It takes a lot of money to fund a housing project for people who are homeless. Where does it come from? In the U.S., there are consultants who specialize in pulling together private sources so a project can qualify for public funding or tax credits. In some instances, more than 30 groups pitch in.
Needless to say, this process is time consuming, taking energy and expertise. It’s enough to discourage any non-profit group from getting involved in the housing development business. And in the long run, when the tax credits expire (in as few as 10 years), the community organization/owner will face another funding crisis.
Shelterforce has published a story featuring three community agencies that develop housing. The article focusses on three different funding approaches: social impact bonds, lowering input costs and community land trusts. Affordablehousingaction.org has reported on similar initiatives in other posts, but these examples and the commentary on the strengths and weaknesses of each one are worth a read. You can read more here: Better, Faster, Cheaper Ways to Finance Supportive Housing
And then there is Homefulness, which has taken a fourth approach. This program is created by POOR Magazine, a non-profit run by people with experience of homelessness (current or past). Properties are purchased with cash (obtaining a loan isn’t feasible), which is raised through donations. Construction proceeds using a mixture of labour and materials that are donated or purchased. So far, there are two Homefulness properties.
This achievement, ten years in the making, has not been without its challenges. POOR Magazine’s experience illustrates the numerous hurdles (financial and regulatory) that stand between the idea of housing and actually building it. Here are two articles, one in the East Bay Times: Oakland: Much-needed housing held up over three parking spots and the other in The Oaklandside: Nonprofit run by homeless people says it was unfairly taxed for trying to build housing
