TOGETHER WE CAN...
ACCELERATE CREATING AFFORDABLE HOUSING in the CENTRAL VALLEY and BAY AREA of CALIFORNIA...
A MODEL FOR THE FUTURE
The Affordable housing acceleration fund (AHAFund.org)
WHAT IS the MISSION of the AFFORDABLE HOUSING ACCELERATION FUND?
WHAT IS the MISSION of the AFFORDABLE HOUSING ACCELERATION FUND?
WHAT IS the MISSION of the AFFORDABLE HOUSING ACCELERATION FUND?
The Mission of ahaFUND is to accelerate creating additional Northern and Central Valley California afordable housingfor marginalized and special needs persons and families by empowering affordable housing developers with no and low cost equity and technical support.
The Fund will place grants and/low cost equity to affordable housing deve
The Mission of ahaFUND is to accelerate creating additional Northern and Central Valley California afordable housingfor marginalized and special needs persons and families by empowering affordable housing developers with no and low cost equity and technical support.
The Fund will place grants and/low cost equity to affordable housing developer projects as equity in order to qualify for remainder funding from conventional lending sources.
Equity funds placed with these projects will be sourced from grants and funds through a 501(c)(3) tax-exempt non profit corporation incorporated for this purpose.
WHY DOES THIS WORK?
WHAT IS the MISSION of the AFFORDABLE HOUSING ACCELERATION FUND?
WHAT IS the MISSION of the AFFORDABLE HOUSING ACCELERATION FUND?
Equity & Debt Funding Constraints are Removed: Typically, the most difficult constraint for affordable housing developers creating units is raising equity capital. By committing no or low cost equity for affordable projects sponsored by existing developers, ahaFUND provides the necessary financial structure to meet conventional underwr
Equity & Debt Funding Constraints are Removed: Typically, the most difficult constraint for affordable housing developers creating units is raising equity capital. By committing no or low cost equity for affordable projects sponsored by existing developers, ahaFUND provides the necessary financial structure to meet conventional underwriting ratios necessary for securing the balance of debt required to do the project.
Focusing on Transforming Existing, Available Projects Fast Tracks Creation of Units: ahaFund will focus on helping developers finance, purchase and update existing units as these properties are grandfathered, have no entitlement issues, and are the easiest to buy and rehab to provide safe, secure, comfortable, up to date units. This fast and efficient path to create needed units and will avoid delays and obstacles typical of new ground-up projects.
ahaFUND Technical Support Will Help Developers Create More Units Faster: Technical support can help find projects, package them for debt financing, improve design and add community amenities, and help manage project execution thereby allowing developers to do more with faster completion times.
Providing Grants and Low Cost Equity Funds Results in Lower Rents: Equity costs typically contribute to higher rent costs as it is often the most expensive portion of project capital structure required. Accordingly, reducing equity capital costs can reduce rents by significant percentages from the familiar 50% and 65% portions of take home incomes now required for NorCal market housing costs. Moreover, stabilized, reduced cost equity helps with more modest future rent increases. This helps keep turnover low and is beneficial to property financials, tenants and employers.
Creating High Demand , Safe and Comfortable Living Spaces Supports Healthy Businesses and Society: The need is there, it is not going away, affordable housing has the strongest demand in the real estate housing spectrum and is a stable, in fact, a growth segment that is beneficial to workers, the economy, and the health of business and the society at large. Empoyees and workers are less stressed as they are relieved of high percentage of income rent, families may be able to make ends meet on one income, there is less employee turnover for employers, and less perceived need to move out of California.
WHO WINS and WHY?
WHAT IS the MISSION of the AFFORDABLE HOUSING ACCELERATION FUND?
WHO WINS and WHY?
Marginalized Renters can afford comfortable, up to date living spaces as they no longer will pay 50%-65% of their incomes for housing costs. Moreover, they may be able to afford day care, enjoy the option of education at charter schools, more comprehensive health insurance, save a cushion for their family, or work only one job.
Employers
Marginalized Renters can afford comfortable, up to date living spaces as they no longer will pay 50%-65% of their incomes for housing costs. Moreover, they may be able to afford day care, enjoy the option of education at charter schools, more comprehensive health insurance, save a cushion for their family, or work only one job.
Employers enjoy employees not stressed by high housing costs. Plus, employers will also see less worker turnover because fewer employees will relocate due to high housing costs or disturbing, unsettling rent increases.
Lenders will make loans conforming to conservative financial ratios with reasonable and normal risk in high demand projects with low turnover, and low vacancy.
Donors achieve their philanthropic goals by contributing 501(c)(3) tax exempt donations to an effective, innovative fund supporting a highly needed socially conscious purpose that solves problems, supports families, is beneficial to employers, businesses, the community and economy at large.
Employees will have a broader range of job options including some that may have more intangible rewards instead of higher pay.
Tax Payers will be asked to pay less often for costly, inefficient, sometimes poorly run, and ineffective government housing programs.
Affordable Housing Developers can focus on what they do well instead of scrounging for equity funding.
In other words, Everyone Wins!
HOW YOU CAN HELP and MORE ABOUT Us...
HOW CAN YOU HELP?
Be an Angel Investor or Organize and Be a Part of an Angel Investor Group funding all or part of start-up costs to initiate this fund and program with a 501(c)(3) tax exemption. Money invested in this innovative, leveraged plan serving affordable housing industry stakeholders can be the engine to accelerate development in this market segment, a very powerful multiplier blessed with grace.
Commit in a Letter of Intent to Donate from your Corporation, Foundation, Family Office, Government Agency or individually. Passion is powerful.
Lobby Your Favorite Successful Business, Foundation, Family Office, or Tax Credit Investor to donate to ahaFUND or invest in a project we are facilitating. California is blessed with many industries and leaders including tech successes who by investing in the production of affordable and marginalized housing solve issues.
Offer Your Help to Support this Program by being a part of and/or being a resource to the ahaFUND organization by serving on either on an Advisory Board, the Board of Directors of the Fund, or apply for a staff position.
Call David Kirchhoff at 415.531-2656 to discuss your interest, opportunities and how you can help.
HOW WILL ahaFUND DO THIS WORK?
AGGREGATE GRANT and TAX EXEMPT FUNDS from:
- State and Federal Agencies - California HCD and HUD
- Corporations
- Family Offices
- Foundations
- Individuals
REMOVE EQUITY SOURCING for PROJECTS as an OBSTACLE to CREATING NEW and/or REHABBED UNITS:
- ahaFUND will fund equity needs for affordable housing developers with no to low cost equity funds needed to stabilize financial proformas thereby mitigating risk to levels for remainder debt so as to facilitate creeating additional units.
PROVIDE TECHNICAL SUPPORT to FAST TRACK DEVELOPMENT
- ahaFUND will provide technical support for developers to acquire financing, enhance project design, include tenant serving services to enhance community appeal, support managing rehab and updating, and support project management.
WHAT WILL ahaFUND BRING to the TABLE?
ahaFUND CORE STAFF:
- CEO
- DIRECTOR of FUNDS SOURCING
- DIRECTOR of PROJECTS & DEVELOPER RELATIONS
- DIRECTOR of TECHNICAL SUPPORT
- MANAGER of COMPLIANCE
CONTRACTED SUPPORT SERVICES:
- Branding, Publicity, Media, and Marketing
- Brokerage and Acquisition
- Debt Financing Packaging
- Project Design
- Project Updating Management
- Property and Community Management
- Legal Advice regarding Cooperating and Technical Support Agreements, and Security Postion Documentation
WHAT QUALITIES WILL OUR TEAM EXHIBIT?
- Board of Directors will feature mature demonstrated leadership and business building successes, venture capital success, network connections among donor groups, and a desire to contribute to the success of a program to address one of the most poignant issues facing Valley and Bay Area housing for work force families, the marginalized and special needs persons.
- Visionary thinking with multidisciplinary real estate experience and success ranging from development and rehabbing, brokerage, valuation, acquisition, finance, project design, consulting, and compliance.
- Skills assisting, consulting, and coaching others to successfully achieve their goals.
- A passion for common sense real estate development and community building, simplifying, accurate thinking, and helping others.
WHERE ARE THE TARGET MARKETS?
Initially, the CA Central Valley where insufficient affordable housing is affecting economic growth
- Locations with less competition from Class A and B buyers
- Locations with marginalized demographic groups
- Congested areas in Central Valley with high rental costs or shortages
Then Silicon Valley and the Bay Area after the initial 1000 units ceated in the Central Valley demonstrate the acceleration benefits of the ahaFUND program.
WHAT IS OUR SCHEDULE, SOURCES & USES of FUNDS and INITIAL BUSINESS PLAN?
ON TRACK for 501(c)(3) EXEMPTION
- The IRS 1023 Long Form Tax Exempt Application was submitted for review by the IRS in early 2023. We expect approval of the 501(c)(3) tax exempt status by the end of 2023 or early 2024 as we are being represented by an experienced Palo Alto non-profit law firm with 100% approval at both the Federal and State levels for applications her firm has represented.
- Initial Board Membership includes three talented and experienced members with over 100 years of business and business development experience, see their summary bios at the end of this web site. Core professional Staff will be recruited and added as start up funds are received.
- We expect to begin initial funding of projects in 2024.
FUNDING GOALS, SOURCES and USES OF FUNDS?
- SOURCES of FUNDS:
- Funds aggregated by ahaFUND will come from Grants and Contributions from Government Agencies, Corporations, Organizations, whose purpose, mission and desire includes financially empowering and accelerating creating affordable housing using leveraged equity finance grants and loans. The 501(c)(3) status will provide nontaxable status for these contributions
- These entities include HUD and California HCD, Foundations, Family Offices, Corporations, Individuals, and others who understand how important affordable housing is to the health of our culture, society, economy, businesses and families.
- USES of FUNDS?
- The business expenditure plan target 95% of the funds aggregated by the FUND to be invested directly in affordable housing projects
- The 5% remaining funds will be used for overhead, administration and technical support costs assisting partner development agencies.
- START UP BUSINESS PLAN
The initial business plan subsequent to securing 501(c)(3) exemption status will include the following:
1. Source start-up funding for staffing and developing the various facets of the ahaFUND program
2. Develop digital marketing programs and presentations targeting funders and developers, establish social media, and networking to communicate the ahaFUND mission, goals and methods to attract tax exempted funds
3. Source $106M funding for an intitial 1000 units demonstrating the efficacy of the ahaFUND program with the following targets:
- 10 developers assisted
- Average 100 units each developer totaling 1000 initial units
- Average full cost acquisition at $200K per unit
- 35% required equity requires $70K per unit
- Add average rehab costs estimated at $35K per unit totals $105K/unit needed
- 5% ahaFUND admin overhead
- Totals $106K X 1000 target units = $106M tax exempt funds necessary for the intial 1000 target units
4. Create the administrative procedures regarding compliance and auditing
5. Create the technical support elements necessary to assist developers
6. Establish the ongoing program to source 501(c)(3) tax exempted funds and grants from contributors.
ahaFUND BOARD MEMBERS & OFFICERS
David Kirchhoff, Chairperson of the Board and President
Folsom, CA
Creative experienced real estate leader, problem solver, project manager, innovative thought strategist, and business builder. Extensive 30 years estate leadership & success includes, $600M brokered, $3B appraised, over $50M projects rehabbed, entitled $3.4M workforce townhome project, re-designed 24 unit $30M age restricted townhouse project to success, created affordable and workforce housing programs, 20 year elected Board member overseeing first responder CA Special District, $8.7M budget, $18M asset base, 27 staff. MBA, Harvard Business School, University of Oklahoma Graduate Studies, Public Administration, BA, San Francisco State, Hall of Fame high school rugby coach with two national high school championships and the first American high school side with victories over English, Welsh, Australian, New Zealand, Canadian and Jamaican sides.
Christopher Givens, Board Member and Treasurer
Sacramento, CA
Over 30 years’ experience as a corporate leader and executive, founder and CEO of a venture backed software company, consulting with clients including Apple Computer, Nike and Levi Strauss. In addition, he is a real estate investor and entrepreneur experienced with full cycle development with both ground up and rehab development activities including land acquisition, partnerships, fund raising, financial and pro-forma analysis, entitlements, building and selling of properties. Mr. Givens serves on several Boards including Cornerston Concilium and St. Andrews AME Church Steward Board and is a past member of the City of Sacramento Planning Commission. He holds a master's degree in industrial engineering from Stanford University, a Bachelor's degree from Sacramento State University and a Real Estate Development Certificate from USC.
Stephen Kirchoff, Board Member and Secretary of the Board
Cypress, TX
https://businessgrowthstrategy.com
Combining the business acumen of a seasoned executive with the big picture thinking of an entrepreneur, Steve has 40+ years of experience as a former VP of strategic marketing and growth planning for Fortune companies like Compaq/HP, a successful CEO of a fast growing $100m service businesses, investor and owner who has started up businesses and grown them into mid-size business, and someone who has bought 11 regional businesses and rolled them up into a national business. Steve launched successful software and services businesses in the emerging mail/office automation and web-based enterprise system management markets. Through his leadership each of these businesses generated $1B in leveraged revenue and achieved number one status in market share. Steve holds a BS and MBA and has enhanced his professional development by attending executive programs at Harvard Business School, Wharton Business School, and the University of Virginia's Darden Business School.