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Homes for Good Initiative. Claudia Askew  CHC provides loan funds to promote affordable housing and community development  Loans are available to members.

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Presentation on theme: "Homes for Good Initiative. Claudia Askew  CHC provides loan funds to promote affordable housing and community development  Loans are available to members."— Presentation transcript:

1 Homes for Good Initiative

2 Claudia Askew

3  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

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5  12 year history of investing in communities  9,000 housing units  More than $1 billion invested

6  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

7  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

8 Paul Dombowsky

9  $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

10  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.

11  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

12 US$1.5BN 2011 –raised through crowdfunding globally 452 04/2012 – Number of Crowdfunding Platforms

13  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

14 FundersBeneficiariesAgents 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 Based Housing Partner Equity Fund

15  $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 http://www.indiegogo.com/chc-housing

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17 Thank you  FYI – Whitepaper: http://communityhousingcapital.org/chc-crowdfunding-whitepaper http://communityhousingcapital.org/chc-crowdfunding-whitepaper  Claudia Askew CHC Housing +1.202.863.9060 claudiaaskew@hotmail.com claudiaaskew@hotmail.com  Paul Dombowsky Ideavibes +1.613.878.1681 paul@ideavibes.com www.ideavibes.com paul@ideavibes.com www.ideavibes.com


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