Affordable Housing, Homelessness, Reports and Publications, Supportive Housing

Report: Supportive Housing A Good Investment


Despite somewhat lower revenues and higher operating costs compared with affordable housing, a new study from the Corporation for Supportive Housing (CSH) and Enterprise Community Partners concludes that permanent supportive housing is a safe investment.

CSH and Enterprise analyzed the annual revenue, expenses and cash flow of 10 supportive housing units and 10 affordable housing rental units and conducted interviews with providers at the supportive housing units to examine what factors impacted the results of their analysis.

The study found that:

  1. Occupancy was strong for both sets of projects, though revenues are 9 percent lower for permanent supportive housing than for affordable housing, due primarily to higher rental subsidies in affordable properties.
  2. Operating expenses are 11 percent higher for permanent supportive housing than for affordable housing, with security accounting for a large part of that difference.
  3. Cash flow after debt service and replacement reserve deposit is higher for permanent supportive housing. The Net Operating Income (NOI) is 46 percent lower for permanent supportive housing than for affordable housing. This is offset by the structure of having lower debt service.
  4. Permanent supportive housing projects successfully maintain operating subsidies and offer services over time. The report finds that funding agencies are invested in the long-term success of their projects. When permanent sup¬portive housing projects experience financing problems, these agencies have an interest in working to find solutions. Permanent supportive housing owners and service providers also often have the infrastructure in place to secure additional funding from philanthropy. Private fundraising has proven to be an important tool to meet funding shortfalls during tough economic times.

To Learn More
Read the full study


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