A Creative Model for Individuals to Invest in Supportive Housing for Families
About
HOP House, LLC was formed to provide families in Palm Beach County supportive housing in conjunction with Hearts of Palm Ministries at St Mark’s Episcopal Church.
HOP House’s initial funding came through Fred Schwartz and Mary McFarlane, because of their passion for the ministry and long affiliation with and love for St Mark’s.
HOP House purchased a house in West Palm Beach in 2017.
St Mark’s rents the house from HOP House for an amount approximately equaling the property taxes and insurance. Therefore, there should not be any “out of pocket” expenses for HOP House.
St Mark’s, through its Hearts of Palm Ministry rents the house to families in need. The below market rent they receive is more than the amount of rent they pay to the HOP House. The difference creates monthly cash flow for the ministry.
Benefits
Financial Benefits
For the investor, there are several financial advantages to investing using the HOP House model.
- Funds are returned at the time of sale of the house – this is an investment, not a donation
- There is a potential upside of appreciation
- Pass through tax treatments are currently used by the LLC
- Typical risks associated with rental real estate are minimized because of a reliable tenant
Community Benefits
In short, this model provides housing for those who need it.
- Families live in housing that otherwise would not be available to them
- Churches have a tangible ministry they can call their own
- Neighborhoods are integrated with families of varying household income
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