Holmes 414

Housing is Elementary

Affordable housing should not be a mystery. This is a case we can solve. Currently, the issue of affordable housing is largely addressed with single family home ownership.  There are many reasons why someone may not want to, or be able to, take care of a house. Affordable apartment living is often driven by the ability to pay, but the number of available units are few. The market is not serving our community.

What is Non Market Housing?

Non market housing exists to provide affordable homes for members of the community, not to make a profit.  This is not a new idea. It exists in other countries and has for centuries. The purpose of Holmes 414 is to increase an amount of affordable housing not tied to market rates.  Holmes 414 plans to purchase existing apartment buildings to rehabilitate, using a similar model to Habitat for Humanity.  

Rents will be determined by the costs of the building; financing, taxes, insurance, etc. The goal is to increase equity and grow availability over time. As financing is paid off rents can be adjusted based only on operating and maintenance costs.  Equity can also be used to increase the number of buildings.

What are the benefits?

The short term benefits are rent control, stability, and transparency.  If the rent changes, tenants will be able to see each line item that changed the rent.  One reason they will never see is: the landlord wanted to make more money.  There is potential to have greater control over the interior of the homes, like the ability to choose any decor, install shelving, even alter some aspects of the interior.  Any major changes would require members to work with Holmes 414 and structural changes are beyond the scope of remodeling. If a sponsor wanted a building structure modified, that would need to be considered at the beginning.

Who is in charge?

Initially Holmes 414 will be charted as a ‘for profit’ entity.  This is because there are fewer barriers to starting a for profit enterprise.  I am unaware of any additional barriers to converting a company from a ‘for profit’ to a ‘non profit’. A corporation is only a legal structure with a fiduciary responsibility to its owners, and a responsibility to follow the law.  The owners determine how the company conducts its finances.  Similar to a credit union, tenants will have a share and can vote on how things are done.

How do I get my equity back if I need to move?

You don’t, same as any other apartment.  Holmes 414 retains any and all equity for posterity.  There may be a sort of ‘deposit’; To Be Determined.  Holmes 414 is not designed for individual profit. This plan is in the spirit of George Bailey’s Building and Loan from the classic Christmas movie “It’s a Wonderful Life”.  Organizations could sponsor a building remodel. Investors could deposit funds which would then be used as collateral for financing. In fact, a credit union partner would be ideal.

Leaving a Legacy for the Future of the Community

Ideally, we need people who see the value in planting a grove of fruit trees they will not harvest.  People who understand they are doing something for the future of the community.  Their names may be commemorated if it is thought proper to do so.