Justin Walker
PHOENIX—Rainbow Housing Assistance Corp., is a nonprofit that provides service-related programs for residents in low-income communities. The services provided help residents with personal development, job readiness, financial resource management, health and nutrition, and other areas tailored to the community's demographics and needs. Rainbow also helps owners offer programs that directly correlate to tangible financial benefits and to improving the asset's performance.
“Rainbow helps investors, developers and owners of affordable communities through a service-enriched housing model,” explains Justin Walker, National Director of Business Development and Media at Rainbow. “Services help stabilize the tenant population, which may reduce related expenses. Rainbow also acknowledges investor risk and provides significant oversight ensuring a financially beneficial partnership,” he tells GlobeSt.com.
Using Rainbow allows the property management team's attention to be fully devoted to leasing and maintenance. Additionally, for communities financed using LIHTC, Rainbow's programming helps to comply with regulatory agreements. This is particularly beneficial to owners wanting to submit applications for tax credits in order to build new units or preserve existing stock.
Perhaps of greater interest to owners, independent studies have shown that resident services improve the performance, return, and profitability of those properties compared to properties without resident services. Vacancy loss, turnover, security patrols, writing off bad debt, re-letting, marketing and other operational costs can all be affected by the absence of residential services.
Additionally, benefits are not limited to the property. Researchers have found that when a service-based housing complex enters a neighborhood, residents contribute to the local economy, positive relationships are built between new tenants and existing neighbors, and the community on the whole perceives no negative effects, such as reduced property values and increased crime rates, Walker says.
At bottom, self-sufficiency is Rainbow's main goal for its offerings.
“All of Rainbow's programs contribute to some form of self-sufficiency, including financial literacy. A combined approach addressing needs as they arise through an individualized plan yield the greatest results and provide residents with the best chance for long-term success,” explains Walker.
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