Preserve Affordable Housing - Multifamily Acquisitions - Buy and Hold

Dynasty Housing Network LLC is a for-profit, woman-owned real estate business with a passion for homelessness initiatives and to increase affordable housing. We are a team of emerging developers with an objective to preserve affordable housing by efforts of multifamily acquisitions and new developments. 

CRISIS ISSUE
There is a shortage of affordable housing for individuals and families that have an income at or below 60% of the average median income in  metropolitan and non-metropolitan areas. For example, in Minneapolis, MN the average median income is $76,000. Some families in this location  have an income at 60% of  area median income, equal to $45,600 annually.  The challenge for individuals and families in this location is that a majority of the residents have an income of 30% or less of area median income, which is equivalent to $22,800  or less annually for housing, food, utilities and other expenses.  Unfortunately, individuals and  families sacrifice basic needs to be able to afford housing. 

CITY/STATE PROPOSED SOLUTION
The State of Minnesota has affordable housing initiatives for emerging developers to help preserve and develop new multifamily affordable housing.  As a participant in these program initiatives, our team will have assistance with underwriting properties, producing proforma based on a property offering memorandum, access to resources for owning apartments, city's team of specialists will help with due diligence in assessing property, generous funding sources available to assist in a multifamily acquisition and for new developments, deferred funds to help with cash flow and low down payment,  green cost share program  for energy efficiency benefits, discount of  40% on property taxes (depending on number of affordable units), which will increase net operating income of the property.  

OPPORTUNITY
The City of Minneapolis residents have voted to have rent increase limits on private property in Minneapolis, which would be a rent increase limit annually of 3% to 5%.  The City of St.Paul voters approved the "Residential Rent Stabilization Ordinance," which limits any rent increase within a 12 month period to 3%. Because of the rent stabilization programs in these cities and high property taxes, many  owners of multifamily apartments are ready to sell. The generous affordable housing funding available would make it feasible to purchase a multifamily apartment (that has rents below market rate) with less out of pocket cost than a typical multifamily purchase without use of funding. Our team needs working capital so that we can place the apartment purchase of interest under contract to have site control and cover initial costs of due diligence and 1% loan origination fee.  The $300,000 amount of working capital we want to raise will help acquire and preserve 10 multifamily apartment buildings (12 units each), priced between $1.5 million to $2 million each, using state and city affordable housing funding sources. A contingency to exit out of the purchase agreement and have down payment refunded if the City decides not to provide funding because of the condition of the property, will be included in purchase agreement. The State will have 1st and 2nd mortgage (depending on funding our team chooses for the acquisition). The City will have 3rd mortgage (if this funding option is selected). Properties purchased will be leveraged to preserve more future affordable housing acquisitions. State funding has no deadline for use of affordable housing funding. City's deadline to apply for funding is April 13, 2024. I welcome investors with an interest in social impact to join me and help to preserve affordable housing. With a minimum capital of $50,000 raised, our team can start the process to preserve a multifamily apartment as soon as March or April 2024 - have access to City funding before their deadline.  The closing process of multifamily apartment acquisition using State and City funds takes 4 months. 

BUSINESS CONTRIBUTION
Our team plans to purchase multifamily apartments in Minneapolis and St. Paul with a minimum of 5 units or more. There is no maximum number of apartment units that can be purchased to preserve affordable housing in Minnesota. Only those apartment buildings for sale with rent amounts below market rate and within the city's affordable housing rent guidelines will be considered for purchase. Real estate transaction is to buy and hold and deed to contain affordable housing restrictions. Our team will focus on preserving affordable housing and upgrade to producing new developments.