Shared Equity Approach

The Shared Equity model joins responsible low-income (or moderate-income) families (the "Owners") with social minded investors (the "Investors").  ECD focuses on private investments solutions (to replace and/or augment government subsidized solutions), utilizing shared equity products in two primary ways

Existing Inventory Private Shared Equity.  Private Investors make equity investments into a home alongside the Owner.  Elevate assists in locating, and structures the acquisition of the home to meet both the Owner's goal of building wealth through homeownership, as well as the Investor's goals of social investing and wealth preservation. This is accomplished primarily through a simple (but proprietary) equity sharing option agreement (our "SEO Agreement"). 


Developed  Inventory Shared Equity .  This is the same as above, but there is a first step, which is to acquire or develop the unit first.  When ECD's investors invest in an ECD development, the Investor agrees that the Project will sell more units than would otherwise be required under local housing ordinances to Low and Moderate Income persons (these are "Additional Social Impact Units").  These Additional Social Impact Units will utilize our SEO Agreement  (in which case a portion of the Investor's money is rolled into the SEO Agreement) or other available shared equity-type products (for example, the State of California offers a Shared Appreciation Loan for low and moderate income persons). 

Some of our Investors may actually be through a hybrid or quasi-governmental sources such as New Market Tax Credits.  In this case, the investors are private, but they are offered incentives from the government through tax credits; and  ECD finances or invests in projects that that offer units for sale to low-income (or moderate-income) families, specific to pre-approved regions.