In order to preserve diversity and economic opportunity for everyone in the San Francisco and Monterey Bay Area, the New Way Homes Fund is focused on creating the right type of housing supply.
New Way Homes’ Impact Investment Fund is fueling the new construction of low and moderate-income rental housing from Salinas to Santa Cruz to Oakland, without depending on competitive government subsidies.
The Housing Crisis
The housing crisis is rapidly changing our communities, adding to poverty, homelessness, environmental impacts, and increasing wealth disparity. Based on a decade of under production of new housing exemplified by years like 2018, California is projected to have a per capita shortage of 3.5M units by the year 2025.
California’s housing supply shortage has created a major problem that indiscriminately effects middle and low-income households, particularly renters and communities of color.
In 2018, California’s population grew by 360,000, yet we gained only 77,000 new housing units.
The Current Supply of New Housing
The current supply of new housing is split into two separate parts.
1) The creation of traditional affordable housing units that depend on government funding. This supply of new units has long been less than 20,000 units per year.
2) Market-rate housing production consists of the majority of new units built in California. These units are generally built as high-end units and are typically for-sale. Driven to reach the highest returns for investors, housing developers are generally incentivized to reach for the highest rent and sale price possible.
As the state continues to grow in population and jobs, we fall further and further behind in affordable rental options. The New Way Homes Fund is establishing a new source of housing supply by targeting a 6% annual return to investors. Instead of maximizing investor return by funding high-end real estate, New Way Homes invests into the new construction of charitable housing ranging from 100% supportive housing projects to mixed-income projects.
The New Way Homes Fund is establishing a new source of housing supply. The fund offers a 10-year note, targeting a 6% return.
New Way Homes is raising a $10M fund to establish a housing development model that creates affordable housing without government subsidies.
Your investment is put to work in the San Francisco and Monterey Bay Region. Your investment can also be restricted to specific counties, and even a specific project. (Request more info on our current project pipeline.)
New Way Homes offers a 10-year Note. The target average annual return over all 10 years is 6%. Annual interest payments have a minimum payment of about 3% and a maximum of 9%. New Way Homes can structure Notes of fewer years and lower annual returns upon request for Foundations, PRIs, and Impact funds.
Measured, Transparent Impact
New Way Homes measures and reports on both the financial and social return on the fund, including the number and income level of restricted affordable housing units created. The $3M raised to date by the New Way Homes Fund is supporting a pipeline of 9 projects and 350~ new housing units. New Way Homes Funds support projects ranging from 100% supportive housing to the affordable portion of a mixed-income housing project.
NEW WAY HOMES GOALS
Fund the creation of new affordable housing units beyond what is currently created by government subsidies, which has long been under 20,000 units per year in California.
Create a catalyst for mission-aligned landowners such as churches, schools, individuals, and even governments, to build low and moderate-income housing on their underutilized property.
To end rent burden in California by creating environmentally and financially sustainable housing units that are rented below market-rates to residents that currently pay 30-60% of their income to rent, including households earning middle-incomes, or households that cannot find landlords to accept their housing vouchers.
Realize the vision of local jurisdictions for higher density areas that lessen transportation burdens and climate impact, by funding urban-infill projects that provide residents the ability to live near their work.
Here are a four projects that New Way Homes is supporting in the SF/ Monterey Bay Area:
50-100 unit PSH units in Santa Cruz.
12 unit adaptive re-use project in East Oakland.
Co-living, mixed-income near UCSC.
7 PSH units in this vacant Victorian.
The New Way Homes Fund is supporting a pipeline of 9 projects and 350~ new housing units.
Put your funds to work in collaboration with:
Grant funding from:
The Inspiring Enterprise
The Hastings/Quillin Fund, an advised fund of Silicon Valley Community Foundation
Central California Alliance for Health
Silicon Valley Community Foundation
U.S. Dept. of Housing and Urban Development (HUD)
Nina and Sibley Simon
Diane & Richard Klein
Impact Investments from:
Adrian Dominican Sisters Community Investment Fund
Community Foundation Santa Cruz County
Housing Trust Silicon Valley
Community Vision (Formerly NCCLF)
Religious Communities Impact Fund, Inc.
Santa Cruz County Bank
Rowland & Patricia Rebele
Claudia Brown & David Evans
Diane & Richard Klein
Sally Arnold & Christine Weir
Cory Ray & Craig Rowell
Amahan Investments, GP
Several Anonymous Investors
New Way Homes’ Board of Directors
Robert Davidson • CEO, Canyon View Capital. Over 30 years managing residential rental real estate investment funds and previous work as a CPA.
Kim Edmonds • Founding Principal, Ventura Partners. Over 20 Years experience work with non-profits to execute commercial developments and previous experience in affordable housing development.
Owen Lawlor • Managing Member, Moss Beach Associates, LLC. Over 20 years of experience in all aspects of the Residential and Commercial Real Estate Development Process with special emphasis in governmental relations within the Land Use entitlement process.
Aura Oslapas • Principal, A+O Design Partners. Over 30 years as a design professional, including experience design, product design, and design management & strategy.
James Rector • CEO, RC Cubed. Provides funding for solar installations at non-profits and public buildings via impact investors.
Micah Silvey • Director, Certification, Green Building Certification Institute. Manages team responsible for all LEED certifications and the development & rollout of new certification programs.
Robert Singleton • Founder, Civinomics. Current work includes housing policy recommendations and research for the Santa Cruz County Business Council and Association of Realtors.
Christine Sippl • Senior Director of Programs & Strategic Partnerships, Encompass Community Services. As Senior Program Manager for Santa Cruz County’s Homeless Person’s Health Project, helped create permanent supportive housing in Santa Cruz County and partnered to form the 180/180 Initiative.
New Way Homes President: Sibley Simon • a social entrepreneur interested in implementing solutions to complex issues of equity and opportunity in the San Francisco & Monterey Bay Regions as well as all of California. In parallel, he supported the founding of other organizations working to improve the social impact of capital, including the I Do Foundation, the Responsible Endowments Coalition, and Transform Finance.
Legal Support & Capital Raise Strategy: Cutting Edge Capital
CPA & Auditor: Walters & Kondrasheff