Community Housing Capital

Homes for Good Initiative

About Community Housing Capital

Claudia Askew

CHC provides loan funds to promote affordable housing and community development

Loans are available to members of the national NeighborWorks network

Affordable housing for working people – access to quality housing at affordable rates

A National Loan Fund for Affordable Housing

Leveraging Funds for Greater Impact

12 year history of investing in communities

9,000 housing units

More than $1 billion invested

Investment Record

Less support for affordable housing, rising housing process

Need to diversify funding base Ideavibes presented at Opportunity Finance

Network conference CHC steps up as pioneer in crowdfunding for

affordable housing Built support within industry before

launching campaign

Looking for New Solutions in a Challenging Economy

The numbers show the part that Housing plays in the economy and its important role in overcoming current economic challenges. Despite its role in creating them in the first place.

• Total residential investment (incl residential fixed investment, furniture, rents, etc.) accounts for about 20% of GDP

• During past 9 recessions, housing sector accounted for about 16.5% of economic growth in first year of recovery

• In 2008, nearly 12.5% of jobs were loosely tied to housing industry – with the housing crash, nearly 40% of these have been lost

• Each new home built creates 3 construction jobs for 1 year NAHB

• New home construction generates average of $90,000 in tax revenue

• Access to affordable housing helps employers access labor close by

The economic benefits of why housing makes sense for philanthropy

Economic Benefits of Housing Philanthropy

Crowdfunding by CHCPaul Dombowsky

$18.91 Bil for Tenant-Based Rental Assistance (TBRA).  According to (CBPP), the bill underfunds TBRA contract renewals by $93 Mil

$1.88 Bil for Public Housing Capital, which is 8% less than last year, and 22% less than President Obama proposed in budget.

$3.96 Bil for Public Housing Operating funds - a 14% decrease. The HOME program was cut to $1 Bil from $1.6 Bil. HUD

estimates the loss 31,000 affordable homes. Community Development Block Grant (CDBG) formula grants

were cut to $2.95 Bil- 12% below last year $1.9 Bil for McKinney Vento Homeless Assistance grants, same as

last year.  Supportive Housing for the Elderly was funded at $374 Mil- 6%

below FY11 levels, but 55% below FY10 levels.

http://pschousing.org/news/obama-signs-deep-hud-budget-cuts

The ProblemFunding Affordable Housing

Homeownership provides many social benefits that have downstream economic impacts by providing stability in the home which results in:

• Higher levels of employment• Decreased healthcare costs• Improved nutrition• Greater participation in education• Stable access to childcare• Reduction in crime

Housing offers donors the ability to provide impact in the community that benefits all citizens.

Social Impacts of Housing Philanthropy

There are many characteristics about housing that make it promising for crowd based funding:◦ Most understandable of all asset classes◦ One of the most widely held

+$15 trillion in the US◦ Implications on the social as well as economic to motivate

funders◦ Tangible – something real that people can see◦ Create feeling of being agent of social change for funders

Could Crowdfunding Work?

Crowdfunding in Perspective

US$1.5BN2011 –raised through crowdfunding globally

45204/2012 – Number of Crowdfunding Platforms

Depending on the type of initiative CHC wishes to launch and where you see your target market most willing to be motivated to participate, there are 4 options each with regulatory and tax implications.◦ Simple donation – tax receipt and do good feeling benefit◦ Impact Investment with low level return (dividend or interest)◦ Impact Investment with reasonable return (dividend or interest)◦ Investment with market return

Models of Crowdfunding Explored

Crowdfunding Model by CHCFunders BeneficiariesAgents of

Change

CHC will build a fund through crowdfunding that can be used as equity to fund projects such as multi-family developments, or single affordable home purchases.

Geography BasedHousing Partner

Equity Fund

Crowdfunding Project $100,000 target Focus on social media and

traditional media to get the word out

Tapping into philanthropic nature of housing’s potential

http://www.indiegogo.com/chc-housing

Questions?

Thank you FYI – Whitepaper:

http://communityhousingcapital.org/chc-crowdfunding-whitepaper

Claudia AskewCHC Housing+1.202.863.9060claudiaaskew@hotmail.com

Paul DombowskyIdeavibes+1.613.878.1681paul@ideavibes.comwww.ideavibes.com