Tired of not closing deals to preserve affordable housing due to delays in public financing, the nonprofit Housing Partnership Network created a real estate investment trust. The results have been "game changing."
Pam Fessler studies the example of the Housing Partnership Network, a coalition of housing nonprofits that created a real estate investment trust (REIT) to become more competitive in the housing market.
Dependent on government bond issues and housing tax breaks to pay for projects created a typical problem, according to Chrsistopher LoPiano, VP of Community Preservation and Development Corp., an affordable housing nonprofit in the Washington, D.C., area and Virginia "What we're not competitive on is closing quickly," says Lopiana in Fessler's report, "because we're dependent upon public financing, and public financing just takes longer."
"So...the Housing Partnership Network, decided it was time to get creative — to do what private investors have done for decades. They became the first nonprofits to form what's called a real estate investment trust, or REIT."
"The nonprofit groups figured they could offer potential investors a modest return on their money — about 5 to 7 percent. It's less than what they'd get from a private-sector REIT, but the groups also appealed to investors' desire to preserve affordable housing. And they got several big ones — Prudential, Morgan Stanley, Citibank and the Ford and MacArthur foundations — to chip in an initial $100 million."
The report has more on the initial successes and challenges of the REIT arrangement for the nonprofit sector. "So far, the Housing Partnership trust has purchased three properties like this — in Virginia, Illinois and California. Ades says the trust is looking at other apartments and making plans to raise an additional $250 million."
Fessler's lede mentions the rental housing by the Joint Center for Housing Studies at Harvard, which was also detailed recently by the Sustainable Housing Collective.
FULL STORY: Nonprofits Pull In Investors To Tackle Housing Affordability

Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?

Cal Fire Chatbot Fails to Answer Basic Questions
An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

What Happens if Trump Kills Section 8?
The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts
Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Appalachian Highlands Housing Partners
Gallatin County Department of Planning & Community Development
Heyer Gruel & Associates PA
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie