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"custom_t_title":"Housing Partnership Equity Trust Launches With $100 Million In Funding For Affordable Multifamily Housing",
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"custom_t_content":"\r\n\tIn a pioneering new approach to acquiring safe, decent and affordable housing, the newly formed Housing Partnership Equity Trust today announced it has raised $100 million from Citi, Morgan Stanley, Prudential Financial, Inc., the MacArthur Foundation, and the Ford Foundation, and has begun investing in multifamily properties in partnership with 12 high-performing nonprofit housing providers across the country.
\r\n\r\n\tThe Housing Partnership Equity Trust (HPET) was formed as a social-purpose real estate investment trust, or REIT, sponsored and operated by the Housing Partnership Network, a business collaborative of the nation's leading housing and community development nonprofits. HPET will provide a ready source of long-term, low-cost capital, enabling these 12 mission-driven nonprofits to quickly and efficiently acquire apartment buildings that provide quality homes for families, seniors and others with modest incomes.
\r\n\r\n\tIn its first transaction, which closes today, HPET funds will enable Mercy Housing Lakefront to acquire and rehabilitate a 128-unit property in Aurora, Illinois, thus preserving critical affordable housing without dependence on Low-Income Housing Tax Credits or other public subsidies.
\r\n\r\n\t"The Housing Partnership Equity Trust demonstrates a new approach to funding affordable housing—one that will streamline the capital-raising process for acquiring affordable housing units and sharply reduce transaction costs as well as the time it takes to close on a transaction," said Drew Ades, Chief Executive Officer of HPET. "As evidenced by the speed and efficiency with which Mercy Housing Lakefront was able to acquire its new property in Aurora, the savings we create will translate into more affordable rents for the residents, greater financial sustainability for our nonprofit partners, and attractive, stable returns for investors. Over the next several months, we will raise additional funds to further expand our scale and impact."
\r\n\r\n\t"Even as the weak economy put downward pressure on the incomes of the working class and working poor, private investors in real estate, seeking double-digit returns, have either raised rents or cut back on capital investments in their properties," said Cynthia A. Parker, Chair of HPET's Board and President and CEO of BRIDGE Housing, which operates affordable properties throughout the West Coast and is one of HPET's 12 nonprofit partners. "Too many affordable properties are being lost due either to gentrification or neglect. By providing a ready source of funds, enabling BRIDGE and similar organizations to acquire properties, HPET is the answer that so many community development organizations have been looking for to address the pressing need to preserve and improve our existing stock of affordable rental housing."
\r\n\r\n\t"HPET represents a fundamental shift in both the way affordable housing is financed, and the way nonprofit real estate operators build their balance sheet and their capacity to expand their mission," said Ommeed Sathe, Vice President, Social Investments, Community Resources, Prudential Financial, Inc. "We view the creation of HPET as an important initial step in modernizing the financing structure for affordable housing, by aligning incentives through which investors get a steady return, while stabilizing the stock of affordable units."
\r\n\r\n\t"Mercy Housing Lakefront's acquisition of its new property in Aurora is a perfect example of what HPET was created to do," said Drew Ades. "The underwriting and return structure of HPET enabled Mercy Housing Lakefront to make a competitive bid, perform a thorough due diligence process, and ultimately close on the transaction in far less time than is typical of a transaction that would be dependent upon Low-Income Housing Tax Credits. By placing this property in the hands of a motivated and mission-driven nonprofit, whose interests in preserving the property is aligned with the tenants who live there, we are able to make an investment with an adequate return, cure significant deferred maintenance, improve energy efficiency, and extend the useful life of the property."
\r\n\r\n\tTypically, multifamily affordable housing transactions depend upon project-specific subsidies and investments from a wide range of tax credit and subsidy programs. Successful nonprofits become highly skilled at assembling resources from governments at the local, state, and federal level, and negotiating project-based financing agreements with multiple private financial institutions and investors. This approach maintains a strong focus on the performance of individual properties but makes it exceedingly difficult to quickly acquire properties, efficiently manage operations, raise capital, fuel growth, and spur innovation.
\r\n\r\n\t"HPET provides a unique approach to financing the acquisition of affordable housing," said Andrew Ditton, Co-Head of Citi Community Capital. "Since properties acquired through HPET generally will not rely on property-level subsidies, the nonprofit operator has the ability to build cash and liquidity through efficient operations, better aligning incentives and allowing nonprofits to increase their capacity, and provide an alternative investment channel to social-impact investors. Citi is proud to be part of this initiative."
\r\n\r\n\tAcquisitions funded by HPET will target properties with access to public transportation and other community amenities. Capital improvements will be made to lower operating costs and utility expenses.
\r\n\r\n\t"The Ford Foundation is proud to have helped launch HPET," said Lisa Davis, Program Officer, Ford Foundation. "We believe that it creates an important new mechanism to increase equitable access to safe, affordable housing, which, together with efficient transportation, and good jobs is fundamental to building prosperous metropolitan areas."
\r\n\r\n\t"Using philanthropic dollars to unlock private capital is a powerful way to creatively achieve impact at a meaningful scale," said Debra Schwartz, Director of Program-Related Investments at the MacArthur Foundation, in describing the critical role of "program-related investments" by HPET's two foundation investors. "By design, HPET makes it easy for mainstream investors to put large amounts of capital to work while dramatically improving the ability of leading nonprofits to increase their impact in communities across the nation."
\r\n\r\n\tThe 12 nonprofit members of HPET are: AHC Housing, Inc.; BRIDGE Housing Corporation; Chicanos Por La Causa; Community Development and Preservation Corporation; Eden Housing, Inc.; Hispanic Housing Development Corporation; Homes for America, Inc.; LINC Housing Corporation; Mercy Housing; Nevada HAND, Inc.; NHP Foundation; and NHT/Enterprise.
\r\n\r\n\tABOUT THE HOUSING PARTNERSHIP EQUITY TRUST (HPET)
\r\n\tThe Housing Partnership Equity Trust was formed as a social-purpose REIT sponsored and operated by the Housing Partnership Network, a business collaborative of the nation's leading housing and community development nonprofits. HPET provides a ready source of long-term, low-cost capital, enabling the 12 mission-driven nonprofits it partners with to quickly and efficiently acquire apartment buildings that provide quality homes for families, seniors and others with modest incomes.
\r\n\r\n\tABOUT THE HOUSING PARTNERSHIP NETWORK (HPN)
\r\n\tThe Housing Partnership Network is an award-winning business collaborative of 100 of the nation's most successful affordable housing and community development nonprofits. Creating private sector partnerships and enterprises that achieve ambitious social missions, HPN and its members work together to scale innovation and impact, helping millions of people gain access to affordable homes and thriving communities that offer economic opportunity and an enhanced quality of life. In 2013, HPN was selected to receive the 2013 MacArthur Foundation Award for Creative and Effective Institutions, in recognition of its ongoing leadership and innovation in affordable housing.
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"content":"Housing Partnership Equity Trust Launches With $100 Million In Funding For Affordable Multifamily Housing \n \n April 29, 2013 \n | \n Press Release \n | \n Preserving Affordable Rental Housing, Housing \n \n \n \n \n \n \n \n \n \n Share On Social \n \n \n \n \n \n \n \n\r\n\tIn a pioneering new approach to acquiring safe, decent and affordable housing, the newly formed Housing Partnership Equity Trust today announced it has raised $100 million from Citi, Morgan Stanley, Prudential Financial, Inc., the MacArthur Foundation, and the Ford Foundation, and has begun investing in multifamily properties in partnership with 12 high-performing nonprofit housing providers across the country. \r\n\n\r\n\tThe Housing Partnership Equity Trust (HPET) was formed as a social-purpose real estate investment trust, or REIT, sponsored and operated by the Housing Partnership Network , a business collaborative of the nation's leading housing and community development nonprofits. HPET will provide a ready source of long-term, low-cost capital, enabling these 12 mission-driven nonprofits to quickly and efficiently acquire apartment buildings that provide quality homes for families, seniors and others with modest incomes. \r\n\n\r\n\tIn its first transaction, which closes today, HPET funds will enable Mercy Housing Lakefront to acquire and rehabilitate a 128-unit property in Aurora, Illinois, thus preserving critical affordable housing without dependence on Low-Income Housing Tax Credits or other public subsidies. \r\n\n\r\n\t\"The Housing Partnership Equity Trust demonstrates a new approach to funding affordable housing—one that will streamline the capital-raising process for acquiring affordable housing units and sharply reduce transaction costs as well as the time it takes to close on a transaction,\" said Drew Ades, Chief Executive Officer of HPET. \"As evidenced by the speed and efficiency with which Mercy Housing Lakefront was able to acquire its new property in Aurora, the savings we create will translate into more affordable rents for the residents, greater financial sustainability for our nonprofit partners, and attractive, stable returns for investors. Over the next several months, we will raise additional funds to further expand our scale and impact.\" \r\n\n\r\n\t\"Even as the weak economy put downward pressure on the incomes of the working class and working poor, private investors in real estate, seeking double-digit returns, have either raised rents or cut back on capital investments in their properties,\" said Cynthia A. Parker, Chair of HPET's Board and President and CEO of BRIDGE Housing, which operates affordable properties throughout the West Coast and is one of HPET's 12 nonprofit partners. \"Too many affordable properties are being lost due either to gentrification or neglect. By providing a ready source of funds, enabling BRIDGE and similar organizations to acquire properties, HPET is the answer that so many community development organizations have been looking for to address the pressing need to preserve and improve our existing stock of affordable rental housing.\" \r\n\n\r\n\t\"HPET represents a fundamental shift in both the way affordable housing is financed, and the way nonprofit real estate operators build their balance sheet and their capacity to expand their mission,\" said Ommeed Sathe, Vice President, Social Investments, Community Resources, Prudential Financial, Inc. \"We view the creation of HPET as an important initial step in modernizing the financing structure for affordable housing, by aligning incentives through which investors get a steady return, while stabilizing the stock of affordable units.\" \r\n\n\r\n\t\"Mercy Housing Lakefront's acquisition of its new property in Aurora is a perfect example of what HPET was created to do,\" said Drew Ades. \"The underwriting and return structure of HPET enabled Mercy Housing Lakefront to make a competitive bid, perform a thorough due diligence process, and ultimately close on the transaction in far less time than is typical of a transaction that would be dependent upon Low-Income Housing Tax Credits. By placing this property in the hands of a motivated and mission-driven nonprofit, whose interests in preserving the property is aligned with the tenants who live there, we are able to make an investment with an adequate return, cure significant deferred maintenance, improve energy efficiency, and extend the useful life of the property.\" \r\n\n\r\n\tTypically, multifamily affordable housing transactions depend upon project-specific subsidies and investments from a wide range of tax credit and subsidy programs. Successful nonprofits become highly skilled at assembling resources from governments at the local, state, and federal level, and negotiating project-based financing agreements with multiple private financial institutions and investors. This approach maintains a strong focus on the performance of individual properties but makes it exceedingly difficult to quickly acquire properties, efficiently manage operations, raise capital, fuel growth, and spur innovation. \r\n\n\r\n\t\"HPET provides a unique approach to financing the acquisition of affordable housing,\" said Andrew Ditton, Co-Head of Citi Community Capital. \"Since properties acquired through HPET generally will not rely on property-level subsidies, the nonprofit operator has the ability to build cash and liquidity through efficient operations, better aligning incentives and allowing nonprofits to increase their capacity, and provide an alternative investment channel to social-impact investors. Citi is proud to be part of this initiative.\" \r\n\n\r\n\tAcquisitions funded by HPET will target properties with access to public transportation and other community amenities. Capital improvements will be made to lower operating costs and utility expenses. \r\n\n\r\n\t\"The Ford Foundation is proud to have helped launch HPET,\" said Lisa Davis, Program Officer, Ford Foundation. \"We believe that it creates an important new mechanism to increase equitable access to safe, affordable housing, which, together with efficient transportation, and good jobs is fundamental to building prosperous metropolitan areas.\" \r\n\n\r\n\t\"Using philanthropic dollars to unlock private capital is a powerful way to creatively achieve impact at a meaningful scale,\" said Debra Schwartz, Director of Program-Related Investments at the MacArthur Foundation, in describing the critical role of \"program-related investments\" by HPET's two foundation investors. \"By design, HPET makes it easy for mainstream investors to put large amounts of capital to work while dramatically improving the ability of leading nonprofits to increase their impact in communities across the nation.\" \r\n\n\r\n\tThe 12 nonprofit members of HPET are: AHC Housing, Inc. ; BRIDGE Housing Corporation ; Chicanos Por La Causa ; Community Development and Preservation Corporation ; Eden Housing, Inc. ; Hispanic Housing Development Corporation ; Homes for America, Inc. ; LINC Housing Corporation ; Mercy Housing ; Nevada HAND, Inc. ; NHP Foundation ; and NHT/Enterprise . \r\n\n\r\n\tABOUT THE HOUSING PARTNERSHIP EQUITY TRUST (HPET)\n\r\n\tThe Housing Partnership Equity Trust was formed as a social-purpose REIT sponsored and operated by the Housing Partnership Network , a business collaborative of the nation's leading housing and community development nonprofits. HPET provides a ready source of long-term, low-cost capital, enabling the 12 mission-driven nonprofits it partners with to quickly and efficiently acquire apartment buildings that provide quality homes for families, seniors and others with modest incomes. \r\n\n\r\n\tABOUT THE HOUSING PARTNERSHIP NETWORK (HPN)\n\r\n\tThe Housing Partnership Network is an award-winning business collaborative of 100 of the nation's most successful affordable housing and community development nonprofits. Creating private sector partnerships and enterprises that achieve ambitious social missions, HPN and its members work together to scale innovation and impact, helping millions of people gain access to affordable homes and thriving communities that offer economic opportunity and an enhanced quality of life. In 2013, HPN was selected to receive the 2013 MacArthur Foundation Award for Creative and Effective Institutions, in recognition of its ongoing leadership and innovation in affordable housing. \r\n \n \n \n \n \n \n \n Related Grantees \n Housing Partnership Equity Trust , Housing Partnership Network , Mercy Housing , NHP Foundation \n \n \n \n More news on Preserving Affordable Rental Housing \n \n \n \n \n \n \n View More About Preserving Affordable Rental Housing",
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"content_en":"Housing Partnership Equity Trust Launches With $100 Million In Funding For Affordable Multifamily Housing \n \n April 29, 2013 \n | \n Press Release \n | \n Preserving Affordable Rental Housing, Housing \n \n \n \n \n \n \n \n \n \n Share On Social \n \n \n \n \n \n \n \n\r\n\tIn a pioneering new approach to acquiring safe, decent and affordable housing, the newly formed Housing Partnership Equity Trust today announced it has raised $100 million from Citi, Morgan Stanley, Prudential Financial, Inc., the MacArthur Foundation, and the Ford Foundation, and has begun investing in multifamily properties in partnership with 12 high-performing nonprofit housing providers across the country. \r\n\n\r\n\tThe Housing Partnership Equity Trust (HPET) was formed as a social-purpose real estate investment trust, or REIT, sponsored and operated by the Housing Partnership Network , a business collaborative of the nation's leading housing and community development nonprofits. HPET will provide a ready source of long-term, low-cost capital, enabling these 12 mission-driven nonprofits to quickly and efficiently acquire apartment buildings that provide quality homes for families, seniors and others with modest incomes. \r\n\n\r\n\tIn its first transaction, which closes today, HPET funds will enable Mercy Housing Lakefront to acquire and rehabilitate a 128-unit property in Aurora, Illinois, thus preserving critical affordable housing without dependence on Low-Income Housing Tax Credits or other public subsidies. \r\n\n\r\n\t\"The Housing Partnership Equity Trust demonstrates a new approach to funding affordable housing—one that will streamline the capital-raising process for acquiring affordable housing units and sharply reduce transaction costs as well as the time it takes to close on a transaction,\" said Drew Ades, Chief Executive Officer of HPET. \"As evidenced by the speed and efficiency with which Mercy Housing Lakefront was able to acquire its new property in Aurora, the savings we create will translate into more affordable rents for the residents, greater financial sustainability for our nonprofit partners, and attractive, stable returns for investors. Over the next several months, we will raise additional funds to further expand our scale and impact.\" \r\n\n\r\n\t\"Even as the weak economy put downward pressure on the incomes of the working class and working poor, private investors in real estate, seeking double-digit returns, have either raised rents or cut back on capital investments in their properties,\" said Cynthia A. Parker, Chair of HPET's Board and President and CEO of BRIDGE Housing, which operates affordable properties throughout the West Coast and is one of HPET's 12 nonprofit partners. \"Too many affordable properties are being lost due either to gentrification or neglect. By providing a ready source of funds, enabling BRIDGE and similar organizations to acquire properties, HPET is the answer that so many community development organizations have been looking for to address the pressing need to preserve and improve our existing stock of affordable rental housing.\" \r\n\n\r\n\t\"HPET represents a fundamental shift in both the way affordable housing is financed, and the way nonprofit real estate operators build their balance sheet and their capacity to expand their mission,\" said Ommeed Sathe, Vice President, Social Investments, Community Resources, Prudential Financial, Inc. \"We view the creation of HPET as an important initial step in modernizing the financing structure for affordable housing, by aligning incentives through which investors get a steady return, while stabilizing the stock of affordable units.\" \r\n\n\r\n\t\"Mercy Housing Lakefront's acquisition of its new property in Aurora is a perfect example of what HPET was created to do,\" said Drew Ades. \"The underwriting and return structure of HPET enabled Mercy Housing Lakefront to make a competitive bid, perform a thorough due diligence process, and ultimately close on the transaction in far less time than is typical of a transaction that would be dependent upon Low-Income Housing Tax Credits. By placing this property in the hands of a motivated and mission-driven nonprofit, whose interests in preserving the property is aligned with the tenants who live there, we are able to make an investment with an adequate return, cure significant deferred maintenance, improve energy efficiency, and extend the useful life of the property.\" \r\n\n\r\n\tTypically, multifamily affordable housing transactions depend upon project-specific subsidies and investments from a wide range of tax credit and subsidy programs. Successful nonprofits become highly skilled at assembling resources from governments at the local, state, and federal level, and negotiating project-based financing agreements with multiple private financial institutions and investors. This approach maintains a strong focus on the performance of individual properties but makes it exceedingly difficult to quickly acquire properties, efficiently manage operations, raise capital, fuel growth, and spur innovation. \r\n\n\r\n\t\"HPET provides a unique approach to financing the acquisition of affordable housing,\" said Andrew Ditton, Co-Head of Citi Community Capital. \"Since properties acquired through HPET generally will not rely on property-level subsidies, the nonprofit operator has the ability to build cash and liquidity through efficient operations, better aligning incentives and allowing nonprofits to increase their capacity, and provide an alternative investment channel to social-impact investors. Citi is proud to be part of this initiative.\" \r\n\n\r\n\tAcquisitions funded by HPET will target properties with access to public transportation and other community amenities. Capital improvements will be made to lower operating costs and utility expenses. \r\n\n\r\n\t\"The Ford Foundation is proud to have helped launch HPET,\" said Lisa Davis, Program Officer, Ford Foundation. \"We believe that it creates an important new mechanism to increase equitable access to safe, affordable housing, which, together with efficient transportation, and good jobs is fundamental to building prosperous metropolitan areas.\" \r\n\n\r\n\t\"Using philanthropic dollars to unlock private capital is a powerful way to creatively achieve impact at a meaningful scale,\" said Debra Schwartz, Director of Program-Related Investments at the MacArthur Foundation, in describing the critical role of \"program-related investments\" by HPET's two foundation investors. \"By design, HPET makes it easy for mainstream investors to put large amounts of capital to work while dramatically improving the ability of leading nonprofits to increase their impact in communities across the nation.\" \r\n\n\r\n\tThe 12 nonprofit members of HPET are: AHC Housing, Inc. ; BRIDGE Housing Corporation ; Chicanos Por La Causa ; Community Development and Preservation Corporation ; Eden Housing, Inc. ; Hispanic Housing Development Corporation ; Homes for America, Inc. ; LINC Housing Corporation ; Mercy Housing ; Nevada HAND, Inc. ; NHP Foundation ; and NHT/Enterprise . \r\n\n\r\n\tABOUT THE HOUSING PARTNERSHIP EQUITY TRUST (HPET)\n\r\n\tThe Housing Partnership Equity Trust was formed as a social-purpose REIT sponsored and operated by the Housing Partnership Network , a business collaborative of the nation's leading housing and community development nonprofits. HPET provides a ready source of long-term, low-cost capital, enabling the 12 mission-driven nonprofits it partners with to quickly and efficiently acquire apartment buildings that provide quality homes for families, seniors and others with modest incomes. \r\n\n\r\n\tABOUT THE HOUSING PARTNERSHIP NETWORK (HPN)\n\r\n\tThe Housing Partnership Network is an award-winning business collaborative of 100 of the nation's most successful affordable housing and community development nonprofits. Creating private sector partnerships and enterprises that achieve ambitious social missions, HPN and its members work together to scale innovation and impact, helping millions of people gain access to affordable homes and thriving communities that offer economic opportunity and an enhanced quality of life. In 2013, HPN was selected to receive the 2013 MacArthur Foundation Award for Creative and Effective Institutions, in recognition of its ongoing leadership and innovation in affordable housing. \r\n \n \n \n \n \n \n \n Related Grantees \n Housing Partnership Equity Trust , Housing Partnership Network , Mercy Housing , NHP Foundation \n \n \n \n More news on Preserving Affordable Rental Housing \n \n \n \n \n \n \n View More About Preserving Affordable Rental Housing",
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"custom_t_short_description":"An innovative partnership to finance the preservation of federally-subsidized rental housing in underserved markets brings together major financial institutions, philanthropy, and the federal government. ",
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"custom_t_content":"\r\n\tAn innovative partnership to finance the preservation of federally-subsidized rental housing in underserved markets brings together major financial institutions, philanthropy, and the federal government.
\r\n\r\n\tMacArthur, which is providing a $20 million guaranty in connection with this new effort, aims to attract $100 million for non-profit developers working to preserve and renovate approximately 20 rental properties nationwide serving more than 2,000 low-income residents. Projects already slated to move ahead include renovations of affordable rental housing for low-income families and seniors in Minneapolis, Oklahoma City, Omaha, and Toledo.
\r\n\r\n\t"Our nation's need for affordable rental housing has never been greater and continues to grow," said Debra Schwartz, MacArthur's Director of Program-Related Investments. "This innovative approach, which brings together major financial institutions, philanthropy, and the federal government, shows that we can mobilize the capital needed to save thousands of at-risk affordable rental homes, even in difficult economic times. Much more needs to be done but this model offers one creative way forward."
\r\n\r\n\tAs part of the public-private partnership, The National Affordable Housing Trust (NAHT) and Cornerstone Real Estate Advisers LLC jointly closed an investment fund through the federal Low-Income Housing Tax Credit, a program that provides incentives for private investment in developments serving low-income renters. Investors in the fund include JPMorgan Chase, Massachusetts Mutual Life Insurance Company, MetLife, and United Bank. NAHT and Cornerstone will jointly manage the fund.
\r\n\r\n\t"This fund is an example of how public and private organizations working together creatively can engineer socially responsible investments that work for everyone involved, most notably the residents of the affordable housing that this fund will help preserve," said David J. Reilly, Cornerstone's president and CEO.
\r\n\r\n\tSince its creation in 1986, the Low-Income Housing Tax Credit has been the nation's primary source of low-cost capital for the development and preservation of affordable rental housing. However, in the wake of the recent financial crisis, participation in the program declined sharply. While the market for Low-Income Housing Tax Credits has begun to rebound, investors are focused disproportionately on major markets and new construction projects, causing many rental preservation projects to stall, especially in smaller and rural communities.
\r\n\r\n\tThe new fund widened the range of rental housing projects that mainstream investors will support. MacArthur's financial support addressed investor concerns regarding construction and lease-up risks as well as the funding of certain federal subsidy programs. Additionally, capital for the projects was attracted to Cornerstone's innovative two-tier structure, which provides additional collateral coverage for the senior investors.
\r\n\r\n\tThe fund will support nonprofit housing developers acquiring and renovating hundreds of existing, affordable rental homes in five states, including:
\r\n\r\n\t- \r\n\t\tNicollet Towers, a landmark building in Minneapolis occupied by more than 300 low-income families and seniors, will be renovated by Volunteers of America. The overhaul will incorporate many new energy-efficient features, including re-facing of the façade. A groundbreaking event is scheduled for December 15.
\r\n\t\t \r\n\t- \r\n\t\t
\r\n\t- \r\n\t\tSouthwoods Apartments, a 100-unit affordable rental property in Oklahoma City, will be renovated and managed by Volunteers of America. In addition to energy efficiency upgrades, a new wireless emergency call system will be installed to enhance the health and safety of the building's elderly residents.
\r\n\t- \r\n\t\t
\r\n\t- \r\n\t\tMillard Manor, an outdated but fully occupied rental property in Omaha will be significantly expanded to provide more suitable homes for its low-income senior citizen residents. The project is being renovated and managed by Good Samaritan Society.
\r\n\t- \r\n\t\tRenaissance Senior Apartments is a 100 year-old property in downtown Toledo, adjacent to the famous Valentine Theater. National Church Residences will fully renovate and manage the property's 53 rental apartments. A groundbreaking event is scheduled for December 14.
\r\n
\r\n\r\n\tOther properties to be renovated in this initial phase are located in Findlay and Highland Hills, Ohio, and Leominster, Mass.
\r\n\r\n\tMacArthur has a long history of supporting affordable housing. This loan guaranty is part of its $150 million rental housing preservation initiative, "Window of Opportunity." In addition to its grantmaking, MacArthur has provided $377 million in program-related investments, which are charitable-purpose loans, equity investments, or loan guarantees.
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"title":"Innovative Public-Private Partnership Introduces $100 Million Program to Preserve Affordable Rental Homes",
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"content":"Innovative Public-Private Partnership Introduces $100 Million Program to Preserve Affordable Rental Homes \n \n December 14, 2010 \n | \n Press Release \n | \n Preserving Affordable Rental Housing, Housing, Impact Investments \n \n \n \n \n \n \n \n \n \n Share On Social \n \n \n\r\n\tAn innovative partnership to finance the preservation of federally-subsidized rental housing in underserved markets brings together major financial institutions, philanthropy, and the federal government. \r\n\n\r\n\tMacArthur, which is providing a $20 million guaranty in connection with this new effort, aims to attract $100 million for non-profit developers working to preserve and renovate approximately 20 rental properties nationwide serving more than 2,000 low-income residents. Projects already slated to move ahead include renovations of affordable rental housing for low-income families and seniors in Minneapolis, Oklahoma City, Omaha, and Toledo. \r\n\n\r\n\t\"Our nation's need for affordable rental housing has never been greater and continues to grow,\" said Debra Schwartz, MacArthur's Director of Program-Related Investments. \"This innovative approach, which brings together major financial institutions, philanthropy, and the federal government, shows that we can mobilize the capital needed to save thousands of at-risk affordable rental homes, even in difficult economic times. Much more needs to be done but this model offers one creative way forward.\" \r\n\n\r\n\tAs part of the public-private partnership, The National Affordable Housing Trust (NAHT ) and Cornerstone Real Estate Advisers LLC jointly closed an investment fund through the federal Low-Income Housing Tax Credit, a program that provides incentives for private investment in developments serving low-income renters. Investors in the fund include JPMorgan Chase, Massachusetts Mutual Life Insurance Company, MetLife, and United Bank. NAHT and Cornerstone will jointly manage the fund. \r\n\n\r\n\t\"This fund is an example of how public and private organizations working together creatively can engineer socially responsible investments that work for everyone involved, most notably the residents of the affordable housing that this fund will help preserve,\" said David J. Reilly, Cornerstone's president and CEO. \r\n\n\r\n\tSince its creation in 1986, the Low-Income Housing Tax Credit has been the nation's primary source of low-cost capital for the development and preservation of affordable rental housing. However, in the wake of the recent financial crisis, participation in the program declined sharply. While the market for Low-Income Housing Tax Credits has begun to rebound, investors are focused disproportionately on major markets and new construction projects, causing many rental preservation projects to stall, especially in smaller and rural communities. \r\n\n\r\n\tThe new fund widened the range of rental housing projects that mainstream investors will support. MacArthur's financial support addressed investor concerns regarding construction and lease-up risks as well as the funding of certain federal subsidy programs. Additionally, capital for the projects was attracted to Cornerstone's innovative two-tier structure, which provides additional collateral coverage for the senior investors. \r\n\n\r\n\tThe fund will support nonprofit housing developers acquiring and renovating hundreds of existing, affordable rental homes in five states, including: \r\n\r\n\t\r\n\t\tNicollet Towers, a landmark building in Minneapolis occupied by more than 300 low-income families and seniors, will be renovated by Volunteers of America. The overhaul will incorporate many new energy-efficient features, including re-facing of the façade. A groundbreaking event is scheduled for December 15.\n\r\n\t\t \r\n\t\r\n\t\t \r\n\t\r\n\t\tSouthwoods Apartments, a 100-unit affordable rental property in Oklahoma City, will be renovated and managed by Volunteers of America. In addition to energy efficiency upgrades, a new wireless emergency call system will be installed to enhance the health and safety of the building's elderly residents. \r\n\t\r\n\t\t \r\n\t\r\n\t\tMillard Manor, an outdated but fully occupied rental property in Omaha will be significantly expanded to provide more suitable homes for its low-income senior citizen residents. The project is being renovated and managed by Good Samaritan Society. \r\n\t\r\n\t\tRenaissance Senior Apartments is a 100 year-old property in downtown Toledo, adjacent to the famous Valentine Theater. National Church Residences will fully renovate and manage the property's 53 rental apartments. A groundbreaking event is scheduled for December 14. \r\n\r\n\n\r\n\tOther properties to be renovated in this initial phase are located in Findlay and Highland Hills, Ohio, and Leominster, Mass. \r\n\n\r\n\tMacArthur has a long history of supporting affordable housing. This loan guaranty is part of its $150 million rental housing preservation initiative, \"Window of Opportunity.\" In addition to its grantmaking, MacArthur has provided $377 million in program-related investments, which are charitable-purpose loans, equity investments, or loan guarantees. \r\n \n \n \n \n \n \n \n Related Grantee \n National Affordable Housing Trust",
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"content_en":"Innovative Public-Private Partnership Introduces $100 Million Program to Preserve Affordable Rental Homes \n \n December 14, 2010 \n | \n Press Release \n | \n Preserving Affordable Rental Housing, Housing, Impact Investments \n \n \n \n \n \n \n \n \n \n Share On Social \n \n \n\r\n\tAn innovative partnership to finance the preservation of federally-subsidized rental housing in underserved markets brings together major financial institutions, philanthropy, and the federal government. \r\n\n\r\n\tMacArthur, which is providing a $20 million guaranty in connection with this new effort, aims to attract $100 million for non-profit developers working to preserve and renovate approximately 20 rental properties nationwide serving more than 2,000 low-income residents. Projects already slated to move ahead include renovations of affordable rental housing for low-income families and seniors in Minneapolis, Oklahoma City, Omaha, and Toledo. \r\n\n\r\n\t\"Our nation's need for affordable rental housing has never been greater and continues to grow,\" said Debra Schwartz, MacArthur's Director of Program-Related Investments. \"This innovative approach, which brings together major financial institutions, philanthropy, and the federal government, shows that we can mobilize the capital needed to save thousands of at-risk affordable rental homes, even in difficult economic times. Much more needs to be done but this model offers one creative way forward.\" \r\n\n\r\n\tAs part of the public-private partnership, The National Affordable Housing Trust (NAHT ) and Cornerstone Real Estate Advisers LLC jointly closed an investment fund through the federal Low-Income Housing Tax Credit, a program that provides incentives for private investment in developments serving low-income renters. Investors in the fund include JPMorgan Chase, Massachusetts Mutual Life Insurance Company, MetLife, and United Bank. NAHT and Cornerstone will jointly manage the fund. \r\n\n\r\n\t\"This fund is an example of how public and private organizations working together creatively can engineer socially responsible investments that work for everyone involved, most notably the residents of the affordable housing that this fund will help preserve,\" said David J. Reilly, Cornerstone's president and CEO. \r\n\n\r\n\tSince its creation in 1986, the Low-Income Housing Tax Credit has been the nation's primary source of low-cost capital for the development and preservation of affordable rental housing. However, in the wake of the recent financial crisis, participation in the program declined sharply. While the market for Low-Income Housing Tax Credits has begun to rebound, investors are focused disproportionately on major markets and new construction projects, causing many rental preservation projects to stall, especially in smaller and rural communities. \r\n\n\r\n\tThe new fund widened the range of rental housing projects that mainstream investors will support. MacArthur's financial support addressed investor concerns regarding construction and lease-up risks as well as the funding of certain federal subsidy programs. Additionally, capital for the projects was attracted to Cornerstone's innovative two-tier structure, which provides additional collateral coverage for the senior investors. \r\n\n\r\n\tThe fund will support nonprofit housing developers acquiring and renovating hundreds of existing, affordable rental homes in five states, including: \r\n\r\n\t\r\n\t\tNicollet Towers, a landmark building in Minneapolis occupied by more than 300 low-income families and seniors, will be renovated by Volunteers of America. The overhaul will incorporate many new energy-efficient features, including re-facing of the façade. A groundbreaking event is scheduled for December 15.\n\r\n\t\t \r\n\t\r\n\t\t \r\n\t\r\n\t\tSouthwoods Apartments, a 100-unit affordable rental property in Oklahoma City, will be renovated and managed by Volunteers of America. In addition to energy efficiency upgrades, a new wireless emergency call system will be installed to enhance the health and safety of the building's elderly residents. \r\n\t\r\n\t\t \r\n\t\r\n\t\tMillard Manor, an outdated but fully occupied rental property in Omaha will be significantly expanded to provide more suitable homes for its low-income senior citizen residents. The project is being renovated and managed by Good Samaritan Society. \r\n\t\r\n\t\tRenaissance Senior Apartments is a 100 year-old property in downtown Toledo, adjacent to the famous Valentine Theater. National Church Residences will fully renovate and manage the property's 53 rental apartments. A groundbreaking event is scheduled for December 14. \r\n\r\n\n\r\n\tOther properties to be renovated in this initial phase are located in Findlay and Highland Hills, Ohio, and Leominster, Mass. \r\n\n\r\n\tMacArthur has a long history of supporting affordable housing. This loan guaranty is part of its $150 million rental housing preservation initiative, \"Window of Opportunity.\" In addition to its grantmaking, MacArthur has provided $377 million in program-related investments, which are charitable-purpose loans, equity investments, or loan guarantees. \r\n \n \n \n \n \n \n \n Related Grantee \n National Affordable Housing Trust",
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"metadata_title":"12 States & Cities to Preserve 70,000 Affordable Rental Homes ",
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"custom_t_title":"12 States & Cities to Preserve 70,000 Affordable Rental Homes ",
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"custom_t_short_description":"Seizing the opportunity to make needed long-term investments in the face of a weak economy, 12 states and cities are launching innovative projects to preserve more than 70,000 affordable rental homes.",
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"custom_t_content":"\r\n\tSeizing the opportunity to make needed long-term investments in the face of a weak economy, 12 states and cities are launching innovative projects to preserve more than 70,000 affordable rental homes with support from MacArthur.
\r\n\r\n\t
\r\n\t\tThe new projects will assist military families in Maryland, seniors in rural Iowa and Vermont, low-wage workers in Florida and Oregon, and people who have been homeless in Los Angeles. They will promote energy efficiency in Pennsylvania, save distressed buildings in Minnesota, improve management of rental housing in Washington State, and ensure that rental homes are available in gentrifying areas near public transit in Denver.
\r\n\t
\r\n\t\tWith the stock of affordable rental housing disappearing at an alarming rate, MacArthur’s $32.5 million investment – $9.5 million in grants and an additional $23 million in low-interest loans – will leverage more than $147 million in other funding. The news was welcomed today by federal, state, and local housing officials across the country.
\r\n\t
\r\n\t\t“These grants have spurred state and local innovation and leadership in the preservation of affordable housing,” said U.S. Department of Housing and Urban Development Secretary, Shaun L. Donovan. “At each grantee site, a representative of HUD has participated in developing the strategies and aligning efforts. It is my goal to make HUD a strong partner at the state and local level. The MacArthur Foundation should be commended for supporting partnerships across the government, private and nonprofit sectors.”
\r\n\t
\r\n\t\tState and local governments in 40 states competed for MacArthur’s support, indicating broad, national interest in preserving affordable rental housing. The Foundation’s funding for these 12 projects is a part of MacArthur’s Window of Opportunity initiative, a $150 million, ten-year effort to preserve affordable rental homes across the nation. By investing in public sector initiatives such as these, the Foundation hopes to help create a wave of policy reform in cities and states that will make it possible to preserve one million homes this decade.
\r\n\t
\r\n\t\t“For many years, the goal of home ownership has been emphasized in the U.S. and as a country we lost sight of the value of rental housing in a balanced national housing policy,” said MacArthur President Jonathan Fanton. “The end of the housing bubble and a wave of foreclosures have underscored the importance of affordable rental housing. We now have an opportunity to reset the policy agenda, restore rental housing to its proper place, and reshape the policy environment so that it both encourages rental housing preservation and makes it easier to do. State and local governments are at the forefront of this effort, showcasing innovation and trying fresh approaches.”
\r\n\t
\r\n\t\tAlmost all Americans are renters at some point in their lives. Today, about one in three households – home to more than 75 million people – rent their homes, a number that is rising because of the foreclosure crisis and overall weak market for home sales. Yet, the supply of affordable rental homes is shrinking. Over the last decade, more than one million affordable rental homes were lost due to demolition, conversion to condominiums, expiring government subsidies, and rapidly rising rents. An additional one million homes are expected to be lost in the decade ahead. For every affordable home built each year, two are lost. This means there are not enough affordable homes for millions of Americans all across the nation, not simply in urban areas.
\r\n\t
\r\n\t\tNow, while housing prices decline, acquiring multi-family rental properties is becoming more affordable, enabling cities and states to use scarce dollars more efficiently and effectively. The average cost to preserve a home is half that of building a new one. Preserving affordable housing also provides a stimulus to local economies. For instance, each job supported or created through affordable housing development in Oregon generates another one and one half jobs, on average.
\r\n\t
\r\n\t\t“We’re leveraging our mass transit expansion and ensuring that Denver residents of all income levels have access to affordable housing near these critical transportation corridors,” said Denver Mayor John Hickenlooper. “This creates important economic opportunities for our workforce and further strengthens the character and vitality of Denver’s neighborhoods.”
\r\n\t
\r\n\t\tExamples of the 12 creative state and local projects include:
\r\n\t
\r\n\t\t- \r\n\t\t\tDenver – The City and County will establish a new loan fund for transit-oriented development that preserves affordable rental housing near existing and planned regional public transit stations. This investment will also help residents access job centers throughout the region. The Denver metropolitan area is undergoing the largest expansion in the nation of its public transit system.
\r\n\t\t- \r\n\t\t\tMaryland – Military base closures and the related relocation of 40,000 households will increase pressure on rents in eight counties. The State will ensure that rental housing preservation is a key element of the region’s response to the base closures by identifying preservation opportunities and creating a compact among state and local housing leaders to align efforts.
\r\n\t\t- \r\n\t\t\tOregon & Portland – The City and State are expanding the Oregon Housing Acquisition Fund, a revolving loan fund created to finance the purchase of at-risk properties until permanent financing is available. Over the next five years, federal subsidy contracts will expire on 80 percent of Oregon’s privately-owned rental housing. Nearly one-quarter of these homes are located in Portland, where more than 2,700 families are waiting for rental assistance.
\r\n\t\t- \r\n\t\t\tPennsylvania – In the largest such effort in the nation, Pennsylvania will conduct comprehensive energy audits to determine the most appropriate and cost-effective improvements for increasing energy efficiency in rental homes. Results will help reduce anticipated 40 to 60 percent increases in utility expenses in affordable rental housing for some of Pennsylvania’s neediest families.
\r\n\t
\r\n