Cluster 2
High
Urban core of economically dynamic, larger metro areas
Gentrification
Moderate income
Bachelor's degree or higher
25-34 years old
Low unemployment
5+ unit & 50+ unit buildings
Built before 1950
High density & vacancy
New development of high density buildings
Prosperous urban core with older rental housing, but also recent new development. Loss of lower-income renters and increasing higher-income renters indicate displacement pressures and increasing exclusivity. Most frequently found in the urban core of economically dynamic and larger metro areas:
- Demand: This market type has the highest levels of renter households. Renters in this area are younger and highly educated. It has high levels of renters 25-34 and the largest increase in renters 25-34 since 2012. It also has low levels of older renters and largest declines in older renters since 2012. Renters also tend to have higher incomes with the highest levels of very high-income renters (more than 200% AMI). It also has indicators of displacement with the largest declines in lower-income renters (those earning less than 80% AMI) and largest increase in higher-income renters (those earning over 120% AMI).
- Supply: This market type has an older rental housing stock with a high share of rental housing built before WW2, but it has also seen new investment with a large increase in rental properties built since 2000. It has higher levels of rental units found in mid-sized 5-49 unit rental buildings. It also has the highest level of rental units in 50+ unit buildings and the largest increase in rental units on 50+ unit buildings, indicative of the type of new investment happening in this area.
- Affordability: This market type has low levels of affordable rental supply and has seen large declines in the lower-cost rental stock. However, because renters in this market type have higher incomes, there is an overall low share of cost-burdened renters. Given the higher cost of market-rate housing, affordability is more likely to be found in subsidized units, and compared to other clusters, this area has higher levels of rental housing found in project-based section 8 and public housing. However, these types of units make up a relatively small share of the housing stock.
Programs active in Cluster 2
District Opportunity to Purchase Act (DOPA) Washington D.C.
Cluster 1 Cluster 2 Cluster 3Entities involved: City Government, Non-Profit Housing Developer
The District Opportunity to Purchase Act (DOPA) is a preservation tool implemented by the DC Department of Housing and Community Development that promotes affordable rental housing by maintaining the affordable status of existing affordable rental units as well as increasing the total number of affordable rental units within the District. … Read more >
Small NOAH Program Saint Paul
Cluster 1 Cluster 2 Cluster 4 Cluster 5 Cluster 6Entities involved: Community Development Financial Institution (CDFI)
The Greater Minnesota Housing Fund (GMHF) is a Community Development Financial Institution (CDFI) that created the Small NOAH program to provide low-cost capital in the form of first mortgage, mezzanine and gap funding to small property owners to preserve unsubsidized affordable housing stock in communities throughout Minnesota. The Small NOAH … Read more >
Rental Improvement Fund (RIF) Philadelphia
Cluster 1 Cluster 2 Cluster 3 Cluster 5 Cluster 6Entities involved: Non-Profit Organization
Philadelphia Housing Development Corporation (PHDC) offers loans for small property owners owning no more than 15 units across no more than 5 properties are eligible for full forgiveness or a preferable 0% interest rate if landlords meet program affordability requirements during the loan term. Loan amount must be between $10,000 … Read more >
Acquisition Opportunity Program Boston
Cluster 1 Cluster 2 Cluster 3Entities involved: City Government
The City of Boston Mayor’s Office of Housing administers the Acquisition Opportunity Program. This program offers developers the opportunity to pre-qualify for a set amount of funding, up to $75,000 per unit. These potential buyers can then become more competitive in the real estate market. To pre-qualify for the program, … Read more >
NOAH Impact Fund Minneapolis, Saint Paul
Cluster 1 Cluster 2 Cluster 4 Cluster 5 Cluster 6Entities involved: Community Development Financial Institution (CDFI)
Greater Minnesota Housing Fund, a statewide Community Development Financial Institution (CDFI), officially launched the NOAH Impact Fund in June 2017 with $25 million from seven impact investors to acquire 1,000 units of rental housing and maintain affordable rents for 15 years. The NOAH Impact Fund partners with socially motivated investors … Read more >
Small Landlord Fund Pittsburgh
Cluster 2 Cluster 6Entities involved: Non-Profit Organization
The Urban Redevelopment Authority (URA) of Pittsburgh administers the Small Landlord Fund program provides 0% interest loans, up to $20,000 per unit to landlords with ten or fewer units for repairs and upgrades, with the goal to preserve existing affordable rental housing and/or to convert market rate and vacant housing … Read more >
Opportunity Investment Fund (OIF) Chicago
Cluster 2 Cluster 3Entities involved: Community Development Financial Institution (CDFI)
Community Investment Corporation (CIC) offers the Opportunity Investment Fund (OIF), also referred to as the Mezzanine Debt Fund. The Fund provides low-cost mezzanine debt to developers who purchase existing, functioning rental buildings in high cost markets. In exchange, at least 20% of those units must be affordable to households at … Read more >
Green Cost Share Minneapolis
Cluster 1 Cluster 2 Cluster 4Entities involved: City Government
The City of Minneapolis created the Green Cost Share connect property owners with a variety of energy savings programs including energy efficiency upgrades and solar installation. Multifamily rental property owners can apply for: The commercial and multifamily property owners with five units or more can apply for a City match … Read more >
East Boston Neighborhood Trust (EBNT) Boston
Cluster 2Entities involved: Housing Trust, Non-Profit Organization
In October 2022, the newly formed East Boston Neighborhood Trust (EBNT) acquired 36 multi-family buildings in East Boston to preserve 114 units for affordable housing. The EBNT is the first Mixed Income Neighborhood Trust (MINT) in Massachusetts. Typically, MINT models contain a mix of housing options for different income levels. … Read more >
Amazon’s Housing Equity Fund Nashville, Seattle, Washington D.C.
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5Entities involved: City Government, For-Profit Entity, Local Housing Authority, Non-Profit Organization, State Housing Finance Agency (HFA)
In January 2021, Amazon launched the $2 billion Housing Equity Fund with the goal of creating and preserving 20,000 affordable homes across three of its hometown communities—Washington State's Puget Sound region; the Arlington, Virginia/National Capital region; and Nashville, Tennessee—within five years. The Fund is designed to help moderate- to low-income … Read more >
Low-Income Rental Classification (LIRC) Edina, Golden Valley, Minneapolis, Saint Paul, St. Louis Park
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6Entities involved: State Housing Finance Agency (HFA)
Qualifying Properties are at least 20% of total units in the rental property must be affordable (Section 8, LIHTC, USDA, Rent restrictions placed by state, local, or federal government at or below 60% AMI). For qualifying properties, the eligible units use the 4d(1) tax class rate of .25%. The lower … Read more >
Texas Housing Conservancy Fund Austin
Cluster 2 Cluster 4 Cluster 5Entities involved: Private Equity Fund
Administered by the Texas Housing Conservancy (TxHC), the Texas Housing Conservancy Fund is an open-ended social impact private equity fund for high-net-worth individuals, family offices, private foundations, institutional investors, Bank CRA programs, larger foundations and others. Unlike other impact investment funds, which invest in enterprises with social or environmental missions, … Read more >
Small and Medium Multifamily (SMMF) Loan Program Minneapolis
Cluster 1 Cluster 2 Cluster 4 Cluster 6Entities involved: City Government, Community Development Financial Institution (CDFI), Land Bank, Non-Profit Organization
Small and Medium Multifamily (SMMF) Loan Program is a partnership between the Land Bank Twin Cities, Inc. (“Land Bank”), Local Initiatives Support Corporation (“LISC”), and the City of Minneapolis. The goal of the program is to get community control over small-to medium multifamily (SMMF) buildings defined as 2-49 units in … Read more >
Washington Housing Initiative Impact Pool (WHIIP) Washington D.C.
Cluster 1 Cluster 2 Cluster 3Entities involved: Financial Institution
The Washington Housing Initiative Impact Pool (WHIIP) is an approximately $115 million investment vehicle that targets after-tax returns equivalent to many traditional investment funds. The Impact Pool is managed by JBG SMITH Impact Manager, a subsidiary of JBG SMITH Properties. The Impact Pool provides mezzanine/second trust financing, coordinates placement of … Read more >
Small Buildings Program (SBP) Washington D.C.
Cluster 1 Cluster 2 Cluster 3Entities involved: City Government
The District of Columbia’s (D.C.) Department of Housing and Community Development’s (DHCD) Small Building Program (Program) provides financial assistance for limited systems replacement and other key repairs to eligible property owners of multi-family rental housing located in the District of Columbia (District). Repairs are expected to improve sub-standard housing conditions, … Read more >
MSAs including Cluster 2
Loading table...