In 2023, LISC Houston made significant strides in supporting nonprofit housing developers through the Real Estate Capacity Building Grant. This initiative aimed to empower organizations with technical expertise, training, technology upgrades, and opportunities to cover costs to spur development projects. By investing in these areas, the grant helped organizations enhance their real estate operations, preparing them to increase housing production and pursue government funding for housing development and preservation. Here are the highlights from our partners who benefitted from this grant in 2023, and some of the challenges they were able to overcome.
VN Teamwork
VN Teamwork focused on boosting their real estate capacity by engaging attorney Neal Rackleff from Rackleff LLP for specialized training. This initiative enabled them to enhance their staff's expertise in managing properties and navigating complex tax credit processes, positioning them for future growth. As a result of these efforts, VN Teamwork successfully preserved 306 units of affordable housing in 2023, contributing significantly to the community's housing stability.
Agape
Agape utilized the funds to cover professional services for environmental assessments, crucial for securing land for new housing projects. Their efforts led to the construction and sale of 16 new homes, despite facing challenges like rising interest rates and the need for intensive homeowner counseling. Agape's commitment to revitalizing neighborhoods and improving tenant quality in their properties has made a noticeable impact, as acknowledged by local residents. Furthermore, their diligent efforts led to the preservation of 91 units in 2023, significantly bolstering the availability of affordable housing in their community.
New Hope Housing
New Hope Housing allocated their grant towards environmental and geotechnical investigations, ensuring that their housing projects meet high standards. They integrated city-required inspections into Procore software, streamlining their processes and preventing potential failures. This optimization not only improved their operational efficiency but also enhanced their capacity to manage more construction projects seamlessly. Among their achievements in 2023 is the Savoy in Houston's Gulfton/Sharpstown neighborhood, a four-story community featuring 120 one-, two-, and three-bedroom apartment homes. This project contributed to the preservation of 1,578 affordable homes, significantly impacting housing accessibility in the area.
Houston Habitat for Humanity
Houston Habitat for Humanity invested in ProBuild, a new construction software that allows them to manage multiple development projects simultaneously. This technology integration has enabled them to build and repair homes more efficiently, identifying cost savings and expanding their construction capacity to include infield lots and new developments like Robins Landing. In 2023, their enhanced capacity resulted in the construction of 22 new homes, the preservation of 56 homes, and the completion of repairs on 34 homes, significantly impacting the housing stability in their community.
Tejano Center
The Tejano Center used their grant funds for professional soil testing services, essential for their single-family housing model's engineering plans. This year, they successfully completed the Sunrise Lofts, providing 89 efficiency units of supportive housing for individuals aged out of foster care. Additionally, their broader efforts in the community led to the preservation of 65 existing senior housing units, and 21 repaired homes, further demonstrating their commitment to improving housing stability and quality for diverse populations.
Fifth Ward Community Redevelopment Corporation
Fifth Ward CRC effectively utilized their grant to cover professional service fees essential for Phase I of their small NOAH acquisitions, allowing them to expand their portfolio of affordable housing. They also invested in a project management and development software subscription, which streamlined their operational processes, improving efficiency and project oversight. Additionally, Fifth Ward CRC focused on building the capacity of their staff through specialized training and technical assistance tailored to real estate management. These strategic uses of the grant resources have bolstered their capability to manage and expand affordable housing projects. As a result, Fifth Ward CRC was able to preserve 90 units of affordable housing in 2023 directly contributing to the community’s development and stability.
Through these grants, LISC Houston's partners have not only expanded their capacity to deliver more housing options but also strengthened their ability to sustain and grow their real estate operations. This investment in real estate capacity promises to yield long-term benefits for housing development and preservation in Houston.
Gleaning from last year’s learnings, in 2024 our overarching strategy is to strive to pool funds from diverse sources that can support a wide range of housing projects and ensures a stable foundation for our partners to scale their operations effectively. We remain committed to fostering a cohesive ecosystem that supports sustainable and affordable housing/community development across the region.