Scattered Site Rental Toolkit:

Business Planning for Development & Management

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D. Tips for Making the Conceptual Sale

You will have to make the case to your Board, Neighborhood Stakeholders, Local Government Subsidy Providers, and Other Funders that SSR is worthy of their support. A sound business plan will force you and your board to thoroughly plan this new line of business and help you persuade partners to support your program. Below are some strategies for “selling” your business plan to your board and partners.

Strategies for Making the Conceptual Sale

General Tips
1. Position SSR as investment rather than poverty housing.
2. Remind Folks that SSR will pay local real estate taxes.
3. Make the case that quality, well-managed rental housing contributes to stabilization.
4. Illustrate how SSR can be done right via a solid Business Plan for Production and Management.
5. Address push-back from neighborhoods not wanting any more low-income housing.

To Your Board
1. Plan with your Board how to add SSR as a new line of business whose risks can be managed.
2. Illustrate how SSR can be done right via a solid Business Plan for Production and Management.

To The Neighborhood
1. Demonstrate the stabilization impact of your project.
2. Dispel misperception that this is public housing or Section 8 housing.
3. Show neighbors your tenant profile so they can see who will be moving in.
4. Manage units to demonstrate that they are good neighbors.
5. Select tenants carefully.
6. Show how you are adding to the tax base.

To Local Government Subsidy Providers
1. Some local governments avoid SSR because they:

2. Others are realizing that some rental does not fit the LIHTC model.
3. Establish systems for ongoing compliance management.
4. Show government how you will ease their regulatory burden.

To Lenders and Other Funders
1. Provide details on costs to make the case for reducing debt and providing reserves to meet higher annual operating costs.
2. Show them your business plan.
3. Be specific about the type of financing you need (long term debt, revolving line of credit, etc.).

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