NC Sustainable Community Fund
Affordable Housing for Pittsboro
- The investment was secured by the land upon which the housing will be built;
- SPI considers the probability of success for a project in this area to be high since the Housing Needs Assessment Update completed by Wooten Company for the Chatham County Affordable Housing Task Force in 2008 showed that the demand for affordable housing is significant in Chatham County.
- The promissory note can be repaid by the development loan, or rolled over to finance other parts of the project.
- In addition, agents from NC Housing and Finance Agency visited the site with Brick Capital CDC and gave it a positive review.
After the initial investor, it was necessary to structure the investment differently because multiple investors were needed and an entity was needed to hold the property for collateral.
The investors formed a member-managed Limited Liability Corporation (LLC), which became the NC Sustainable Community Fund, LLC. The fund secured deed of trust to manage the aggregated community investment in common. Each investor owns a percentage of the LLC that equates to the amount of capital and/or equity invested. The initial fund is managed by Dr. Sally Goerner and members inlcude a wide range of individuals who favor good cause investing including former Carrboro Mayor and State Senator Ellie Kinnaird.
Gary Phillips has served as an advisor to fund since 2014.
Investment vehicles of this type can ceratinly play a positive role in communities across the country and require competent legal and professional advice.