NC Investment Map

Preservation via Acquisition by Mission-Driven Organizations

Create a fund that enables mission-driven (ideally BIPOC-led) organizations, such as non-profits and healthcare systems, to buy properties and keep them affordable via multiple pathways

PRESERVE EXISTING AFFORDABLE HOUSING

Preservation via Acquisition by Mission-Driven Organizations

Create a “social impact fund” local non-profit organizations (prioritizing BIPOC-led organizations) and healthcare systems can use to buy multi-family homes and apartments that need work or are in less desirable locations (and therefore more economical to purchase), as well as individual, affordable homes located throughout the community. Ownership by nonprofits will protect the homes from gentrification and redevelopment so they remain affordable. Funds should focus on preserving existing housing (rather than new development) with an emphasis on enabling BIPOC communities to participate in ownership through strategies such as limited equity cooperatives and community land trusts:

Instead of creating a social impact fund, investors can also engage an existing fund operating in another region/state but wants to expand into NC.

  • An example of a Limited Equity Collaborative is East Bay Permanent Real Estate Cooperative, which is structured to maximize community benefits and resident wealth building
  • An example of a community land trust is the Asheville-Buncombe Community Land Trust, which “creates permanently affordable housing by reducing the affordability gap and increasing homeownership opportunities for low-income buyers”

 

This promising strategy requires investment in:

  • Creation of a social impact fund to provide capital to purchase expiring affordable housing units
  • Capacity-building for local organizations to support property purchase
  • Creation of a social impact fund to provide capital to purchase expiring affordable housing units
  • Capacity-building for local organizations to support property purchase

Evaluation of Promising Strategy in Initial Target Regions

Learn more about the Investment Map’s selection of Initial Target Regions.

Community Housing Solutions in Greensboro acquires vacant, abandoned, and foreclosed homes to rehab and sell to first-time, low-income homebuyers.

There are not enough non-profit housing developers in certain parts of the region and limited pools of social impact capital.

Real estate developers are buying Naturally Occurring Affordable Housing (NOAH) in cities experiencing rapid growth (e.g., Greensboro). They are renovating these properties and raising the rent, which is eliminating affordable housing stock for lower-income households.

  • Social impact funds with below-market returns created. Metric = # funds created.
  • Capital raised is commensurate with need. Metric = $ raised for each fund vs. $ used by each fund vs. $ requested from each fund.
  • Affordable housing units are protected. Metric = # of acquisitions made. Metric = # of acquisitions made vs. expiring affordable housing units.
  • BIPOC-led organizations are engaged. Metric: # of BIPOC-led organizations using fund dollars. Metric = # of acquisitions conducted by BIPOC-led organizations.
  • Diverse low-income communities are able to participate in homeownership. Metric = # of residents that participate in ownership. Metric = # of BIPOC residents that participate in ownership.

Asheville-Buncombe Community Land Trust (ABCLT) exists to provide permanent, affordable homeownership opportunities for low-income individuals and families in Asheville and Buncombe Counties. Asheville City Council has committed $1 million to the trust.

Haywood Street Community Development is committed to developing affordable housing connected to the Haywood St. Ministries in Asheville.

There are not enough non-profit housing developers in certain areas, as well as limited pools of social impact capital.

Real estate developers are buying Naturally Occurring Affordable Housing (NOAH) in cities experiencing rapid growth (e.g., Asheville). They are renovating these properties and raising the rent, which is eliminating housing stock for people from lower-income households.

  • Social impact funds with below-market returns created. Metric = # funds created.
  • Capital raised is commensurate with need. Metric = $ raised for each fund vs. $ used by each fund vs. $ requested from each fund.
  • Affordable housing units are protected. Metric = # of acquisitions made. Metric = # of acquisitions made vs. expiring affordable housing units.
  • BIPOC-led organizations are engaged. Metric: # of BIPOC-led organizations using fund dollars. Metric = # of acquisitions conducted by BIPOC-led organizations.
  • Diverse low-income communities are able to participate in homeownership. Metric = # of residents that participate in ownership. Metric = # of BIPOC residents that participate in ownership.

HOUSING PROMISING STRATEGIES

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