Transcript Slide 1

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the Introduction
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textbook
Nonprofit Housing
Nonprofit housing
 Primarily serve low- & moderate income
households
 Blend corporate, philanthropic, &
government funding

Some government funding is earmarked
for nonprofits
Nonprofit housing
 Produce assisted/subsidized housing:


Income or needs guidelines to live in the
housing
Subsidize builder or resident
 Tend to offer a variety of resident
services as well as develop housing
Nonprofit housing
 Community development corporations

formed by residents, small business
owners, congregations & other local
stakeholders to revitalize a low- and/or
moderate-income community

produce affordable housing, create jobs, &
provide social services in their target area
Nonprofit housing
 Community development corporations

501 (c) (3)
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Generally serve a target area

May be involved in other economic or
community development type activities
Community Housing Partners
Corporation
 Community Housing Partners Corporation (formerly
VMH, Inc.), founded in 1975, is a regional nonprofit
corporation that strengthens communities and helps
improve the lives of very low to moderate income families
by providing affordable housing and related services
through partnerships with the public and private sectors.
 Activities include multifamily development, management
of its 2,500 unit portfolio in 37 rental communities,
homeownership sales and counseling, energy
management services, enterprise lending, at-risk youth
residential treatment, and construction management and
contracting for nonprofits, public housing authorities, and
for-profit developers.
 Current assets exceed $79 million. CHPC has five offices
in Virginia and a branch office in Tallahassee, Florida.
Nonprofit housing
 Area Wide Housing Nonprofit

Large region, or no geographic area

More focused specifically on housing

Housing Partnership Network
AHC, Inc.
 www.ahcinc.org
 Formed in 1975 as the Arlington Housing
Corporation, AHC has since expanded beyond
Arlington County to other parts of the midAtlantic region.
 Preserved or created close to 2,500 rental
apartments and over 900 single-family homes,
owning and operating 19 developments
comprising 1,700 apartments.
 Provides construction and renovation services,
operates its own property management
company, and provides a wide array of resident
services, including homeownership counseling
and downpayment assistance.
Housing Partnership Network
 The mission of the Housing Partnership
Network is to build affordable homes,
better futures, & vibrant communities for
low- and moderate-income people
through partnerships with its member
organizations & businesses,
government, & philanthropic institutions.
Housing Partnership Network
 The Network has jointly developed three
affiliated social enterprises with its
members: the Housing Partnership
Fund, Housing Partnership Ventures &
Housing Partnership Insurance.
 www.housingpartnership.net
Nonprofit housing
 Financial intermediaries

Unique to nonprofit housing

Distinctive characteristic is public-private
partnerships

Revolving loan funds, venture capital, equity
partners & many unique sources of financing
Local Initiatives Support
Corporation
 LISC approaches affordable housing from a
community development perspective that supports
local initiatives. This strategy, which includes
financing, technical assistance & educational
resources to community development corporations,
has resulted in the creation or preservation of more
than 160,000 affordable homes & apartments.
Affordable housing covers a range of issues, from
homeownership to preservation to working with
public housing agencies. LISC runs a variety of
national programs to address those issues.
Local Initiatives Support
Corporation
 Low Income Housing Tax Credits
 Public housing
 Housing preservation
 Vacant properties
 www.lisc.org
Enterprise Community
Partners
 Enterprise is a leading provider of the
development capital and expertise it takes to
create decent, affordable homes & rebuild
communities. For more than two decades,
Enterprise has pioneered neighborhood
solutions through public-private partnerships
with financial institutions, governments,
community organizations & others that share
our vision. Enterprise has raised and invested
$6 billion in equity, grants & loans & is currently
investing in communities at a rate of close to $1
billion a year.
Enterprise Community
Partners
 Creating fit, affordable housing is Enterprise’s main
mission. Enterprise has helped low-income families
either rent or buy 175,000 affordable apartments and
homes. This work represents a $6 billion investment in
communities that benefit from the stability
homeownership & well-designed rental developments
bring to neighborhoods.
 Understanding that housing is the first step to exiting
poverty & entering the mainstream of American life,
Enterprise also supports local efforts to increase the
supply of quality child care, access to employment &
safer streets in many of the communities in which we are
active.
Enterprise Community
Partners
 Green Communities is a five-year, $555 million initiative
to build more than 8,500 environmentally healthy homes
for low-income families. Created by Enterprise in
partnership with the Natural Resources Defense Council,
Green Communities will transform the way America
thinks about, designs, & builds affordable communities.
The initiative provides grants, financing, tax-credit equity,
& technical assistance to developers who meet Green
Communities Criteria for affordable housing that
promotes health, conserves energy & natural resources,
& provides easy access to jobs, schools & services.
 www.enterprisecommunity.org
Living Cities: The National
Community Development Initiative
 Living Cities is an investor collaborative of 15
major financial institutions, foundations &
government agencies committed to the
revitalization of America’s great urban centers.
In partnership with city residents, state & local
governments, & both the commercial and
nonprofit sectors, Living Cities helps create
strategic investment opportunities that result in
better & safer local housing & a more
welcoming environment for business
expansion.
 www.livingcities.org
Housing Counseling
 Homeownership education
 Integrated into the home buying process
 HUD certified agencies
Nonprofit versus Profit
 Nonprofit
 Profit
Community development
Housing focus
Geographic area
Broader market
Many are small & less well
capitalized
Economies of scale
Complex financing
Direct financing
Nonprofit Fact of Life:
 “…no single existing public sector
housing subsidy program provides deep
enough assistance to make housing
affordable for those [the lowest income]
families.”
Challenges for Nonprofit
Housing Organizations
 The supply of low-cost housing cannot
keep up with the demand in the face of
rapidly increasing housing prices without
substantial input of federal, corporate &
philanthropic dollars
Challenges for Nonprofit
Housing Organizations
 Success brings competition

Revitalized neighborhoods bring investors,
new capital – and rising prices

Increasingly sophisticated organizations
means better trained & qualified staff –
who can be lured away to the private
sector
Challenges for Nonprofit
Housing Organizations
 Funding is particularly an issue for:



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Operational costs
Staff training & retention
Community development
Housing management