OPPORTUNITY LENDING FOR IMPACT

Urban Hope wants to meet the urgent need in our community to create affordable housing for our very low-income neighbors.  We have an innovative strategy that aims to create significant positive community impact through the use of loaned private capital.

The Problem? Most affordable housing projects in our current context are meeting the needs of households above 60% Area Median Income (AMI), but Richmond’s eviction problem and housing crisis demands solutions for families below 60% AMI as well.  Urban Hope invites you to join us in addressing what cannot be solved with traditional affordable housing tools.

Urban Hope’s Solution with Opportunity Lending:

The Method? Urban Hope’s debt offering of a promissory note that earns 2.5% annual interest for five-year terms enables us to purchase, renovate and build affordable homes to rent to neighbors making less than 50% AMI.  After five years, we refinance portions of our property portfolio with long-term institutional debt, taking advantage of equity to repay our shorter-term lenders.

The Terms?

INVESTMENT          Any amount, $20,000 minimum, $150,000 enables one additional affordable unit

SECURITY                Promissory note

TERM                       5 years

RATE                        2.5% annually

*OPTIONS                   Lenders can opt to engage in a longer-term note, with the first years accruing no interest until the final five years of the term at the standard 2.5%. All other terms apply. This option provides a significant benefit to UH for acquisition and renovation, allowing time for properties to generate income before interest payments begin to come due. Lenders can also opt to take charitable deductions in place of interest payments for the amount of the interest payment forgone.

Is it safe? Urban Hope has never missed an interest payment since the beginning of our first capital loan in early 2018. As of March 2023, we owe $2.9M on property that is worth $5.3M in tax assessed value.  We have successfully paid off 5 shorter-term lenders, converted two 4-unit properties to long-term debt, and served over 120 clients in our 23-year history.  Urban Hope is a safe bet for lending your extra capital to do immeasurable good in our community

Who benefits? We believe everyone benefits when we seek interdependence to create a healthy and flourishing community for all.  When a family cannot afford their home, all other goals become less attainable.  Through your loan, you help provide the essential cornerstone for an individual or family to feel safe, to seek opportunity, and to improve the conditions of their lives. 

Invest in opportunity, invest with Urban Hope.