BiggerPockets

Hi, David!

I work with non-profit organizations and we provide housing for their clients.

What I did, literally, was call the non-profits in my area that offered emergency housing, offer your property as an opportunity for housing, and they will place you on their list. It's always good to call and meet them in person with a flyer of your property and some other form of credibility (tenant references, brochure, etc.).

Also, keep your ears and eyes to what's happening in the community. Read the paper and listen to the news. There are plenty of org's that are looking for housing but 1. The housing in the neighborhoods aren't visually attractive nor provide safety 2. Most of the active investors aren't in low-income neighborhoods.

It's all about relationships. Check out my recent blog post and hopefully it will give you some insight.

Be Blessed!

Sonja,
I am interested in providing this type of housing, however how is the landlord paid? Are the criteria for rental the same or more stringent than section 8? Hmmmm.... I'm very interested!!

Ok, here are my replies:

@Jason mak- yes, most of the non-profits have tenants and/or housing in low-income areas. Most of the tenants choose to stay in these areas due to familiarity as well as transportation (i.e bus routes). In my experience, most of the org's that I work with have very little housing resources and yes, the harvest is plenty when it comes to tenants. The biggest issue here in Memphis is that tenants need housing that includes utilities. The tenants either 1. have outstanding balances with MLGW (Memphis Light Gas and Water)and can't get their services activates or 2. can't pay the monthly bill due to fixed income.
Also, org's in Memphis mostly provide temporary housing; we offer permanent housing and their referrals get top priority.Just keep in mind the type of tenants that these org's assist; they are normally not your ideal tenants. The good side of this is that non-profits offer additional support and make the tenants accountable for keeping their units clean/paying their share of the rent (if necessary) to stay in the housing program. Hope this answers your question.

Bump

Old post. Someone bumped it

I have about 15 years involvment with low-moderate income housing in my area, board of directors of our Habitat For Humanity affiliate and started non-profit housing organizations for different needs.

I bet the OP and those making older posts have left the building. Good points that it's all about relationships with other oragnizations. One suggestion starting off is to make sure you are not duplicating services in your community or get into competition with other non-profits. Non-profits live for grants and donations and it's very competitive and political, don't step on another's turf.

@Michael Lauther what are your ideas? How deep are your intentions? Do you want to start a non-profit or act as a landlord with properties modified for special needs?

I'll walk you throuh starting any housing entity or arrangement for vets. It should not be difficult or very costly at all, but it is time consuming.

For a non-profit you will need at least three non related parties you trust and can work with as directors and you go in as the executive director so you can be paid for management.

Another way is to contract with an existing non-profit, much easier, and the more guidance you can provide the more valuable you would be to them. Thinking in terms of one property, IMO is not sufficient, more like ten at a time, but remember, if you partner with an existing non-profit you can have alot of horsepower to get things done. Financing can be entirely different than what you have probably done.

We can run through whatever here, but what do you have in mind?

Michael and Sonja, be happy to address the subject of each, I'll start another thread.

As to that claim;

I can see where a group home, converted from a SFD with a special use permit for zonning can produce 3 or 4 times the revenue for specific tenants. The one I was affiliated with had been added on to to facilitate 4 residents, wheel chair dependant and who had shared assistance, set up much like a nursing home but with mediacl care. Because no similar housing was available rents were higher on a sq. ft. basis, but construction was major and was not the cash cow it would appear to be saying 4X higher rents.

SFDs in this area are slightly higher than the norm or at pretty much market rate. The great part is that tenants don't move as much so you get a long term tenant.

Sounds to me like hype again for this program mentioned.

Leasing to existing non-profits long term will not generate higher rents, in fact they want a better deal. Having your own N/P and generating your own tenants can get slightly higher rents but they need to be justified. It depends on the modifications too, wider doors, open cabinets, pull under sinks, reinforced ceiling attachments for slings and bars, larger bath rooms, roll in showers, exterior ramps, van accessable garage with additional space and ramp, bed and bath alarms and open floor plans are hard to find. Some conversions are inexpensive, some are not.

The best thing about N/P special housing is 1. generally a great tenant, 2. Longer lease terms and stability. 3. Actually providing a needed service and a good reputation in the community (depends on what king of housing). Lastly, almost zero liability under state law for N/P corporations for Officers, directors and employees, they have to really mess up as intentional acts are not covered, but such persons acting in good faith under a N/P can not be held personally liable!

I'll start another thread...

Folks - Please do not post solicitations in this thread; I've removed 2 already. This is a discussion area. If you want to advertise yourself or your services, please post an ad in our Classifieds forum (you must be a PRO member to do so).

Thank you.