Sacramento Housing Renovation Program
GJ Holding Community Development Corporation partnered with the City of Sacramento on the first of its kind Social Impact Bond!
GJ HOLDING CDC and the city of Sacramento have agreed to setup a Social Impact Bond for the purpose of rehabilitating and repairing abandoned residential properties in the City.
GJ Holding Community Development Corporation will facilitate the program from acquisition to the sale of the properties. Families who are participating in Financial Enrichment Association, a local financial services program with other nonprofit partners, will be given the first opportunity to purchase the homes through the Home Buyer program.
The Social Impact Bond are an emerging strategy which blends private investments and with projects that generate a positive social impact. Investors purchase the bonds to fund programs designed to address social issues. If the program is successful and earns a profit as a result, the profits are used to repay the investors and help continue the work to tackle social problems.
“This program will accomplish the important task of acquiring and rehabilitating distressed homes in order to improve neighborhoods and provide safer and more affordable housing for Sacramento residents. “The City will, as a whole, benefit from the practice of social impact investing because the bonds are paid solely from the revenues generated from the sale of the rehabilitated properties.”
Sacramento Code Enforcement Department currently manages more than 100 blighted, abandoned properties, keeping them boarded up, cutting weeds, removing illegal dumping etc. This costs the City of Sacramento approximately $7,000 per house annually.
The program has several goals:
- Create clean, safe and decent housing – appropriate to neighborhood
- Provide opportunities for First Time Home Buyers through Financial Enrichment Association
- Stabilize neighborhoods
- Create Social Impact Bond Financing Model to recycle funding to maximize number of housing units in the program
- Increased neighborhood homeownership rates
- Reduced code enforcement costs and police calls for service
- Stabilized neighborhood property values
- Increased property tax revenue for the City of Sacramento
GJ Holding Community Development Corporation, Financial Enrichment Association and SHRA.