Concept Note

Name of Project/Organization:

The Lease Collection

Address

137 National Plaza #300 Oxon Hill, MD 20745

Organization type

Partnership LLC

1 The Organization

Lease Collection is a local Real Estate Management, Leasing and Sales Company. We offer professional property management services to residential landlords in Washington D.C., Maryland & Virginia areas. Our goal is to acquire and manage multi-unit housing communities (distressed or renovated), and offer affordable housing in addition to small business education and community volunteering/job opportunities via partnership with DC and/or MD housing programs.

As a new property management company who implement technology and creativity, we realize many past generation landlords aren’t equipped with the tools, experience or interest in managing or maintaining low-income housing communities. As a result, these communities continue to lack education opportunities, maintain habitable living environments through lack of staff or neglect to common area issues and eventually deteriorate causing an eye sore within the community. With our young, creative, innovative team and business model, we plan to self-manage and acquire our own multi-unit real estate assets, offer low-income housing opportunities and creative educational incentives for individuals to become independent and self-sufficient.

2 Background and Justification

The United States is facing an affordable housing crisis. It’s affecting Americans across the income spectrum. The National Low Income Housing Coalition found in 2018 that a renter working 40 hours a week and earning minimum wage can afford a typical two-bedroom apartment (i.e., not be cost-burdened) in exactly zero counties nationwide.

Harvard researchers found that in 2016, nearly half of renters were cost-burdened (defined as spending 30 per cent or more of their income on rent). Even some high-income earners in expensive coastal cities struggle with rent. Nearly two-thirds of renters nationwide say they can’t afford to buy a home, and saving for that down payment isn’t going to get easier anytime soon: Home prices are rising at twice the rate of wage growth.

Even as the economy continues to grow and the housing market rebounds from the Great Recession, Americans face widening inequality, and, for many, an inability to comfortably pay for housing as wage growth stagnates and housing costs continue to climb.

With supply shortages across the country, the simple answer to the rent being “too damn high” is, of course, to build more housing. But the reality is significantly more complicated than simply jump-starting construction. A variety of market forces, policy decisions, and demographic changes have converged to make building affordable housing a difficult, and politically fraught, proposition.

The most significant factors, however, are rising land prices and regulatory constraints on development.  These constraints, largely imposed at the local level, raise costs and limit the number of homes that can be built in places where demand is highest. Meanwhile, a large percentage of new housing being built is intended primarily for the higher end of the market. The limited supply of smaller, more affordable homes in the face of rising demand suggests that the rising land costs and the difficult development environment make it unprofitable to build for the middle market.

The number of homeowners rose sharply, even as the ratio of median home price to median household income rose from a low of 3.3 in 2011 to 4.1 in 2018, a sign of deteriorating affordability. But conditions for would-be buyers vary widely across the country, with home values more than five times greater than incomes in roughly one in seven metro areas (primarily on the West Coast) compared with less than three times in about one in three metros (primarily in the Midwest and South).

On the renter side, the number of renter households fell for the second consecutive year in 2018, a stark contrast to the increases of the 12 preceding years. Nevertheless, rents are rising at twice the rate of overall inflation.

The growing presence of higher-income renters has helped keep rental markets stable. This has maintained demand for new apartments, even as overall rental demand has waned. At the lower end of the market, though, the number of units renting for under $800 fell by one million in 2017, bringing the total loss from 2011–2017 to four million.

Even as the market continues to lose lower-cost rental units, the share of US households paying more than 30 per cent of their income for housing declined for the seventh straight year in 2017.  Much of the progress was among homeowners, though, whose cost-burden rate declined to its lowest level this century. Cost-burden rates for modest-income renter households, however, continue to rise and with burdens affecting households higher up the income scale, the issue of rental affordability is increasingly getting attention at the state and local level.

Due to Covid 19 and home prices on the rise, we project the affordable housing crises will increase. Landlords are selling aged apartment buildings, theirs an increased demand for low income housing providers and limited management companies willing to take on the work.

3 The Project

Keeping in view the above given situation our organization proposes a project which offers building of new housing units which are affordable and available for rent to eligible persons. Since many more people are qualifying for affordable housing but there is a shortage of landlords and/or property owners willing to go through the highly regulated process which currently has a negative stigmatism towards a system being too tenant friendly, lack of enforcement towards tenants who damage properties,  or reconfigure obsolete or surplus commercial space (or extremely substandard, vacant housing) into affordable housing units. The project has the following objectives.:

3.1 Objectives

  1. Construct affordable and durable good quality housing units for eligible tenants;
  2. Maintain the quality standards of construction and
  3. Construct the houses according to the needs of common people;
  4. Create livelihoods and provide training to young entrepreneurs;

These objectives will be obtained by undertaking the following activities:

3.2 Activities

The following activities will be undertaken to achieve the above said objectives:

3.2.1 Collaboration with local government actors

The Lease Collection offers quality residential housing management services to homeowners/landlords, job opportunities and training. Nevertheless, we are seeking to purchase distressed or renovated multi-unit assets for sale and partner with government low-income housing programs. We plan to work closely with the local government housing teams and will seek guidance from them on all the construction matters. This will help Government Organizations who are seeking landlords to offer housing opportunities for the rising demand of citizen who are becoming eligible for housing choice vouchers.

The Lease Collection has all the required licensing for the construction and renovation of dilapidated buildings.

3.2.2 Education and Training

During the project the organization will provide training and livelihood opportunities to the people who have lost their livelihoods due to the recent pandemic of COVID 19. Tony Williams (Owner/CEO) is a certified entrepreneurship teacher with NFTE (Network for Teaching Entrepreneurship). He has developed and competed in multiple small business plan competitions winning first place. As an entrepreneur, certified teacher, mentor, father, husband  and business owner, Tony Williams has created a small business online training course and plan to host education seminars that will assist inspiring small business owners with business start-up education, resources and a chance to compete in business plan presentations located at Tower Club in Tysons for Business Start Up Capital.

By The Lease Collection (company) and Tony Williams purchasing, managing and maintaining multi-unit real estate assets, offering low income housing, and entrepreneurship and/or small business resources, education and training opportunities we believe we will contribute to the complete wellbeing of disadvantaged at risk middle/low income communities. This strategy will allow us to succeed in business and finance creative opportunities for non-traditional education, create work opportunities and philanthropy.

3.2.3 Use of management practices and technology

There are limited management companies who have the technology, passion, experience, work ethic and creativity willing to take on large affordable housing projects. The Lease Collection has worked with government and communities on many housing projects. So we are confident that our modern technology and management practices will be able to obtain the good results and benefit the communities and government.

The Lease Collection is licensed in DC, MD and VA to act as real estate managers/agents. We also have a team of dedicated professionals willing to take on complex projects.

3.2.4  Low cost housing technology and cost management

Our organization keeps itself updated on the low cost technologies used for construction of houses. Since we are already into the education and training we are familiar with the pros and cons of low cost housing. Our procurement processes are highly efficient and save a lot of time and resources as the procurement inefficiency can create havoc in house building.

We understand that cost Management as a long serving discipline throughout the life cycle of developments is an inescapable requirement for effective and efficient procurement process. Cost management is influenced by several factors, which includes organisational arrangements or procurement systems, land, financing, the environment etc. amongst other things .Cost management as a long serving discipline throughout the life cycle of developments provides the basis for the establishment of the optimum costs of housing development. Effective and efficient cost management is therefore a critical success factor in the procurement of low cost housing.

4 Sustainability

We understand that the problem of sustainable development determine the new perspectives of corporate reporting, increasingly emphasising the role of the business environment in designing and implementing the sustainability objectives. So our organizations takes special care to align the values with those of the community in which we operate , and because transparency has become the new paradigm of economic activities , we try to legitimise our  role in society through concrete actions while meeting the information needs of stakeholders.

In this specific project we will calculate the outcome to make our project sustainable. The rentals will sustain the maintenance of the housing units we construct.

5 Monitoring

Our organization has all the monitoring arrangements for the projects it undertakes. These arrangements include regular visits by trained engineers to the site, inspection of material used and also overseeing the procurement processes. If something is going wrong it is corrected immediately.

6 Budget

We estimate a budget of 5 million dollars will be needed initially.

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