Jamee Rogers

Amount Appropriated?

$4.0M

FFID tracks stages 1–2 — stages 3–5 vary by agency, assistance type, and earmark structure.

Project Description

This Pilot project provides 100 quality, affordable homes in underserved communities under a financing structure that promotes resident wealth accumulation through ultimate homeownership. This is accomplished by connecting philanthropic energy, knowledge and capital with the resources and creativity of \u201cfor profit\u201d private development to address the affordable housing crisis in an innovative and scalable way. Residents with existing ties to the community will be able to rent these high-quality homes at affordable rates. During their rental period, they will accumulate a cash balance in an escrow fund to either be paid out upon moving out of the home or doubled if applied toward the down payment of purchasing the home. The homes will be available for sale to the residents 6-8 years after completion and will be sold at below market rates to ensure affordability of the residents\u2019 monthly mortgage payments. This, along with the matched escrow funds, provide equity in the home on day 1 of home ownership. In addition to accruing a down payment during the rental period, the residents will also be provided the opportunity to take advantage of relevant support services, which could range from financial literacy programs, childcare services, transportation services and healthcare services among others. We believe the 6-8 year tenancy period in conjunction with working with the city to ensure neighboring homes do not see real estate tax increases caused by these new homes, will avoid displacement of legacy residents and will provide equity to those currently in the neighborhoods. When the homes are sold to the residents, there is no profit returned to any members of the capital stack. All lift from the project remains in the community and inures to either the resident or provides funding for the next tranche of new homes.