we must do our part

FUNDING SOURCES

1. Government Grants and Subsidies: Governments at the local, state, and federal levels often provide grants and subsidies to support affordable housing initiatives. These funds can be used to acquire blighted properties, renovate them, and convert them into mid-term rentals or affordable housing units. Non-profit organizations and developers can apply for these grants to help cover the costs associated with the transformation process.

2. Low-Income Housing Tax Credits (LIHTC): LIHTCs are federal tax incentives provided to developers and investors who participate in affordable housing projects. These tax credits can be sold to investors, generating equity that can be used to finance the redevelopment of blighted properties. LIHTCs are typically allocated through state housing agencies and can significantly reduce the costs of developing affordable housing.

3. Community Development Block Grants (CDBG): CDBGs are federally funded grants provided to local governments to support community development projects, including affordable housing initiatives. These grants can be utilized to acquire blighted properties, conduct environmental assessments, carry out necessary infrastructure improvements, and finance the construction or rehabilitation of affordable housing units.

4. Affordable Housing Trust Funds: Many cities and counties have established affordable housing trust funds, either through public or private sources. These funds are specifically dedicated to supporting affordable housing projects. They can be used to acquire blighted properties, finance rehabilitation and construction costs, offer rental subsidies, or provide down payment assistance to low-income individuals and families.

5. Private Financing and Investments: Private financing options include traditional bank loans, mortgage loans, and private investors. Developers and organizations can secure loans or attract investors interested in affordable housing and sustainable development. Private financing can be used to cover acquisition costs, property improvements, and overall project expenses.

6. Philanthropic Organizations: Non-profit organizations and developers often seek funding from philanthropic organizations with a focus on affordable housing and community development. These organizations may offer grants, loans, or partnerships to support the transformation of blighted properties into mid-term rentals and affordable housing units.

7. Impact Investment Funds: Impact investors are individuals or organizations that seek to generate both financial returns and social or environmental impact. Impact investment funds often target affordable housing projects and may provide funding for blighted property transformation. These funds can be accessed by developers and organizations committed to sustainable and affordable housing initiatives.

8. Redevelopment and Tax Increment Financing (TIF): In some cases, blighted property transformation projects can qualify for redevelopment and tax increment financing. TIF allows municipalities to designate a specific area as a "tax increment district" and use the incremental increase in property tax revenue generated from the project to finance redevelopment efforts.