Boise is bringing in an out-of-state firm to help stand up a revolving loan fund for affordable housing.
On Tuesday, Boise City Council selected New York firm Forsyth Street Advisors to help with a three-phase plan to build a fund focused on creating new housing for low-income Boiseans and preserving existing homes. Boise selected the firm through a competitive bid process over Ketchum-based company Public Advisory Group and Portland-based ECONorthwest.
An affordable housing loan fund would provide low-interest financing to private or nonprofit developers who need help raising funds to buy or build affordable housing products. The city or the loan itself would not own the housing this money would help create. The fund also would revolve, allowing money paid back from the developers (with interest) to generate a return for investors and help fund future loans. Loans would come with the stipulation that rents remain affordable.
The City of Boise would seed funds, but it could also contain investments from the private sector and philanthropic donations.
After each of the three phases, the city would have the option to stop the project entirely or select a new vendor if it chooses. Work on implementing the plan is expected to conclude by August of next year. If all three phases are complete, the study will cost the city an estimated $230,000.
City council members did not discuss their choice of Forsyth Street at length. Still, council president Elaine Clegg noted they wanted an out-of-state firm to bring in experience currently unavailable in the Gem State. Forsyth was the highest-ranked firm out of the three applicants.
“Given the importance of this project and the necessity for expertise that may not be in this market, I would move we accept the highest rated proposer…,” she said.
What are the three phases?
Forsyth will start by studying the feasibility of a fund and then, if it’s feasible, move toward helping set it up.
Local market study
The first phase, set to begin immediately, will start with a local market study to determine what financing for affordable housing is available in Boise and identify any funding gaps such a fund could fill. During this phase, Forsyth would meet with local developers looking to build affordable projects to determine what barriers they have and how different types of funding from a revolving loan fund could help.
Structure
If Forsyth gets the go-ahead to start the second phase in December, the firm will develop a proposal for “an appropriate legal and operating structure” for the fund. This likely wouldn’t be operated by the city and instead would be its own nonprofit or a limited liability company connected to an existing organization or something in between. Forsyth will also identify possible funding sources to start building the fund.
Launch
The third phase, which would begin in April of next year, would include the work of starting up the fund, gathering funding, and launching the lending program.
Nicki Hellenkamp, Mayor Lauren McLean’s housing advisor, said Forsyth’s experience launching these types of funds in cities nationwide would help bring a bring boost to the city’s effort to consider launching one of its own. She said the layers of financial backing and the complication of it being seeded by city money but funded from various sources brings a “level of financial complexity” the city wanted experts to help unravel.
“We’re really excited that Forsyth Street applied,” she said. “They do have a lot of expertise doing this other parts of the country, and it’s exciting to be able to explore this, and whether or not it ends up being something we move forward on, we want to make sure we’re exhausting all leads in terms of how we can go about addressing housing affordability.”
could help finance projects with affordable rent & Latest News Update
could help finance projects with affordable rent & More Live News
All this news that I have made and shared for you people, you will like it very much and in it we keep bringing topics for you people like every time so that you keep getting news information like trending topics and you It is our goal to be able to get
all kinds of news without going through us so that we can reach you the latest and best news for free so that you can move ahead further by getting the information of that news together with you. Later on, we will continue
to give information about more today world news update types of latest news through posts on our website so that you always keep moving forward in that news and whatever kind of information will be there, it will definitely be conveyed to you people.
could help finance projects with affordable rent & More News Today
All this news that I have brought up to you or will be the most different and best news that you people are not going to get anywhere, along with the information Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links