Affordable housing purchased by social investors allows low-income earners to find community-oriented housing from Marin County, Calif., to New York City.
Tony Avelar/The Christian Science Monitor
Leave it to a housing market flat on its back to encourage strange bedfellows. Affordable housing advocates and upscale California communities? Educators and inner-city neighborhoods?
It’s all part of a silver lining emerging from America’s worst housing downturn since the Great Depression. Foreclosure may be throwing millions of homeowners out of their homes, but some socially responsible investors are trying to tap the housing crisis to better their communities.
“There’s been quite a bit of interest in the last six months to a year simply because the pricing has adjusted,” says Edward A. Mermelstein, who runs a corporate and real estate law firm in New York as well as a development company trying to place public schools in foreclosed commercial property.
“Projects that didn’t make sense before do now, and there’s a lot of governmental interest in pushing this forward.”
Affordable housing in a place like Marin County, Calif., north of San Francisco, is almost an oxymoron. The median home sale price is about $679,000 – and that’s after the housing crash. Teachers, waiters, and receptionists typically can’t afford to live in the county where they work. But $679,000 represents a rare opportunity for Thomas Peters, head of the Marin Community Foundation (MCF). The $1 billion foundation had been active in affordable rentals, among other charitable activities. The plunge in real estate prices offers a chance to break into ownership.
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