Defining a New Industry Sector

Housing partnerships combine the entrepreneurial business approaches of the for-profit sector with the accountability and public purpose of traditional nonprofits. These social enterprises are smart and nimble in the marketplace and leverage public and private investments to achieve large-scale impact.

Though diverse in nature, housing partnerships share six defining characteristics:

1. Mission-Driven Nonprofits: Independent nonprofit corporations whose primary mission is to provide affordable housing opportunities and related support services to lower income households.
2. Sound Businesses: Nonprofit enterprises with strong executive leadership, professional management staff and systems, and a demonstrated track record of financial integrity and performance.
3. Public-Private Partnerships: Established organizations with leadership from the business sector that facilitate partnerships with government and private institutions.
4. Large-Scale Impact: Catalysts for affordable housing production, programs or finance that sponsor large scale, high impact initiatives which are at the highest performance level in their given geographical market.
5. Regional Scope: Operate at least on a citywide or regional basis with accountability to the civic leadership of the geographic area(s) they serve.
6. Culture of Collaboration: Entrepreneurial businesses with a history of collaborating with peers to improve current practices and pursue new opportunities.

Housing partnerships undertake a range of activities focused on housing development, management, financing and services. This includes rental and for sale housing, property management, non-residential development, and provision of services to residents of their housing and the broader community. Many partnerships are also mature lenders and investors in commercial real estate, home purchases, and nonprofit facilities, such as charter schools and day care.

In 2005, the Network commissioned an independent research initiative to examine the production impact, business models and policy constraints of these high performing nonprofits. Led by the Urban Institute and Harvard University's Joint Center for Housing Studies, and funded by the MacArthur and Fannie Mae foundations, this was the first in-depth assessment of the partnership-based, nonprofit housing organizations in the United States.