Affordable Housing and Its Impact on Resident Health

Rainbow provides a custom solution to every asset served.

PHOENIX—Rainbow Housing Assistance Corporation is a nonprofit organization that provides service-enriched housing programs for residents of rental housing communities throughout the country. Services that focus on community and promote the self-sufficiency of residents have been proven to increase the financial viability of multifamily assets. Rainbow’s services can be implemented to perform for any population or demographic, preserving quality, affordable housing for those who need it most. Flynann Janisse , executive director of Phoenix-based Rainbow Housing Assistance Corporation, recently spoke with GlobeSt.com about the impacts of affordable housing on residents and owner/investors. GlobeSt.com: How does investing in health and wellness programs aid in creating more economically stable communities and positively impact the ROI for owners/investors? Flynann Janisse: Investing in community-based health care initiatives with ease in accessibility would allow for the repositioning of those financial resources to sustain housing. The cost of healthcare is well documented to increase at a much faster rate than income growth. In short, healthy lifestyles and economic performance are interlinked. Therefore, it is safe to assume an investment in health and wellness programs may aid in creating a more economically stable community, in turn, positively impacting the performance of an asset through the stabilization of the tenant base, securing a return on the strategic investment. GlobeSt.com: What is the connection between quality/affordable housing and the mental/physical health of residents? Janisse: Quality affordable housing and its connection to the mental and physical health of residents could first be identified by the need. Qualified affordable housing is contingent upon the set aside of housing units at or below average median income levels. A significant percentage of qualifying low-income households are chronically homeless, including aging populations, veterans, unemployed or underemployed and those with physical or mental disabilities. By and large, the most vulnerable tenant populations reside in affordable housing. For those with limited resources, quality, affordable housing provides an alternative to other housing options and supports the sustainability of housing for those qualified. In turn, those living in affordable housing are offered independence, and in many instances, an improved quality of life. GlobeSt.com: What types of health-related services and programs provide the best ROI for owners/investors? Janisse: Healthy communities offer a variety of resources to support the social, physical and emotional well-being of an individual or family. Health-related services may range from an after school program that offers a nutritional snack and academic focus, to mobile health clinics providing onsite medical care such as HIV and pregnancy testing, regular check-ups, exercise programs and dental work. Connectivity to programs and services that offer free or low-cost alternatives to healthcare needs removes financial barriers for residents. All of these things can be uniquely delivered onsite in communities offering a service-enriched housing model. The return on investment is simple: resident retention. GlobeSt.com: What funding options are available to owners/investors to aid in implementing service-enriched housing programs? Janisse: Funding options available to owners/investors for implementing service-enriched housing are limited. Although uncommon, social impact bonds designed to “Pay for Success” are being accessed as a new source of financing to achieve improved social outcomes through the investment in human capital initiatives. Where opportunities are available to partner with a nonprofit with the proven ability to secure tax exemptions, a substantial financial savings could aid in funding services. It is best to determine the potential needs of a demographic in the development stages of a project and budget for the associated cost. Designing and implementing a robust supportive services program will offer resident retention and promote value-based living which, in turn, positively influences the core factors that drive income and expenses. It is important to note, base rent increases are being considered for the provisions of services as a valuable amenity. By design, affordable housing was created with the understanding it would house low-income resident populations. With this in mind, owners/investors must recognize the tenant population will require support to stabilize and sustain this housing. Developer fees and tax credits awarded may arguably be the financial benefits for investing in human capital to preserve affordable housing.