AFFORDABLE HOUSING DEVELOPMENT BUSINESS PLAN

I. Executive Summary

Company Description

CommonGround Housing—named to reflect shared community land and stable footing—launches in 2026 as a U.S.-based real estate development and management firm focused on affordable housing. We operate across the affordable housing sector with a multi-strategy model: new construction, targeted acquisitions and renovations, plus in-house property management. Our product mix ranges from studios to townhomes, designed for low-to-moderate-income residents and essential workers. One-line summary: we deliver safe, well-managed, affordable homes that blend developer-scale efficiency with operator-level resident service.

We differentiate by combining pipeline control (development and acquisition) with operational excellence (professional property management) and strong municipal and financial partnerships. Short-term goal: complete and lease the first 120 units by Q4 2027. Long-term goal: scale to 1,200 stabilized units across multiple states by 2032 while preserving >80% occupancy and 40%+ gross margin on developments. One-line summary: a vertically integrated, partnership-driven platform built to produce predictable social impact and stable financial returns.

Problem

The United States faces a critical shortage of quality affordable housing that leaves millions of low-to-moderate income households and seniors financially unstable, displaces essential workers, and reduces access to safe, accessible units.

Current market offerings often overlook the specific needs of LMI segments—modern, energy-efficient, and accessible units—creating a persistent gap that existing developers and managers are not meeting; there is clear demand for developers who can deliver affordable, durable housing while remaining financially viable.

Solution

The United States faces a shortage of affordable, high-quality housing that hurts working families and seniors and prevents essential workers from living near their jobs. Our business addresses this gap by developing new apartment buildings and acquiring existing properties to create safe, modern, affordable units, and by combining development and property management to keep quality high and operating risks low. One clear outcome: more stable housing for workforce households.

We run a multi-strategy model that holds purpose-built rentals for steady cash flow and executes selective merchant-build sales to recycle capital and boost returns. Portfolio mixes include compact, high-turnover studios; low-density family duplexes; and medium-density mid-market flats—each matched to local demand and regulatory contexts. The result: predictable supply of workforce housing and balanced liquidity for growth.

Mission Statement

We build and manage high-quality, affordable homes that create lasting value for residents, partners, and communities. Using a data-driven, flexible approach, we deliver measurable social impact and reliable financial performance while prioritizing stable housing for essential workers and families.

Key Success Factors

Success depends on zoning and subsidy partnerships, flexible operations, strong occupancy, timely construction, and impact capital.

• Municipal partnerships: secure zoning approvals and subsidy agreements with local governments.
• Flexible asset strategy: switch between holding and selling properties to match economic cycles.
• High occupancy: maintain steady cash flow through professional property management and tenant engagement.
• Efficient construction delivery: keep projects on schedule and budget, e.g., the $75,000 Willow Garden renovation.
• Impact-focused capital: attract and retain investors who prioritize social outcomes and long-term housing scale.

Financial Summary

Concise financial snapshot: project reaches breakeven in Aug 2028, targets a 60-month payback and plans final asset sale on Dec 31, 2030.

Financial requirements: maintain a minimum cash cushion of $1,307,000 (minimum cash month: Nov-30); plan exit sale on Dec 31, 2030 to realize returns; current model shows negative EBITDA through 2028 and an IRR of -2%.

Overall outlook: cash-covered through construction with an exit-driven return strategy.

Funding Requirements

The project requires equity, mortgage debt, and public subsidies totaling the capital needed to acquire property, complete construction, equip operations, and carry losses to breakeven.

Breakeven is projected August 2028 (32 months); Year 1 EBITDA is -464,000; minimum cash position $1,307,000 by November 2030; sample rents $1,750 (Elm Townhome) and $1,650 (Cedar House); target payback 60 months with an exit planned December 31, 2030.