ESTABLISH HOUSING PRESERVATION FUND | Case Studies
The City will need a strong partner with the necessary expertise to successfully run the fund. The City should complete a detailed fund structure analysis to identify what’s best for Greensboro.
Precedent preservation fund models point to two potential fund structures for Greensboro. A fund in Greensboro could take the form of the Minneapolis NOAH Impact Fund, which is managed by a dedicated entity,
the Greater Minnesota Housing Fund. Alternatively, in the model of the JGB Impact Fund, Greensboro's fund could be managed by established organizations operating in the city.
NOAH Impact Fund Minneapolis, MN
JBG Impact Fund/Washington Housing Conservancy Washington, DC
In 2017, the Greater Minnesota Housing Fund created a partnership to preserve naturally occurring affordable housing and expiring subsidized buildings. The resulting Fund is comprised of $32.5 million raised from public, bank, and philanthropic sources. It is separated into a project investment fund and a credit enhancement tranche. Only the project fund may be used to invest in projects. The remaining credit enhancement serves as a back stop to losses incurred from fund investments.
Established in 2018, the JBG Impact Fund is currently comprised of $93 million in investor commitments. The fund is anticipated to preserve 3,000 units during its five-year investment horizon and ten- year hold of each property. The Washington Housing Conservancy is an independent non-profit that purchases properties with capital from the impact fund to deliver services and ensure units remain affordable.
See the Appendix for additional information on these case studies.