, sees private funding as a way to unlock the advantages of streamlined production.
Among the wide array of actors seeking a social impact solution to homeless housing, there is no single “private sector” model.Some envision the public and private sectors working together, with land acquisition, loan guarantees or other boosts from government supplementing private capital.
What distinguishes them all from the prevailing model of government-subsidized housing is that the money comes first. Former journalist and foster youth advocate Daniel Heimpel hopes to tap several hundred million dollars from private foundations to produce housing for 2,000 young adults leaving the foster care system.
The restriction, meant to protect residents from high concentrations of air pollutants near freeways, can conflict with the goal of housing people who live outdoors, often on freeway embankments and underpasses, White said. Pete White’s plan for the knife-shaped lot calls for 11 free-standing structures in the blade portion of the lot, leaving room for a community garden on the handle.
More commonly, though, projects built with social impact investments rely on government rental subsidies to sustain their operation. When SoLa or CDS Capital finances a building, their cash flow projections depend on rental subsidies, either federal or local, to pay off debt and provide a return to their investors.
Both groups have forged relationships with service providers such as Homeless Healthcare LA and Homeless Outreach Program Integrated Care System to lease buildings and provide services.
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