Springboard Nonprofit Consumer Credit Management, the Riverside-based housing and financial counseling agency with offices in seven states, has announced a joint venture with Money Management International of Texas.
The two entities, which formed a partnership to buy an affordable housing complex in Florida, have each chipped in a total of $2.5 million to raise investment capital for a $25 million affordable housing initiative across the U.S.
Springboard chief executive Todd Emerson described the joint venture with the Sugar Land, Texas, nonprofit as a "game-changer" for the industry.
Lyle Lansdell, president of Springboard Housing, an affiliate of Springboard, said the initiative is predicated on the premise that 12 million American households are paying more than 50 percent of their gross income on rent.
The newly purchased complexes would take rent down several notches, and offer social service training and financial literacy classes, as well, with the object to make living affordable for low- to moderate-income individuals and families.
In some cases, the renters will be put on a path to home ownership.
Five communities, each with 100 to 200 units, were eyed in June for potential acquisition by Springboard Housing in Phoenix, Lake Charles, La., Baton Rouge, La., Biloxi, Miss., and Tampa, Fla.
Outside of the $25 million initiative, Springboard and Money Management International have already joined forces to close escrow on the Seminole Ridge, a 240-unit development in Orlando, Fla. The $12.5 million sale is expected to close in late November, Lansdell said.
Money Management International decided to form the joint venture with Springboard while partnering on the Seminole Ridge acquisition, he added.
Money Management International chief executive Ivan Hand said the partnership creates a unique opportunity to tie the need for affordable housing with financial counseling. "As an organization that has assisted nearly 600,000 struggling consumers since the beginning of the financial crisis, we understand the hardships," he said.
"We are excited to lead the charge on this important initiative," Emerson said.
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