Community Housing Partnership Fund (CHPF)

The purpose of the (CHPF) would be to provide affordable/ workforce housing (ownership and rental) along with affordable adult/senior housing, (ownership and rental) in cooperation with the CDMAC local initiatives program.

 

Community Housing Partnership Fund Potential - Massachusetts

 

 

Total                       % of                                               Monthly           Monthly                  Yearly                                                     

Workers             Workforce         Membership      Investment             Total                    Total          

 3,000,000   X         

                                 10%                  300,000       $       20.00        $   6,000,000     $    72,000,000

                                 20%                  600,000       $       20.00        $ 12,000,000     $  144,000,000  

                                 40%              1,200,000        $       20.00        $ 24,000,000     $  288,000,000

                                 60%              1,800,000        $       20.00        $ 36,000,000     $  432,000,000

                                 80%              2,400,000        $       20.00        $ 48,000,000     $  576,000,000

                               100%              3,000,000        $       20.00        $ 60,000,000     $  720,000,000

 

  • Monthly investment of $20.00 will be shared between the Employer and employee evenly.

 

 

 

Uses of Funds:  The community housing partnership fund will be designed to create partnership opportunities thru the CD-MAC in order to provide housing that is available and affordable for today’s working class and tomorrow’s retirees.

 

Typical investment:   Land purchase, site development and home construction.

 

Investment Partners:  Participating local and regional banks and credit unions in conjunction with the Community Reinvestment Act.

 


 

 

Community Housing Investment:

 

The third key element of the program is investment by the banks in the Community Housing Partnership Fund (CHPF), which will be

used for the creation and preservation of affordable ownership and cooperatively owned rental housing.

 

This fund will make investments and generate returns for its bank investors.

 

The Community Housing Partnership Fund:

The purpose of the (CHPF) would be to provide affordable/ workforce housing (ownership and rental) along with affordable

adult/senior housing, (ownership and rental) in cooperation with the CD-MAC local initiatives program.

 

Assuming the Community Housing Partnership Fund received $2 billion of the $10 billion bank investment for Massachusetts, the

economics would be as follows:

 

 

Total Funding for CHPF ($2 Billion Dollars)

Projected Return on Investment Per Year

 

ROI                                   Total Investment                         Yearly ROI

6%        x                        $2 Billion Dollars          =           $120 Million Dollars

 

              Division of Income

Participating Banks/Lenders                   50%     or           $60 Million Dollars

HMRT   (retained and reinvested)           50%     or           $60 Million Dollars

 

 

The CHPF Program will be established by region with each region having its own Board of Directors, i.e.:

  • Southeastern Mass, to include Cape Cod & Plymouth County along with Bristol and Norfolk County.

 

Repayment: Schedule A

Second Mortgage Re-set Program

Original Mortgage                       $ 300,000.00

Buy-down amount                           75,000.00

Reset Value/Mortgage              $ 250,000.00

                                                                                        3%               Repay

                                                            Value           Appreciation        %          Repay                            Cummulative

Value/Appreciation – Year 1     $   231,750        $  6,750                           80%       $               5,400                $   5,400

Value/Appreciation – Year 2     $   238,703        $  6,953                           80%       $               5,562                $ 10,962

Value/Appreciation – Year 3     $   245,864        $  7,161                           70%       $               5,013                $ 15,400

Value/Appreciation – Year 4     $   253,239        $  7,376                           70%       $               5,163                $ 21,138

Value/Appreciation – Year 5     $   260,837        $  7,597                           60%       $               4,558                $ 25,696

Value/Appreciation – Year 6     $   268,662        $  7,825                           60%       $               4,695                $ 30,391

Value/Appreciation – Year 7     $   276,772        $  8,060                           50%       $               4,030                $ 34,421

Value/Appreciation – Year 8     $   285,023        $  8,302                           50%       $               4,151                $ 38,572

Value/Appreciation – Year 9     $   293,574        $  8,551                           50%       $               4,275                $ 42,847

Value/Appreciation – Year 10   $   302,381        $  8,807                           50%       $               4,404                $ 47,251

 

    Total Repayment – 10 years                                                                                  $             47,251

    Total number of mortgages                                                                                                200.000

 

              Total amount repaid                                                                                    $ 9,450,193,515

 

 

*Note: Payback period will change based upon the buy-down amounts and fluctuation in appreciation rates.  Also, payback will be shared

equally by the homeowner, The Community Housing Partnership Fund and The Massachusetts Business Exchange.  This will contribute to the stabilization of home values, the creation of new business and job opportunities while encouraging production of new housing that will be available and affordable to working class Americans and future retirees.

 

                              

 

   

    

 

     Community Development Mortgage Alliance Corporation --- CD MAC is a US 501C-3 Non Profit Corporation

 

                 CD-MAC is a US 501-C3   Non – Profit Corporation     Robert E. Minichielli Director   781-831-5764

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