Family Asset-Building Apartments: A Canadian Wealth Building Model
Project Summary:
•Skyrocketing prices mean that increasing numbers of Canadians cannot get on the home-ownership ladder
•Under the traditional model, long-term renters can never build the anywhere close to the level of wealth that homeowners can.
•The IPN model builds wealth in communities by allowing renters to receive an equity portion of a multi-family development.
•The model prioritizes apartment occupancy by low/middle income families that are invested in the community.
•The IPN software system tracks ownership and long-term wealth creation over time and identifies additional investment opportunities for community residents.
The Problem:
•Canadians, particularly low/mid-income families, cannot afford to buy homes. According to RBC, the share of household income needed to cover home ownership costs has reached 106.4% in Vancouver, 84.8% in Toronto, and 63.5% nationally.
•These high costs are additionally restrictive for families especially paired with the additional needs of food, school supplies, child-care, transportation, and other daily needs.
•Under the existing model, it is very challenging for low/mid-income families to generate broad-based wealth, especially in their communities.
•Many families are asset-light and need vehicles for inclusive asset building that enables them over time to generate wealth that can applied to direct home ownership, starting a business and other purposes.
Project Design Model:
•Source the equity portion of the capital raise for the ownership of the apartment project locally across residents from all incomes, then bundle the local capital with non-local capital and government capital.
•Utilize the IPN low/mid-income family asset building program for an appropriate portion of the capital raise thereby building assets for families in need. This portion can also be paired to low/mid-income family's residency in the apartment project. The longer renters stay in their apartments, the more wealth they can generate.
•Governments, foundations and other non-profits not seeking a return on their capital can bundle their capital with local, non-local, and the IPN low/mid-income family asset building program. Extending their capacity to deliver more projects that are inclusive and create ownership across all income and wealth levels.
•Creating direct ownership in the project from community residents and with the families that rent those apartments will help with project approvals and operating costs.
This is not rent to own. Under the IPN model, renters have an equity stake in the overall project, not merely their unit. This creates the potential for greater wealth creation over time.
Other Investment Opportunities:
Example - Design the apartment complex as a Solar Power Plant Community.
Tie-in the systems and sensors used to for energy, water, sewer and other appropriate system into the IPN investor, project developer(s), building management, and government dashboards. Generating a real-time feed of knowledge to the resident-owners thereby potentially lowering operating costs and accelerating returns.
Why Work with IPN?
#1 - Using the IPN method of public/public-private project delivery amends, enhances, and aligns your existing system. The IPN method is designed to be highly adaptative to local community’s contextualized needs, builds additive capacities, while circulating capital and knowledge creating stronger balance sheets and development knowledge
#2 – The IPN system of public/public-private project delivery amends, enhances, and directly aligns your existing system to a community’s contextualized needs. The IPN system bundles capital, circulates capital, and the knowledge generated from development projects in ways that improve balances sheets and development processes creating a highly adaptive project delivery system designed to tackle the complex changes we are currently facing.
#3 – Adding IPN systems expands your capabilities to deliver a long list of projects and shift people from contesting project to participating in projects as an invested public – contested to invested. IPN systems adoption allows governments and their partners to adapt their existing public works project load to meet today’s long list of delivery upgrades, new technology extensions, and shifting climate weather patterns.
#4 – Using the IPN method of local project delivery amends, enhances, and aligns your existing system. The IPN method is designed to be highly adaptative to local community needs, builds additive capacities, while circulating capital and knowledge creating stronger balance sheets and development knowledge through which people contesting change learn how to become a creative constituency acting as an “invested public”.