""It's not necessarily buying down the rent. It's saying to an owner, without disrupting the market, 'If you are interested in selling your property because the deferred maintenance and capital improvements are so significant, we have a grant source that we could provide to you to do the capital improvements in exchange for a covenant on the property to guarantee affordability... over a period of time.' That's basically how it works," Johnson said."
""The biggest issue in NOAH is actually the ability to take care of the capital improvements," Johnson said. "That's why the rents are the way they are.""
Austin is preparing a public-private fund drawing on philanthropic, financial and corporate contributions to preserve older, modest apartment units known as NOAH. The fund would provide capital for repairs and upgrades so owners do not need to raise rents. The program would target properties with "good bones" that remain functional but require capital improvements and deferred maintenance. Owners could receive grants to complete upgrades in exchange for a covenant guaranteeing affordability for a set period. City Council will vote on a resolution to formalize the effort. Similar funds exist in other major U.S. cities.
Read at Austin Monitor
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