There’s a section of the country that accounts for 90% of the U.S. landmass and 20% of the population. More than half of the renters here report incomes below $35,000 a year, leaving more than 4 out of 10 cost burdened by housing.
We’re talking about rural America. Few understand the ongoing affordability crisis raging across this underreported sector better than Dana Boole. As president and CEO of Raleigh, North Carolina-based CAHEC, one of the nation’s largest community investment companies, Boole has emerged as a forceful affordable housing advocate on Capitol Hill and beyond.
How does the long-time affordable housing leader view current challenges? How can innovation and boldness help stem the crisis? Boole offers perspective and advice.
One of the affordable housing challenges facing rural America is geography—widely scattered smaller-unit assets versus urban density. What issues does this present?
It’s all about maximizing impact. Consider the preservation of aging assets. For maximum efficiency, it’s best to aggregate and capitalize groups of communities into a single portfolio. A one-at-a-time approach is less than optimal and takes years to revitalize multiple assets. Investor appetite—outside of a high CRA [Community Reinvestment Act] need—is weaker for a geographically isolated community. A bundled strategy is best.
Can you describe CAHEC’s approach to portfolio aggregation?
For nearly 20 years, we’ve been aggregating assets—as few as six and as many as 40—into a single issuance. Our strategy is straightforward—seasoned general partners, strong funding sources, and volume commensurate with investor appetite. One must understand the needs, concerns, and limitations of their partners. In the final analysis, it’s all about relationships.
What about risk?
Don’t be turned off by “perceived” risk. If you are, you’re in the wrong business. With our first portfolio, we were like ducks paddling in a new pond. All calm and confidence on the surface with USDA-RD [U.S. Department of Agriculture-Rural Development], lending agencies, and bond issuers. Below the surface? We were paddling like mad. This concept was new to everyone. Our partners didn’t want to just hear this concept would work. They wanted confidence that it would be successful, impactful, and make a real difference. As we view today’s performance, we’ve met and, often times, exceeded our original expectations.
You and your team have a reputation for problem solving. How does this spirit reflect itself in CAHEC today?
Many organizations are focused on a single business line. For years, CAHEC was no different. All we’d talk about was equity. While that’s perfectly fine, we simply believed that solving community problems required so much more. That’s why we methodically expanded our array of products and services both organically and through acquisition(s). Today, CAHEC is a leading community investment company focusing on syndication (equity and debt), preservation, general partnerships, property management, and charitable initiatives through the mid-Atlantic and South.
Think of it as arrows in the quiver. A bigger quiver means more arrows and more solutions. I spend a fair amount of time talking policy in Washington, D.C., and am often asked my thoughts on other aspects of affordable housing. In the past, I didn’t always have a good answer. Today, I can offer much broader, more authoritative insight. That adds value to a story more elected officials and agency leaders need to hear and act upon.
Visit cahec.com to learn more about CAHEC’s mission and vision.
