, distinguishing them from traditional land lease structures. By separating land ownership from the building, developers can secure financing at a premium to land value. This mechanism offers a cost-effective alternative to conventional debt, helping to stabilize budgets for long-term affordable housing projects.
Timeline
Safehold launched its dedicated affordable housing platform in 2025.
The company closed its first three Texas LIHTC transactions in 2026.
Money Landscape
The expansion follows the industry trend of leveraging the Low-Income Housing Tax Credit to increase capital for development. Safehold's ground lease model serves as a supplemental financing tool designed to optimize the capital structure of projects utilizing the LIHTC framework.
For households in communities with LIHTC developments, this financing model may help facilitate the construction or preservation of units by lowering costs for developers. If you are involved in housing development or policy, consult a qualified professional to understand how ground leases affect project feasibility.
The takeaway
Ground leases are becoming a more prominent tool for bridging financing gaps in the affordable housing sector by offering fixed, long-term costs. Keep an eye on local housing authority meeting minutes to see if ground lease structures are being proposed for new developments in your area.
Further reading
For more on market trends, visit our Apartments section.
Source note: This article includes information reported by Commercial Observer.
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