Escalating land costs in a hot real estate market drive up the price of affordable housing. We want to acquire land now for future development and preserve it as a community asset. This is called Land Banking
As rapid-paced development continues, opportunities for creating affordable housing are lost to the highest bidder. Yet the development process for a nonprofit can take time. Grants and funding sources must be secured in advance. Homebuyers need time to prepare and get qualified for mortgages. All this makes if difficult to compete with other developers.
The Chaffee Housing Trust has created two opportunities for donors and investors to participate at a meaningful level. By pooling small and medium-sized donations in the Bricks & Mortar fund, construction costs can be covered when building begins, giving the community equity in the affordable homes. To acquire land, the Impact Investment Fund has been created to give investors a way to participate while getting a modest return on their investment. These funds are pooled to acquire properties when the timing is right, and not miss out to fast-acting private money. The fund is secured by the land itself, for two to five years, until construction financing can take out the loan, paying back investors with interest