Switchpoint Real EstateSheet A-1

The top floor helps pay for the first floor.

This is a working model of a three-story Switchpoint building with business and services at street level. Set the income level for each floor, commit each source of capital, and the building goes up as the money comes in.

Every figure on this page is illustrative. Real numbers come from each project’s pro forma.

1Decide who lives on each floor

Area median income, or AMI, is how housing programs set rents. A home at 30% AMI is priced for someone earning 30% of the local median, with rent held to about a third of that income. Move a slider to change who the floor is built for. In the drawing, deeper blue means deeper affordability.

Rental assistance on supportive homes. A voucher pays the difference between what a resident at 30% AMI or below can afford and a fair market rent. Business and services at street level, such as a coffee shop, child care, and case management offices that pay into the building.

2See what each floor brings in

Operating costs are about the same on every floor. Rent is what changes. Supportive homes also carry the cost of on-site case management.

Floor	Income level	Rent	Net per month
Whole building, per year

3Commit the capital

A building like this is paid for by several sources, each with its own rules and timing. Check each one as it commits and watch how far the building gets. The amounts change with the income mix you set above.

4What it takes to top out

Gap capital goes in last and does the most. Tax credit investors and lenders size their commitments to the rents. Philanthropy and mission investment cover the distance between what the rents can carry and what the building costs, and that distance is what lets the lowest floors stay affordable for good.

Jeff Quayle
Chief Real Estate Officer, Switchpoint
jeff.quayle@switchpoint.org
435.218.4566