This fund serves as a revolving pre-development fund.
When money is expended to acquire and rehab a home, or to construct a new home, that money will be returned to the fund when that home is sold.
This fund will not be used for the general operating expenses of the organization.
Graceful Solutions has worked with local elected officials for over two years to raise awareness of the conditions in low income neighborhoods and to generate the political will to address the problems. There is now momentum and public commitment to revitalize this area of town.
One of the key components of the revitalization is the improvement of the housing available in these neighborhoods. Graceful Solutions has a vehicle for people interested in housing improvement to get involved.
Graceful Solutions has created the Frenchtown/South Side Pre-Development Fund and seeking $500,000 to provide the working capital necessary to make a significant difference in the housing in these neighborhoods.
We will ask the Frenchtown/South Side Community Redevelopment Area Board to match the money we raise through this fund to support housing development in the CRA District.
There are three ways to support this effort:
- Graceful Solutions is a Florida nonprofit corporation with IRS 503 (c) (3) status so you can make a tax deductible contribution in any amount to the fund. Contribute Now
- You can loan money to the fund for five year loan at 0% interest. In other words, you will let us use your money for five years to improve the lives of people in this neighborhood. At the end of the five years you and: One, get your money back, Two, renew your loan for another five years, or Three donate the principal to Graceful Solutions and take the tax deduction.
Request more information about loans
- You can commit to provide professional services that will be needed in our real estate development efforts. For this option you would provide a letter of commitment to provide a given level of service over a defined period of time (i.e. “I will provide $15,000 worth of architectural services over the next three years as needed”). We will limit professional service commitments at $100,000 to not unduly reduce the cash available in the fund.
Request more information about providing professional services
Since it is anticipated that a good portion of the money in this fund will be from loans, it will be necessary to keep the fund replenished from the sale of properties so there is money available to pay back the loans when they mature.
For Profit Opportunities
Some projects will require equity investment as well as mortgage financing. These projects will be structured as for-profit LLCs. Graceful Solutions will serve as the general partner for those entities.
As noted above there are several projects where investors can be involved in this redevelopment effort. Investors will be invited to participate in the various LLCs that are created. People who have invested in the Graceful Solutions Pre-Development Fund will have the first opportunity to be part of the different projects.
Fund investors will be invited to invest in the various projects in proportion to their contribution in the fund. As an example, a project where two fund investors have expressed interest in investing in a specific LLC and investor #1 invested $50,000 in the fund, and investor #2 invested $100,000 in the fund then investor #1 would be offered 1/3 of the project and investor #2 would be offered 2/3 of the project. If either chose to invest less than this percentage then the other would be offered the remainder.
Our goal is to attract investors to the fund that have the desire and resources to participate in development projects at such a level that additional outside investors will not be necessary to support the projects. If the fund members do not fully subscribe to a specific LLC’s capital requirement, that project will be open to investors who are not members of the fund to raise the remainder of the needed capital for that project.