Neighbor-Owned Affordable Housing

Summary: Neighbor-Owned Affordable Housing (NOAH) is a financing program designed by the Partnership in a joint venture with the Madison Area Apartment Association to promote the purchase of small rental properties by new investor-owners.

Wisconsin Partnership's role: Financing program manager

Staff contact: Program now managed by Project Home, Madison. Email Jan Reek at janr@projecthomewi.org.

The NOAH program was designed by the Partnership in 1998 in a joint venture with the Madison Area Apartment Association. Initial funding of $205,000 came from the City of Madison CDBG program, supplemented by a $20,000 grant from the Fannie Mae Foundation.

When the program opened for business, new investor-owners could receive zero percent, deferred-payment loans of $15,000 or more to assist with the purchase of rental properties of up to eight residential units. NOAH funds could be applied to purchase of the property, as well as to other expenses such as title insurance, survey, inspections and closing costs. In return, the borrowers were required to rent any units assisted with NOAH funds to households with incomes at or below 80% of area median. Borrowers also agreed to live in the purchased properties for at least five years, join the Apartment Association, and participate in the association's property management training and mentoring programs. Repayment of NOAH funds was deferred as long as borrowers continued to abide by program requirements.

In 2000, management of NOAH was transferred to Project Home, a Madison-area nonprofit that provides home repair and energy conservation services, and also develops and manages rental housing.