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Companion PowerPoint Presentation for the Introduction to Housing 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)

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 mid-Atlantic 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

Community development

Geographic area

Many are small & less well capitalized

Complex financing

Profit

Housing focus

Broader market

Economies of scale

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:

Operational costs Staff training & retention Community development Housing management