Why Non Profit?


Nonprofit developers create affordable housing.  

     Nonprofit housing is housing developed and managed on a not-for-profit basis for the life of the project. Nonprofit housing can be either for rent or sale and is provided to the community as a service. Most investor developers use housing projects to create an after-tax profit. Both taxes and return on investment (profit) add costs to the development of a housing project. Because a nonprofit does not have these costs, it can sell or rent homes for less money.

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     In response to changing conditions in the last 20 years, common interest groups such as housing co-operatives, private nonprofits and seniors have sponsored many nonprofit housing projects that meet their specialized housing needs. Bayridge works with these types of groups on a joint venture basis where the group defines the need and Bayridge provides the expertise to complete the project.

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     Nonprofit sponsors develop nonprofit housing projects and are totally responsible of all aspects of the project, from the initial project concept to completion and occupancy. Nonprofit sponsors (joint venture partners) of nonprofit housing have historically been churches, service groups, government agencies, charities or special needs groups.

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     Cost savings available through Bayridge fall into three areas: (1) the community planning and housing development program realizes inherent savings due to the structure of the program, (2) no profits have to be generated to provide a return on investment to investors; and (3) nonprofit organizations pay little or no taxes. These saving are passed on to the homeowners and renters.

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     Nonprofit housing corporations are set up to provide housing on a nonprofit basis for the life of the project. A for-profit commercial rental housing project generates a profit and ongoing income for an owner or group of investors. Working on a joint venture basis, the nonprofit housing corporation defines the need and Bayridge provides the expertise to complete the project.

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     The financial stability of a nonprofit housing project improves with time. Given successful development and ongoing management, the operating costs for nonprofit housing projects tend to increase at a rate lower than for profit housing projects. This enhances the long-term viability of nonprofit housing projects.

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