Our model combines a Housing Trust and a non-profit development corporation to finance, build and market multi-unit, multi-family housing where, for example, one half of the homes will be sold at full market and the other half will be sold under a restrictive covenant (a covenanted deed) for up to 50% off the market price. Another way to execute this model is to sell the all the units at 75% of the full market price under a covenanted deed with the remaining 25% being held by the trust.
To sell outside the covenant triggers a penalty greater than the benefit, thus ensuring an increasing stock of affordable homeownership and rental units in the region.
The objective is to build our way out of the housing crisis by creating a financial and development model that can be used by other non-profit housing providers and housing trusts throughout British Columbia and Canada to solve the housing crisis. We have created a number of investment opportunities for concerned citizens and pro-active corporations to join with us in “Building Solutions to the Housing Crisis.”
Finance charges on a large project can add up to 10-15% or more of the total development cost.
So here is the question: Would you invest in a community Housing Trust where your investment was secured against land and property but take that interest as a charitable tax receipt to help solve the housing crisis? (If you want to invest now please click the button below or if you are a company click here.
Our financial model shows that if we can reduce our development costs by 20% we can deliver on our goal of selling one-half of our units at up to 50% below market (under a covenanted deed) thus ensuring a perpetual supply of affordable housing in the region.
Generally there is between ten and fifteen percent profit in a development project so if we can sell half of the homes at market pricing then we can apply that profit to deliver affordability. Add to that our reduced capital costs through our innovative investment program and we are almost home – just a few percentage points away.
For corporations the ‘i Invest In Housing’ program marketing program can be used as part of a company’s Corporate Social Responsibility strategy. Concerned corporate citizens can pro-actively help us address one of the most crucial social issues facing our city and region – the lack of affordable housing. Early adopters will benefit from the media attention and public good will that this “Cost Recovery” advertising and marketing model will generate as we begin “Building Solutions to the Housing Crisis.” For more information please contact us.