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MIDDLE INCOME HOUSEHOLDS INCREASINGLY BURDENED
33%
Cost Burdened
Households at 60% of area median income (“AMI”) to 120% of AMI pay more than 30% of income on housing costs
23%
Growth in portion of households burdened
Since 2019. Recent surges in market rate development have not benefited these households
41%
Of Total Burdend Households
Middle Income households now make up a large portion of total cost burdened households
Middle Income Households
WHAT DO THEY LOOK LIKE?
60% to 80% AMI
One Income - customer service managers, nurses, techncians Two income - retail workers and supervisors, administration
80% to 100% AMI
One Income - Skilled trades, IT Support Two Income - teachers, public service, non-profit professionals, first responders
100% to 120% AMI
Income - small business owners, exerperienced trades people.
Income - Nurses, police officers, managers
STABLE RISK ADJUSTED RETURNS VS OTHER ASSET CLASSES
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9.3%
Average Total Return
Based on study from 2011 to 2022.
2.6%
Standard Deviation
Lowest risk/volatility among all asset classes evaluated
0.3%
Correlation with S&P
Low to moderate correclation with stocks and bonds
Policy Momentum
PUBLIC SUBSIDIES
19 States
Have enacted various subsidy programs including tax abatements, tax credits, and dedicated funds.
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Colorado
Colorado leads the way with four large statewide middle income funds and programs as well as numerous local subsides
12+ Local Governments
Local governments are increasingly creating targeted programs and dedicated funding sources.
SUBSIDIES ADDED TO CAPITAL STACK
Free or low cost land
Municipalities may lease available land for affordable housing on long-term leases
Property Tax Abatements
Some municipalities wave property taxes in exchange for affordability covenants. Can be large subsidy in some markets
Low Rate Subordinate Debt
​Below market rate foundation and public subordinate debt is increasingly available
Favorable Terms from Agency Debt
Fannie Mae and Freddie Mac have dedicated workforce products with lower DSCR, higher LTV, longer amortization, and lower spreads
TARGET MARKETS - GROWING METRO AREAS
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​Population growth particularly limits housing options and increases costs for middle income households.
Growth increases political will and support for subsides from both employers and residents.
Market rate boom and bust cycles have moderated shorter term impact on middle income households.
Opportunites for counter-cyclical investments due to steady long term demand for middle income housing.
TARGET MARKETS - RURAL RESORT COMMUNITIES
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Geographic constraints for new development.
Workforce required to have long commutes or live in undersitable housing situations.
Mission and market supports higher average AMIs, due to wage levels and lack of housing options.
Strong politcial will and economic need to subsidize labor force.
​Accessible free land and dedicated housing funds through short term rental taxes/fees.
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MIDDLE INCOME FINANCIAL STRESS
60%
Finances Getting Worse
Survey responses regardng impact of rising costs of living
37%
No Emergency Fund
Survey respondants unable to manage an unexpected $400 expense
48%
No Investments
Responded that they have no invesments through retirement funds or other opportunities
SHARED PROSPERITY PROGRAM
​Monthly cash back from first 1% of cash flow to the fund and long-term upside through voluntary IRR caps
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Sharing of Portfolio Returns
Tenants benefit from total portfolio, diversified across markets and project timing
Passive Savings
Tenants get cash back monthly just for paying rent, which can accrue over time to support emergency funds and long term investing
Financial Coaching
AI powered and human financial coaching targeting “teachable moments” around cash back milestones and financial events
UNIQUE BENEFITS OF CASH BACK FOR RENT - WEALTH BUILDING
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Not Reportable Income
​Treated the same as cash back on any consumer purchase. Not reportable for either party for tax purposes
Credit Reporting
On time rent payments included to credit reports to support long term improvement
Lower Turnover
Cash back benefits effect move out decision to properties without such benefits
Longevity
Encourages longer term tenancy to increase benefits of the program and set tenants on path to wealth building
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TRACK RECORD OF SUCCESS
CHAI Equity Capital
$15 Million
Capital raised from foundations, quasi-government entity, and private investors.
7 Investments
Invested in both new construction and preservation in urban, rural, and resort markets
423 Units
Weighted towards “familiy size” units - 2, 3, and 4 bedrooms.
Prototype Cash Back Program
Currently 165 households in the program, improving tech and services to maximize engagement
The partners anticipate utiizing the fund management platform and team built for the CHAI Funds (Weave Fund Management, LLC) for the execution and management of the fund. Ed Briscoe is an owner and the executive chairman of that entity.
TEAM EXPERIENCE
Stephanie Wilson and Ed Briscoe
49 Years of experience in real estate lending, investment, and development.
$800 million in real estate transaction experience across the country.
4 million+ sf of real estate across industrial, commercial, medical office buildings, and housing.
EXISTING PIPELINE
PROJECT
PARK PLACE
APARTMENTS
3 and 4 BR units
80 units, ranging from 80% to 120% AMI
Neighborhood Amenities
Near light rail station, city recreation center, and public parks
MIHTC
Awardeed of inagural round of middle income tax credits, resuliting in approximately $6 millin in proceeds.
Subsidies
LIkely property tax abatements and below market rate debt from public sources
FUND PERFORMANCE
Our Existing Fund
Practical programs that directly lower costs and build household wealth
Our seed capital and pilot programs demonstrated operational performance across varied markets.
$15M
Capital raised
423
Units
7
Investments
~165
Households
How this helps you: Real pilot data reduces execution risk for new investors and partners.
Program mechanics
We allocate first 1% of cash flow to tenant cash back, layered with public subsidies and subordinate financing to improve returns and affordability.
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Cash back for tenants (non-reportable)
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Financial coaching & credit building
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Voluntary IRR sharing to align incentives​
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How this helps you: Designed to lower turnover and increase resident financial stability while protecting investor returns.
WHERE WE INVEST
Target Markets & Pipeline
Select markets that balance demand, subsidy, and political support
Growing Metro Areas
High demand, strong policy support
Why it matters: Access to scalable projects with subsidy offsets
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Rural Resort Communities
Workforce housing need near seasonal economies
Why it matters: Higher per-unit subsidy and long-term rentals
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Park Place Apartments
80 units — 3 & 4 BR, 80–120% AMI
Why it matters:
MIHTC award (~$6M) + transit adjacency
WHY NOW
Performance & Policy
Policy momentum and solid risk-adjusted returns make this an attractive space
Solid risk-adjusted returns
Competitive returns with lower volatility and low to moderate correlation with public equities
How this helps you: Portfolio diversification with mission alignment
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Policy momentum
19 states have middle-income subsidy programs; Colorado leads and many local governments are creating funding sources
How this helps you: Public support reduces project funding risk
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