Zero Subsidy Affordable Housing Volunteer Financial Advisor, CrowdDoing Bobby Fishkin (via Reframe It), Marc Rand, and Mark Moulton have been developing a complementary way to approach making Bay Area housing accessible. CrowdDoing, a joint initiative between Reframe It and Match4Action Foundation is supporting zero-subsidy affordable housing.
Zero subsidy affordable housing is possible, and variations of it work now in the real world. Anti-poverty impact investable housing through equity rather than debt is achieved by separating appreciation value from utilization value of assets. Property rights can be fractured in service and support of stakeholder interest.
As one example, for more than fifty years, Stanford University has made such an arrangement for their off-campus housing for professors. Our notion is that such an arrangement could be offered by an administered investment pool to buyers of a fraction of a home’s appreciation value, combined with the right to live in the home. We suggest that there are investors who could find viable this kind of impact investment in real estate, based on appreciation value but not use value for life of tenant/owners. This might be an innovation in housing affordability that could provide a substantial fraction of the population who cannot currently be housed in existing markets within region a housing opportunity.
Stanford buys half of the appreciation value of each home but not the use value on behalf of the university through a mortgage participation agreement structure. Our goal is a zero subsidy means of scaling affordable housing inspired by how Stanford has supported off campus professor housing over the last 50 years. Housing inclusion, Transportation inclusion,
FAQ:How is this different from down payment assistance? One is that it's not just the down payment, it could be as much as 2/3rds of the value of the house, not 5% of the value of the house, or 10%. You can see some of the distinctions here- https://www.huduser.gov/portal/periodicals/em/fall12/highlight3.html .
Why is this approach needed when there are other kinds of affordable housing? Because there is not enough for families making middle-incomes.
FAQ: Why is this approach more efficient then other mechanisms for affordable housing? Because by bringing equity sharing agreement to scale market rate capital can subsize affordability anywhere in which land constraints are significant barriers such as islands, bays and due to mountains. Pooled equity is 100 times more leveraged because market rate capital becomes self-subsidizing of affordable home fractional ownership.
FAQ: How do impact investors get out liquid from such an investment structure? Our goal is to create a long hold, holding company. Protects from the environment, insulated as liquidity is self-liquifying as holding company. Property rights in our culture of practice and law integrate many different rights together. These include: the initial value for which an asset was purchased , the appreciation value of the asset over time, and the year-round use-value of the asset. This unity of property rights places vulnerable people between 40% of average annual income and 150% of average annual income in this region at risk of being unstably housed. This instability is due to having a too large portion of their annual income paid to housing expenses. Housing costs 2 to 3 times too much for these people to afford. Within that range of incomes, zero subsidy affordable housing strategies can be of exceptional impact potential.
Now, when a family buys a home or apartment, they must almost always buy the whole home. Usually those who do not own homes, rent them. Those who are first time home buyers get a mortgage for the full value of the home. This model w\ould use mortgage participation agreements with qualified families that would allow the fund to buy a fraction of the value of the home (at time of future sale) while allowing the family who buys the rest of the value of the home the right to live there by financing their fraction or arranging to live rent free. A publicly traded fund could buy fractions of the future sale prices of homes. The investors could sell to the fund simply by liquidating their shares. An open issuance of shares could allow more impact investors to invest and through these purchases of shares in the fund, more homes could be purchased. If half the appreciation value of each home was not owned by families, because less money would need to be borrowed, then families could have more secure housing. A publicly traded fund that is designed to leverage mortgage participation agreements to make home ownership more accessible to first-time buyers could attract impact investment. In San Francisco, the median home price is $824,600. The median 20 percent down payment is $164,920. http://www.mercurynews.com/2017/01/16/a-silicon-valley-down-payment-could-buy-you-an-entire-house-in-much-of-the-u-s/ . At a 4% interest rate over 30 years that means a monthly payment of $3,934. But suppose that a first time home owner is only buying half of the value of a home - 40% of the appreciated value, and 100% of the right to live there? Suppose that first-time buyer is not paying rent to the passive impact investors who have bought a percentage of the future purchase price of the home. Then their monthly payments would be $1,967. Such a Fund would have an open issuance to secure additional investors. If investors could be attracted based on the overall rise in book value of the real estate being owned compared to other regions in the world, the affordable housing fund could be both economically attractive and impactful.
Zero Subsidy Affordable Housing Volunteer Financial Advisor, CrowdDoing
A self-liquidating structure through a publicly traded hold co can address these challenges if combined with impact investing 30-70% of the appreciation value per home.
Zero Subsidy Affordable Housing Volunteer Financial Advisor, CrowdDoing Consolidating and analyzing financial data,
Providing creative alternatives and recommendations to simulate the cost benefits of biophelia
Assembling and summarizing data to structure sophisticated reports on financial simulation status and risks
Zero Subsidy Affordable Housing Volunteer Financial Advisor, CrowdDoing will research and analyze financial information to help company make well informed decisions, write reports
Consolidate and analyze financial data and financial forecasts taking into published empirical studies
Assemble and summarize data to structure sophisticated reports on financial status and risks
Develop financial models, conduct benchmarking and process analysis
Conduct business studies on past, future and comparative performance and develop forecast models
Identify trends, advise initiative and recommend actions to a senior financial analyst based on sound analysis
Track and determine financial status by analyzing actual results in comparison with forecasts for biophelia pilots
Reconcile transactions by comparing and correcting data
Gain and update volunteer knowledge to remain informed about novelty in the field
Consult with management to guide and influence long term and strategic decision making within the broadest scope
Proven working experience as a finance analyst
Proficient in spreadsheets, databases, MS Office and financial software applications
Hands on experience with statistical analysis and statistical packages
Outstanding presentation, reporting and communication skills
Proven knowledge of financial forecasting and diagnosis, corporate finance and information analysis
BS degree in Finance, Economics or related field
Zero Subsidy Affordable Housing Volunteer Financial Advisor, CrowdDoing
Provide strategic advice across a variety of financial products and services relevant to biophelia cost benefit analysis (debt management, cash management, insurance coverage, investments)
Assess prospective biophelia adopter an overall financial picture, understand their needs and develop a solid financial plan
Network, generate leads and grab opportunities to sell mutual funds, stocks, bonds etc to meet sales quotas
Keep abreast of new industry’s trends and research market to back up financial consulting
Oversee the course of the financial plan and update it, if necessary, to ensure profits
Comply with all industry rules and regulations
Liaise with providers, solicitors, valuers and other professionals
Proven working experience as a financial adviser or related field
Ability to analyse market’s financial data and to provide appropriate data-based advice
Strong communication, negotiation and presentation skills
Accuracy, attention to detail and the ability to explain complex information clearly and simply
Excellent PC knowledge and ability to operate database systems
Current certificate of qualifications (FCA, CII, DipFA, CISI or other)
BS degree in Finance or related field
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he only way CrowdDoing.world can realize its impact potential is through virtual volunteers,service learners(http://blog.reframeit.com/service-learning-and-skilled-volunteering/), and micro-leaders (https://real-leaders.com/leveraging-micro-leadership-to-make-aspirational-goals-achievable/) coming together.
See this brief video aboutMicro-leadership at CrowdDoing (https://www.youtube.com/watch?v=mhdB2YJ8Ocs&app=desktop). Micro-leadership means that each person adopts a dimension of responsibility for a collective problem in our society through collaborating on that area creatively individually and together through social innovation.
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CrowdDoing [dot] world is a joint initiative of Match4Action Foundation and Reframe It. CrowdDoing is focused on addressing the social, economic, and environmental challenges our world faces by collaborating with professionals and volunteers from many different industries. We offer a platform for individuals to connect and collaborate toward creating systemic change. We would love for you to join the team! What makes us different? CrowdDoing aims to support social innovations with transformative impact potential through global multi-disciplinary volunteering, micro-leadership and service learning. We work through operating leverage for systems change to achieve collective agency. We orient to ikigai and self-determination theory in order to help each person have the perfect role. #systemschange #systemsthinking #servicelearning #socialinnovation
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