THE “BACKYARD” SPONSOR PROGRAM
The backyard sponsor program is the big innovative idea. It re-connects the unhoused family back into their community with dignity. We currently have about 3,500 homeless people in Sonoma County, and an estimated 1/4 are simply needing financial assistance and the stability of a home to regain their financial and emotional footing.
Generally, opponents of homeless relocation sites have limited personal benefit of a facility in their own neighborhood, yet they bear most of the risks associated with homelessness in their neighborhood without any personal control.
With the IMBY modular program we can change that. We can give a homeowner a way to “help” with some personal economic benefit along with some personal control of those risks.
Under our program, the city or county provides a homeowner with an IMBY studio unit with a small bathroom and kitchenette and pays that homeowner to provide shelter to an unhoused family. The homeowner gets to personally evaluate, select and control the continued occupancy of that individual or family. In other words, a homeowner can pick someone who is NOT on drugs, is NOT mentally unstable, and is NOT a threat to their own family or community.
They are simply on the road to rehabilitation.
A homeowner commits to a two year program and receives $500 per month. They can do well by doing good. If a homeowner is willing to purchase the unit for $50,000 (from the county or directly from IMBY), the rent will be adjusted to $750 per month – and yield 18% on their investment. Even better, the city or county could administer the financing of that purchase (similar to PACE solar financing) and allow the homeowner to take ownership without a capital investment. Just an approximate $250 monthly payment. And later use the unit for their own purposes, hopefully, in the rental market to alleviate constraints on our housing supply.
THE ECONOMICS
IMBY sells the studio to home owner for $50,000 turnkey (permitted, installed, utility connected). Financing is provided at 5.0% for 30 years resulting in an approximate $250 monthly payment. City or County rents the studio from the home owner for $750 per month to stabilize an unhoused family. This is far, far more cost effective than existing homeless program alternatives. And likely more effective by engaging and aligning interests with the community.
The risk to the homeowner is governed by a comprehensive set of rules of good conduct, etc. (perhaps modeled on Habitat for Humanity’s policy). Additionally, an integrated job training program is available as part of the program.
Home owner selects the family and has complete discretion of allowing their continued occupancy. Naturally, the homeowner will select the cream of the crop (i.e. the top 40% of the unhoused population that just needs help), but this nevertheless helps.
Homeowner gets a nice cash flow. Homeowner controls the risk to his neighborhood. Unhoused family gets a home. Unhoused family is integrated back into a community. And we all advance humanity in Santa Rosa.
THE COUNTY
The County can first purchase the IMBY units to address the immediate demand for cost effective housing. IMBY will operate independently to expand the footprint of this program, and will incorporate a buy-back program with homeowners participating in the program. This will allow the re-sale of the IMBY modulars from the County to the homeowner and allow re-deployment of that capital for expanding the housing initiative in Sonoma County.
Initial capital investment provides immediate homes, which can be re-located on a permanent basis later. Market adoption of the “ADU Shelter Program” can self-fund a Sonoma County housing initiative in its entirety.