A new housing organization is trying to pool thousands of affordable apartments owned by nonprofits into a single trust, in a bid to make them more competitive with for-profit landlords.
The organization, called Joint Ownership Entity or JOE NYC, plans to launch in the coming months. Nonprofits can contribute their properties to the trust and will get paid out returns from the apartments.
The idea is that by pooling apartment management, nonprofits can save costs, increase their income, and ultimately buy more units, Crain’s reported.
“JOE NYC’s benefits come from scale,” the organization’s executive director Peter Madden told Crain’s. “What groups are really getting is our ability to manage the assets of this citywide portfolio.”
JOE plans to take over 3,000 units across 50 buildings. Next Week, nonprofit St. Nick’s Alliance plans to buy a 248-unit portfolio in partnership with JOE.
The Department of Housing Preservation and Development is on board with the idea.
“I have been looking for something like this to happen for a very long time,” deputy commissioner Anne-Marie Hendrickson told the publication. [Crain’s] — Konrad Putzier