To date, Home Funders has created 1,127 units with 328 for extremely low income families.

Through low-interest loan products, we create an incentive for developers to access existing funding streams and jumpstart the building of housing for extremely low income families. We integrate families into mixed-income units rather than create blocks of low-income units.

Investors make 10 to 20 year loans at 1% return. Grants cover services to families, public education and public policy activities, loan loss reserves and project equity, and administration.

The loans are managed by two experienced intermediaries each with a 20-year track record in housing loans, with a loss record of less than 2%. Community Economic Development Assistance Corporation (CEDAC) is a public-private, community development finance institution that provides technical assistance, pre-development lending, and consulting services to non-profit organizations involved in housing development. The Massachusetts Housing Partnership (MHP) is a statewide public non-profit affordable housing organization that works in concert with the Governor and the state Department of Housing and Community Development to help increase the supply of affordable housing in Massachusetts.

Home Funders works with local and state representatives to increase the commitment of operating subsidies that are instrumental in the creation of affordable units. The City of Boston committed $2 million in the form of 50 project-based Section 8 subsidies for a demonstration project that created the first 200 units. More recently, the Department of Housing and Community Development wrote to Home Funders on September 7, 2007 stating “You make a compelling case and we are eager to support your efforts. Indeed, supporting Home Funder projects is a top priority for our MRVP Program…the commitment of the MRVP units should ensure that no worthy project is denied funding by lenders…” Home Funders has been successful in helping the state understand the importance of pairing capital programs with operating subsidy commitments and has committed to prioritizing Home Funders projects, thus speeding development. The Governor’s Commission on Ending Homelessness has just put out a report that recommends a major shift in homelessness policy and supports the assignment of project-based operating subsidies and prioritizing development projects that target extremely low-income (ELI) families.