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 affordable and workforce 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 gained only 77,000 housing units, worsening the housing crisis.
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 are dependent 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 that are typically for-sale. Driven to reach the highest returns for investors, developers are generally incentivized to aim for the highest rents or sale prices possible.
As the state continues to grow in population and jobs, we are getting further and further behind in affordable rental options. The New Way Homes Fund supports 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 mixed-income projects to 100% supportive housing.
The New Way Homes Fund supports a new source of housing supply. The fund targets a 6% return to investors and can put this capital to use as equity in new construction.
New Way Homes is raising a $10M fund to pilot 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.
To individuals and businesses, 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%. New Way Homes has attracted investment from foundations and impact investment funds at 3% fixed return for 5-7 years.
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 supports projects ranging from 100% supportive housing to affordable housing within mixed-income projects.
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 existing land-owners such as churches, schools, individuals, and even governments, to build affordable and workforce housing units on underutilized properties without having to risk their land nor invest capital into the project.
To end rent burden in California by creating environmentally and financially sustainable housing units rented below market rates for residents who are struggling with housing costs including households earning middle incomes, and 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 where they already work.
Here are a few projects that New Way Homes is supporting in the SF/ Monterey Bay Area:
50-100 unit Permanent Supportive Housing Project in Santa Cruz
11 unit adaptive re-use project in East Oakland
A mixed income project near University of California - Santa Cruz.
The restoration of a vacant Victorian into 7 units of supportive housing.
In addition to these sites, New Way Homes is funding the purchase four additional vacant parcels for development.
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
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
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