Prospective Homeowners Association

Organizational Synopsis
Homes for the Rest of Us
Non-subsidized, entrepreneurially-developed, fair and balanced
between the classes, as they are built for affordability
Abbreviated !siness S!mmary
"his paper is designed to show in #!ic$ format what we stand for% what we believe
it will ta$e to reach% and what we are doing to accomplish o!r goals&
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Prospective Homeowners Association
Organizational Synopsis
O!tline of Organization
"hree Separate *orporations
One is for+profit% the other two are non+profit
One ,on+profit is called Prospective Homeowners Association -PHA.
PHA will operate as a non+profit )/'-c. -0. p!blic charity% designed for the 1oint and several
p!rposes of2
3evelopment of Affordable(Attainable Ho!sing% and
Association of landless individ!als who will p!rchase as a b!yers cl!b% and own land
cooperatively as a *ondomini!m Association 4 homes in 1oint+ownership with PHA+
Real 5state 6nvestment 4 7anagement *o&% with shares of e#!ity based !pon their
income% -possibly with shares in HR*A.
5conomic 3evelopment "hin$ "an$ for the 5conomic Stim!lation and 3evelopment of
the Santa arbara *o!nty 5conomy
6t will maintain Charitable Remainder Trust-s.% and a *omm!nity 8and "r!st
The Other Non-profit (Un-named)
)/'-c.-9. Private non+profit% for the p!rpose of lobbying and advocating for affordable
ho!sing&
For-profit (Un-named)
*alifornia *+*orp&% P!blic company with shares% for the p!rpose of receiving investments
and investing those monies in affordable ho!sing for the low+income and middle+income
residents of Santa arbara *o!nty&
:(')
Prospective Homeowners Association
Organizational Synopsis
S!mmary of ;oals of "wo of o!r Organizations
*reate at least '%/// starter homes
<or 7iddle and 8ower 6ncome Residents
Sales Prices will be ased on the b!yers= 6ncome
Prod!ction >ithin the years ://?+://@
PHA will *o+invest with !yers
<!t!re Aal!es will *ap to Retain Affordability% b!t will Share
<!t!re 5#!ity% based on <orm!la% 3epending on the 7ar$et
Hold o!r own 7ortgage Paper% to Receive 8ong+term 6ncome
ased on pre+fabricated materials
!ild the following $inds of b!ildings on p!rchased property
o ;ranny <lats on eBisting homeowners= land
o *ommercial -research% man!fact!ring% wor$shop% retail2
-affordable office space: for charities & start up small business.
o *o+op <arms
o "own Homes
o Apartments
o Single+family
o 7!lti+<amily -3!pleB("ri+pleB(<o!r+pleB.
Sell to 6ndivid!als -#!alified.
Re+develop inner+city lots
3evelop Planned *omm!nities O!tside the *ities
3evelop "racts of ,ew Homes% 7iBed+!se with !siness
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Prospective Homeowners Association
Organizational Synopsis
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Prospective Homeowners Association
Organizational Synopsis
7embership Platform
O!r association stands for the constr!ctive and prod!ctive !se of land&
*omm!nities and neighborhoods cannot thrive witho!t varietyC "raffic 1ams
and poll!tion are ca!sed from the lac$ of good planning and lac$ of 7iBed Use
neighborhoods&
"he e#!itable prod!ction and management of homes for all income levels&
>e demand the oard of S!pervisors attach a >indfall Profit "aB to all sales
of new or !sed homes that were 1ac$ed+!p in price d!e to the 6n+lie! fee&
Habitat enhancement and species maintenance% as well as saving water from
eBcess !se&
U*S needs to be allowed develop its own ho!sing for st!dents and teachers
on its camp!s gro!nds&
>e call on the *ities% *o!nty% State% and <ederal government to p!t land bac$
into the private sector for redevelopment into homes for the 7iddle *lass
which the government has not !sed for years and has no c!rrent plan to !se
within the neBt '/ years&
>e s!pport the availability of co!nty 4 city land maps% zoning and land
ownership information be made available at little cost via the 6nternet&
>e s!pport the development of a method by which people can lease new
homes with the option to b!y% and that their money is p!t to !se in the local
economy% thro!gh an economic development f!nd paid for by a taB on their
leases&
>e call on the *o!nty and *itiesD Planning 3epartments to <ast "rac$ any low
cost and !nder+mar$et rate ho!sing developments&
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Prospective Homeowners Association
Organizational Synopsis
6ncome *ategories 4 Pro1ects
"he non+profit company will operate as a typical p!blic charity% setting !p tr!sts%
applying for and receiving grants% cash donations% etc& !t it will also operate Social
5nterprises% which are income+generating b!siness entities% aligned with the mission&
Non-Profit Corp. For-Profit Corp.
*haritable Remainder "r!st-s. 8and 4 !ilding 3evelopment
*omm!nity 8and "r!st 7ortgage *ompany
;rants 4 *ash 3onations 6nvestment *ompany
Operate Social 5nterprises Power Prod!ction 4 7anagement
<!nd+raising 3esalination 4 Processing(P!mping(Pipe
5conomic 3evelopment "hin$+tan$ 5conomic 3evelopment an$
Co-operative Business Social nterprises!
Small <arming% "r!c$ing 4 Refrigeration2 Organic <r!it% Aegetable 4 <ish
8ocal ,at!ral Aegetation 8andscaping
Recycling 4 Re+man!fact!ring
;reen Power man!fact!ring2 >indmill parts 4 Solar panels
3esalination water plants 4 Parts 7an!fact!ring% P!mping 4 3elivery System
S!stainable !ilding 4 *omm!nity 3esign *ons!lting
Sales 4 7ar$eting company% for all Social 5nterprises
Pre+fabricated b!ilding man!fact!ring
*hild 4 Senior 3ay *are *enters
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Prospective Homeowners Association
Organizational Synopsis
3evelopment Plans 4 "ime 8ines
6nitial 3evelopment Phase
>e will prefer to develop !sing pre+fabricated materials% by placing factory+b!ilt% new town
homes onto land after either by tearing down or moving eBisting str!ct!res on land was already
improved& >e will do this for a co!ple of reasons2
'& A ban$ will not loan on !nimproved land&
:& "he land with older str!ct!res may be worth less than land witho!t str!ct!res% or land with
newer str!ct!res that may have room for additional b!ildings&
0& >e will follow this plan !nless the owner of the land% or perhaps a m!nicipality offers !s
land that we don=t need to p!rchase to move b!ildings onto it for sale
?& >e may negotiate the prod!ction of str!ct!res !pon the land% by contracting with the land
owner to share in the profit of the sale of the property&

Second 3evelopment Phase
After we get o!r b!siness gro!nded and we=re moving forward% we will b!y !nimproved land
and p!t new str!ct!res on itC beca!se by this point in time% we will have cash for earnest money%
or down payments to land owners who do not need to be paid in f!ll for land at the time they sell
it to !s&

"hird 3evelopment Phase
>e will b!y larger tracts of land% perhaps in Santa 7aria% or the *!yama Aalley where we co!ld
b!ild a comm!nity of homes& However o!r tract will be laid o!t different than the Roman ;rid
style& 6t will be designed !pon the 5!ropean village style&

<o!rth 3evelopment Phase
>e will b!y parcels on which eBist already standing apartment b!ildings which we can convert
into condomini!ms and offer eBisting tenants the opport!nity to lease with an option to b!y&

<ifth 3evelopment Phase
>e will b!y parcels which we can b!ild new apartment b!ildings on it% and lease with the option
to b!y% !ntil all !nits are sold& >e may even b!y land and b!ild new apartment b!ildings on it%
for the p!rpose of renting fair+val!e apartments o!t& >e may negotiate with homeowners to raise
their homes !p one level and b!ild a new gro!nd floor level for rent or sale -;iving the owner :/
years to pay off the improvement% while creating a condo sit!ation for the new first floor owner.%
commercial b!ilding or shopping center owners to add homeowner+occ!pied !nits on the roofs
of their commercial(ind!strial(retail centers&

6ncidentally
All new str!ct!res we place on improved land will be either m!lti+family or single+family%
depending !pon the size of the parcel& 6deally% we will place the maBim!m n!mber allowable on
the parcel% to maBimize the lot=s potential in sales dollars and amo!nt of living space& >e may
relocate eBisting b!ildings% either on another part of the same parcel% or off the parcel entirely&
>e may swap land we obtain for other land that is contig!o!s to land weDd li$e to develop into a
larger overall parcel& >e may also b!ild or place prefabricated garage-s. on the property% if
re#!ired by reg!lation or the needs of the new b!yer-s.& >e may co+locate commercial b!ildings
on the properties where zoned for them% where m!lti+!se properties may be appropriate +
depending on the condition of each parcel&
E(')
Prospective Homeowners Association
Organizational Synopsis
<inancials
'& <!nding
a& Start !p
b& 6ntermediate
c& ridge
d& 8and
:& Use of <!nds
a& Salaries2 7anagement% Assistance
b& *ons!ltants2 Planners% *ontractors% *onstr!ction 7anagers
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Prospective Homeowners Association
Organizational Synopsis
7ember Profile O!tline
>e may create a point system at some date% which allows for the following types of members
to receive greater priority for obtaining a home& <or now however% it is first come% first served&
Phase One
5mergency >or$ers2 <irefighters% Police% ,!rses% 3octors%
Other Health >or$ers% "ransit >or$ers 4 "eachers
Phase "wo
Hospitality >or$ers2 Hotel Staff% Resta!rant >or$ers%
Retail *ler$s% Small !siness Owners
Phase "hree
*harity Staff% <arm >or$ers% *hildren of Older Ad!lts%
Seniors% 3isabled% Aeterans
Phase <o!r
;eneral P!blic -as they become members.
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Prospective Homeowners Association
Organizational Synopsis
7ember Responsibilities% enefits% 3!es 8evels
4 Application for 7embership
The Prospective omeowners !ffordable"!ttainable ousin# $nvestment %und
will be based on the initial membership drive, sales of life policies, donation and down payments&
<ee Str!ct!re + >e have m!ltiple classes of membership% incl!ding2 Angel% >or$ing 4 S!pporter
"n#els are individ!als who are donors and afford to contrib!te on a large basis for "he Pro1ect&
Supporters can be 6nvestors 4 Home !yers% or those who 1!st want to receive the newsletter&
$ome Bu%ers may also be 6nvestors% as can >or$ing 7embers&
&or'in# (em)ers are willing to perform wor$% as well as s!pport the goals financially%
incl!ding2
o Attend p!blic meetings 4 for!ms% learn% participate% add val!e% listen 4 advocate for
organization&
o >rite% call or meet elected officials 4 establish o!r interests in their minds and agendas&
o Attend membership meetings 4 perform f!nctions on wor$ committees
o Sit on this PHA=s board of directors% raise f!nds 4 otherwise networ$ in comm!nity&
o Register to #!alify for homeownership thro!gh o!r processes -"3.&
o 5nlist new members and receive red!ction in membership fees&
o Pay d!es and contrib!te generally to the organizationDs growth&
o Have opport!nity to invest in real estate at different commitment levels
&or'in# (em)er *Bron+e,
-,ote2 >or$ing 7ember fee incl!des
credit for Homeb!yerDs ann!al fee% since
a >or$ing 7ember will also be a
Homeb!yer.&
G':) initiation fee 4 G:/ monthly -G:?/ ea& p(ann!m. -G:/
rebate for each additional member signed !p by referral& One
month=s d!es credit is ded!cted from the member=s monthly
d!es.&
Silver -Contri)utor- GE)(monthly% after G':) 6nitiation <ee& -GF// ann!ally. as
above% pl!s may attend special events% with officials and
other prime movers in o!r effort&
.old -"ctivist- G')/(monthly% after G':) 6nitiation <ee& -G'%@// ann!ally. as
above% pl!s agrees to write and telephone on behalf the
organization to help it develop&
Platinum -Benefactor- G:)/(monthly% after G':) 6nitiation <ee& -G0%/// ann!ally. as
above% b!t receives eBtra attention by leadership(serves as
mentors and helps to ma$e connections thro!gho!t the
comm!nity at a higher level&
Ne/sletter -incl!ded in all levels above. G:/&// per ann!m
0onor mem)ership G'?)&// per ann!m -pl!s donation. after initiation fee&
Business Supporter mem)ership G))/&// per ann!m -pl!s employee ho!sing o!tlay.
1nvestor mem)ership G'?)&// per ann!m -pl!s initiation fee 4 investment.
-'. 3onor membership totals above obvio!sly do not incl!de any donation by donors&
>e might have levels of donation as honorary membership in the f!t!re&

<or more information% please contact ;ary R& *oo$ -@/). ?)/+:@'F&
>e cannot g!arantee any res!lts from yo!r investment in membership& >e are going to ma$e every effort to try and
ens!re that o!r wor$ comes to fr!ition% as in any other investment yo! might ma$e& "his is why% li$e any legitimate
non+profit% we are wor$ing to p!t together a board of directors% made !p primarily from persons eBperienced in the
b!siness comm!nity& ,ote2 >e have not yet incorporated nor filed for taB+eBempt stat!s% so there is no g!arantee
that these membership fees will be taB+ded!ctible& >e are doing the paperwor$ to start the process now&
-7embership does not g!arantee a home for each member.&
'/(')
Prospective Homeowners Association
Organizational Synopsis
Affordable(Attainable Ho!sing
6nvestment(3evelopment *o+op <!nd
entrepreneurial solutions to difficult issues!
Where will this fund (to purchase land, and develop it, by placing
quality homes on a well-designed community), come from?
The 2and purchase escro/ co-op fund comes from that which we will create each time
we find land to hold the receipt of down payments from b!yers of homes&
o "his is a common method of pre+ban$ financing to show developers can pay the
ban$ for the loan.& "he way it will wor$ is not told in simple terms% b!t can be
allegorically told by the phrase H<irst in(<irst O!tH& "hose members p!tting f!nds
into the escrow -sec!red. acco!nt first% will be the first members in line to b!y
property&
o 6f for any reason% properties -since ban$s don=t typically loan on !nimproved
land. that we identify wo!ld be good for o!r members% b!t there is not eno!gh
money in the escrow f!nd to ma$e a p!rchase o!tright% we wo!ld call on
additional members who are down the line of the neBt+in+lines to own% to p!t !p
their f!nds to help the Habove+in+linesH to b!y&
Development Co-op Escrow Fund
This 0evelopment Co-op scro/ Fund /ill also come from mem)erships3 donations
of land3 cash3 lon#-term leases on land3 as /ell as #rants3 development of charita)le
remainder trusts3 a Communit% 2and Trust3 and an endo/ment fund - all of /hich
/e are /or'in# on no/.
On the non+profit side of o!r organization% the affordable ho!sing developer
company% we plan on wor$ing with 8ocal city% *o!nty% State and <ederal
departments% as well as <o!ndations to develop aspects of o!r b!siness& "here are
f!nds which provide organizations li$e o!rs with Htechnical s!pportH and
cons!lting% as well as loans& <or eBample2 HDevelopment Loan Program -- The
'evelopment (oan Pro#ram is desi#ned to assist small developers whose pro)ects
would not otherwise be funded throu#h conventional sources #iven the developer*s
e+perience, capital, pro)ect size and"or location& This pro#ram provides up to
,-..,..., on a /.0 reimbursement basis, for soft costs incurred in connection
with a development that will be financed1&&&
Otherwise there are bridge loans for the time period between b!ying the land and
the time the properties are sold&
As well% there are f!nds thro!gh the local ban$ing system re#!ired to be reinvested
into the local comm!nity% by the federal *omm!nity Reinvestment Act&


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Prospective Homeowners Association
Organizational Synopsis
Santa Barbara County Prospective Homeowners
Project Round A - Plannin ! Fund-raisin
Below here is an example of a pool of money we would have if prospective home buyers put their potential
down payments up front to help the organiation purchase land and begin planning, design ! developing"
#his would be done in phases, over a period of time and we might do one or more of three things to raise
the total funds for building$ borrow (but then there would be interest on the loans we would have to pay
bac%, which would cut into our net), receive investments and donors"
&owever, mortgage payments at '( interest would pay bac% investors, as would eventual resales of a
fraction of the homes at mar%et rates for profit which would be reinvested into the plans and development
of more homes"
buyers home
price
)*( down
#otal +own
,ayments
#otal -ales .inus
/+owns/
#otal 0ncome
1( 2inanced
over 3* years
4* 54,*** 5,4** 354,*** 3,354,***
34* )64,*** )6,4** 7,354,*** 38,354,***
64* )54,*** )5,4** 7,354,*** 38,354,***
64* 64*,*** 64,*** ',64*,*** 4',64*,***
)** 3**,*** 3*,*** 3,***,*** 65,***,***
'%///
"otals )1,354,*** )'4,354,***
#otal -ales including down payments
'@0%E)/%///
#otal 2irst-buyer -ales ! 2inancing ,ayments over 3*
years (+oesn9t include re-sales:, if any)
(These figures have been double-checked; as of July 12, 2004)
These figures do not yet include fund-raising from Donors, nor Investors, nor gain in value from
holding the properties over a period of time. (Nor does this show cost of the dividends to be paid
out to investors)
4e-sales2 2ome homes may be b!ilt for sale at mar$et or near+mar$et rates% so that we can
generate additional income to p!rchase more land and b!ild o!t more properties with affordable
ho!sing that we might have had we not done so&
Additional Sales Cateories
;ranny <lat Sales
6ndivid!al 8ots 3eveloped at
7ar$et Rates
<arm land developed as a co+op
b!siness% with homes alongside
*ommercial !ilding or
3evelopment Sales
':(')
Prospective Homeowners Association
Organizational Synopsis
Production5Sales Scenarios
When we find a large piece of property and are successful in applying for permits to
develop it - after getting it oned as necessary, for example$
-ub;ect -ample ,roperty (un%nown) 44 acres <5 million
0f we started our larger development off with homes at the top of the scale for which we
want to develop /affordable/ at, with this sie property, we could if oned for our needs,
develop )** homes" &ere9s what the scenario would loo% li%e$
$ome Price No. of homes 0o/n Pa%ment Total 0o/ns 2and 0o/n
0//%///&
)**
0/%/// 0%///%/// '%?//%///&
Balance to
0evelop
Cost ea. $ome
Pre-fa)ricated
First 4ound
0eveloped
6 Sold for this
Pro7ect
Total
$omes Cost
Permits
'%9//%/// @/%/// )* per wee%,
over )* wee%s
@//%///&
Sta##er 1ncome from $ome Sales
Carryin Costs
o# $and until
sold
Cost #or Construction %anaer&
Civil Enineer& Surveyor
#he following are the Steps in $and Purc'ase ! Development ! t'e Processes
w'ic' re(uire Financial interaction (#he purpose for laying these items out in -teps is
because we are compiling a complete list of all of the steps which occur during the acquisition
and development process, including those interactions with the =ounty ,lanning ! +evelopment
office and according a cost to each" #his list below will necessarily become much longer for that
purpose, but for now will suffice as the ma;or categories of financial interactions to actually
ma%e a purchase)
'& Offer to p!rchase
:& PHA ma$es down payment on land
0& *osts of p!rchase finance payable to financing entity -ban$% landowner%
etc&% !nless we pay for the land in f!ll from the b!yerDs escrow f!ndC
*arrying costs of owning land !ntil homes are sold.&
?& Holding the mortgage paper to receive additional income% rather than 1!st
the sales of homes&
)& Property 7anagement fees payable by home b!yers to Association
'0(')
Prospective Homeowners Association
Organizational Synopsis
)rani*ational +ncomes
#rom di##erent cateories to #inance action
2und-raising>donations
.emberships
G:'E%///
-ales of bumper stic%ers
G?%9)/
+own payments from home ),*** buyers
(escrow fund development)
G'@%0E)%///
Sales of ;ranny <lats -data coming from b!siness plan.
Sales of *ommercial ldgs -data coming from b!siness plan.
affordable office space: charities & start up small business
<arm land developed as a co+op b!siness% with homes alongside
-data coming from b!siness plan.
6ndivid!al 8ots 3eveloped at 7ar$et Rates to f!nd raise
-data coming from b!siness plan.
?ther fund-raising activities (public events$ ba%e sales, etc")
(data coming from business plan)
@rants (&A+, etc) (data coming from business plan)
=haritable land trusts (data coming from business plan)
*haritable Remainder "r!sts -individ!alsD.
-data coming from b!siness plan.
=ommunity Band #rust
(data coming from business plan)
6nvestors -PHA Real 5state 6nvest& *o&.
-data coming from b!siness plan.
6ncome from notes financed -data coming from b!siness plan.
"entative S!btotal -as of I!ly ':% ://?. G'@%)F9%9)/
alance d!e for sales% after down payments

'?(')
Prospective Homeowners Association
Organizational Synopsis
>hat >e ,eed to 3o
'& >or$ing *ommittees
:& 6dentify Reso!rces2
a& 8and
b& 3onors
c& Start !p <!nds
i& onding and paying for b!ilding transportation to b!ilding siteC
contingency f!nd for home problems% s!ch as crac$ed walls !pon delivery&
ii& 6ns!rance
iii& ridge between land(b!ilding p!rchase 4 sale
iv& *ost of b!ilding roads% fo!ndations% driveways% !tilities
v& *ost of providing par$s% p!blic gardens 4 s#!ares% social centers% day care
centers&
vi& Pre+development fees by the city2 permits(waivers% etc&
vii& O45 6ns!rance for the both boards of directors
viii& Stipend for the corporate board
d& Officers for both corporations
e& 6ncorporate two b!sinesses
f& Hire cons!ltants
i& Architect!ral design of comm!nity and lot layo!ts
ii& S!rveyors for layo!ts of
'& Homes% *ommercial !ildings% <arms
:& *omm!nities
g& Obtain members for two boards of directors
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