Many nonprofits suffer from the threat of displacement because they do not own their building, and many communities suffer from gentrification because of rising real estate prices. This program aims to preserve and protect nonprofit and community real estate assets through our short-term acquisition solution. If an at-risk facility is identified and Sharing Connexion has the capacity to purchase to “save” or “preserve” the asset, then Sharing Connexion will purchase the asset for a short-term holding period, lease it to the non-profit acting as a mission-minded property owner for a determined period of time and then sell it to the nonprofit occupant (or a selected housing organization if the project is affordable housing preservation).
The sales price will be determined from the onset and will not factor in an increase in market value over time; holding the valuation constant is part of our charitable intent to assist and support nonprofits. Sharing Connexion does not desire to be a long-term property manager. This short-term holding period gives the nonprofit or housing organization sufficient time to conduct fundraising and/or financing that may not otherwise be secured quickly enough for purchase. In certain cases, Sharing Connexion may explore a rent to own model instead. Contact us to discuss how we might be able to help.
Case Study
Montevista Comunidad - A Sharing Connexion Community
Sharing Connexion Inc. (SCI), acquired, stabilized, and cured significant deferred maintenance at a 78-year-old mobile home park in Denver’s Westwood neighborhood, preserving 76 naturally occurring affordable housing units and preventing the displacement of 278 residents.
Under Colorado’s Mobile Home Park Act, residents are granted a priority right to purchase their park in the event of a sale. In this case, however, unresolved zoning issues and the lack of financing guarantees ultimately cause the residents’ purchase effort to fall through. A New York Hedge Fund then moved to acquire the property, posing a near-certain rise of increased site rents and widespread displacement.
In response, Sharing Connexion Inc. through its Real Estate Rescue Program (RER), stepped in with an innovative solution. The RER program is designed for short-term nonprofit (or in this case community) ownership to stabilize the property and preserve affordability, with the long-term goal of transitioning ownership to the residents.
This project required navigating a wide range of complexities while embracing and balancing the priorities of multiple stakeholders.
Key Outcomes Include:
- Secured affordability for the next 60 years by applying AMI-based rent standards
- Maintaining current rent levels for as long as financially feasible
- Preserving residents’ access to jobs, schools, and long-standing community ties
- Prevented a disruptive sale and displacement scenario
We are proud to have protected and empowered this vibrant community formally called Capitol City Mobile Home Park, now known as Montevista Comunidad.
For more information, please see the attached press release: CCMH_Montevista_PressRelease_5-1-24.docx
