Bay Area Ross Program
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This document summarizes Ed Donaldson's experience one year after graduating from the Bay Area Ross Program. It discusses his roles at the San Francisco Housing Development Corporation and APD Solutions, and how they relate to issues like the Hope SF initiative, opportunities in socially responsible real estate investing, and using public-private partnerships to address the housing crisis. The document advocates leveraging private capital to solve problems in underserved communities through models like those used in Assembly District 62 in San Bernardino. It concludes by discussing opportunities for Bay Area Ross graduates in areas like socially responsible investing and helping communities through their professional networks.
Bay Area Ross Program
- 1. Bay Area Ross ProgramA Student’s PerspectiveOne Year Later…By: Ed DonaldsonBay Area Ross Graduate 2008SF Housing Development Corp APD Solutions, LLC4439 Third St 201 Spear St. Ste 1150S.F., CA 94124 S.F., CA 94105415.822.1022 Ext 112 415.329.5437www.sfhdc.org www.apdsolutions.comed@sfhdc.org edonaldson@apdsolutions.com1
- 2. Background InfoSan Francisco Housing Development CorporationAffordable Housing Developer/Southeast S.F.Housing Counseling DirectorCertificate of Preference LegislationS.F. Fair Lending Working GroupAPD SolutionsNeighborhood Revitalization FirmPartnerships with NSP recipientsReal Estate Financing & InvestingResidential & Commercial LoansSmall property investingAsset Based FinancingPurchase accounts receivablesWorking capital needs of small/mid-sized businessesPSE Options BrokerDerivatives MarketMarket crash of 1987
- 3. Win/win outcomes between developers, local gov’t & communities.How to better interpret the real estate cycle.Opportunities depending on stage of real estate cycle.Capital investments and social enterprises. What I Took Away From Program?
- 4. Hope SFCity of SF Initiative to Rebuild Public HousingUncertainty of Hope 6 federal funding.Limited local funding.Public/Private partnerships with developers.Great idea!!!!!Community ContextHistorically, neglected neighborhoods.Some of the worst public housing in the country.History of resident displacement: Urban Renewal.Somewhat paternalistic. Win/Win Outcomes
- 5. Right to Remain LegislationProtection residents from displacement
- 8. Mayor Newsom & Supervisor Maxwell support idea.
- 9. African American Out-migration Taskforce report.
- 10. Discussions with MOH, SFRA, SFHA, & Supervisor Maxwell.As Imagined…Some Challenges…Must compliment Uniform Relocation Act.
- 11. 40% of all residents may not return anyway.
- 12. Parties speak different languages.
- 13. Community folks don’t fully understand development.
- 15. Lack of trust. Win/Win Outcomes
- 16. My Role in the HopeSF DiscussionsHelp to bridge the language barrier.
- 17. Help parties to remain focus on intended outcome.
- 18. Educating activist about the development process.
- 19. Creation of housing options for residents when/if off-site relocation is necessary.
- 20. SFRA , MOH & SFHA new/existing inventory of housing.
- 21. Acquisition of some of the over 600 homes now foreclosed in S.F. Win/Win Outcomes
- 22. “When money starts chasing deals vs. deals chasing money…We are at or near a top in the real state market”.
- 23. Significance of “Rent Spike Box”.
- 24. Opportunities with unwinding bad loans.Residential & Commercial Loan ModificationsBulk purchase of REO properties and Distressed loansSocially Responsible Investment funds focus on doing this work. Real Estate Cycle & Opportunities
- 25. APD SolutionsNational Neighborhood Revitalization FirmPartnership with Socially Responsible Investment Fund.Partnership with NSP recipients to acquire REO properties.$6 billion to cities/nonprofits to buy foreclosures.Direct access to the capital markets and trading desks.Able to assist with challenges/needs specific to S.F.Over 600 foreclosed homes with 2,200 of “shadow inventory”.Assist with relocation for HopeSF.Mitigate projected property tax decrease of $129 million.HUD-Approved Counseling AgencyFinancial fitness, Homebuyer & Foreclosure Counseling400 new clients and over1,000 counseling sessionsDo more with less to meet increased needs of clients10,000 new homes in the next 10 yearsOver 600 existing foreclosed home2,200 homes within shadow inventoryNeighborWorks Member AgencyNHSA/Freddie Mac secondary market partnership $100 million loan fund with banking partnersAcquire/Rehab 120 homes per year for low/mod familiesAcquire distress loans and negotiate modificationsWithin 3yrs 50% of budget from earned revenue sourcesSFHDC as a Social Enterprise
- 26. City of San Francisco: $500 million deficit.
- 27. State of California: $21 billion deficit.
- 28. Private Capital: $ 173 billion on sidelines.
- 29. The $64,000 Questions?Can we leverage private capital to help solve current housing crisis?Can we leverage political influence to support the use of private capital in solving housing crisis? Create public/private partnerships to solve housing crisis. Capital Investments & Social Enterprises
- 30. State Assembly District 62: San Bernardino AreaAssemblywoman Amina CarterAssembly Speaker Karen BassOver 7,000 existing foreclosed properties 21,000 homes in the shadow inventoryLeveraged $300 million public/private capital$100 million in committed fundsLocal stimulus for community partnersNPO’s identify buyers, renters and lease-to-own clientsModel can be duplicate around CaliforniaPartnership with APD Solutions to acquire propertiesExample of Public/Private Partnership
- 31. Being in the forefront of discussions on Socially Responsible Investing in Bay Area.
- 32. Leverage our respective skills to create a Socially Responsible Investment Fund.
- 33. Use of public/private partnerships to solve problems in underserved communities.
- 34. Build a strong network among Bay Area Ross Graduates to rival other alumni groups. Opportunities for Ross Graduates