Non-Profits can play an integral role in helping solving the housing crisis. Non-Profit Housing Developers in partnership with companies that need Workforce Housing can dramatically help increase the supply of affordable housing.
Four Pillars has created a model where new, purpose built affordable housing developments will have up to one third of its units rented to participating companies for their employees and rented at below and near market rates. This approach will produce positive cash flow and ensure that our city has a perpetual and growing supply of affordable housing.
Innovative Partnerships to Solve the Workforce Housing Crisis
The housing crisis is one of the most pressing challenges facing our cities today. While much of the focus has been on high-end luxury development, there is a critical shortage of affordable housing for the workers who keep our communities running.
But a new model of collaboration between non-profit housing developers and local businesses could be the key to unlocking a sustainable supply of workforce housing.
Non-profit housing developers, working hand-in-hand with local employers, are pioneering an innovative approach to workforce housing. By leveraging the resources and expertise of both sectors, they are creating purpose-built affordable developments that reserve a significant portion of units for the employees of participating companies.
This model not only ensures a steady supply of affordable housing for workers, but also generates positive cash flow to sustain the developments over the long term. By renting a portion of the units to participating companies at below-market rates, the non-profits can maintain affordability while also providing a reliable revenue stream.
There could be a Rent-to-Own program included in some of the projects expressly created to allow low/mid income renters to enter the housing equity market. This would work by allowing qualified renters to gradually build equity in their homes over time, with a portion of their monthly rent payments going towards an eventual down payment.
A key principle is that homes purchased at a discounted rate will have a covenant on their property equal to the discount from full-market that they realized at the time of purchase. For example, if a home were sold at 35% below market value, that 35% discount would be written into the property title as a permanent affordability covenant. This ensures the home remains affordable for future low/mid-income buyers, even when the original owner decides to sell. In some instances the discount rate will be from 35-40%.
The rent-to-own program would typically have a 5-10 year timeline, during which renters make monthly payments that build their equity stake in the home. After this period, they would have the option to purchase the home at the discounted, covenant-protected price.
If you are interested in learning more about our model please contact us. or call Joseph (778-835-5801 or Larry (604-787-7654)
Together we can start ‘Building Solutions to the Housing Crisis’.
“If we could set a national goal to get 20% of our overall housing in that below market, non-private market, category of rentals, then we’re starting to develop a healthy and fair and equitable housing system in Canada.”
Jackie Kennelly, Carlton University