Funding our Green House® community
Part of our funding will rely on the private-public partnership that has enabled much of our growth for decades. Government funding is integral to the Vernon Homes mission of providing affordable housing and healthcare.
This Green House community in New Jersey provides inspiration for the multi-home community we plan to finance via a government loan program plus a fundraising campaign.
Green House financing highlights:
- We submitted a pre-application in April 2020 for a USDA/Rural Development Community Facility Loan Program loan and are awaiting approval
- Based on work completed by the development team (architect, civil and mechanical engineers, and general contractor), we anticipate the total cost of development, site work and construction to be $20,000,000
- In addition to government loans, we plan to raise $5,000,000 through grant and capital campaign fundraising
A brief history of VH and government funding programs:
- Vernon Green Nursing Home. In 1946, Congress passed the Hill Burton Act. It gave hospitals, nursing homes and other health facilities grants and loans for construction and modernization. In return, they agreed to provide a reasonable volume of services to people unable to pay and to make their services available to all persons residing in the facility’s area. Funding provided by this Act enabled the construction of Vernon Green.
- Vernon Hall. We received a loan via HUD’s Section 236 program to help build Vernon Hall. HUD created Section 236 in 1968 to enlist the private market in developing affordable rental homes. Through it, private lenders made 40-year market-rate loans that were either insured by HUD or financed by a state Housing Finance Agency. HUD provided the owner with an interest reduction payment that subsidized the owner’s mortgage down to a 1% interest rate. In return, the owner agreed only to rent to households with incomes at or below 80% of the area median income.
- Vernon Birches. We took out a Rural Rental Housing Loan via the USDA Section 515 Rural Development program to build Vernon Birches and provide affordable rental housing for very low-, low-, and moderate-income families, elderly persons, and persons with disabilities.