Customized affordable housing solutions
Terra uses our expertise in uncommon leasehold ownership structures and complex real estate development management deals to create tailored affordable housing solutions for projects in which a typical rental or condominium model is not appropriate.
Leasehold development is a cross between owning and renting. A resident purchases a long-term leasehold interest, which is registered on title. When they move out, the resident gets their money back, minus a deduction for refurbishing and remarketing. Different mechanisms can be used to share any proceeds from market appreciation after the resale of a unit.
Our custom-built approaches range from affordable leasehold homeownership, which helps first-time home buyers find affordable homes and build equity, to life lease housing, which provides seniors with financially secure, maintenance-free, socially connected housing, enabling them to maintain independence and vitality as they age.
What is life lease housing?
Life lease housing is an approach to seniors housing typically designed for older individuals who have an existing housing asset, usually a mortgage-free single-family home, and are looking to downsize to live a community with others in a similar life phase. Life lease housing is owned and operated by a trusted nonprofit.
How does affordable leasehold homeownership work?
Our proprietary affordable leasehold homeownership model is designed for low- and middle-income individuals and first-time home buyers, usually in urban environments. It uses long-term government-partner financing as a way for new buyers to purchase only part of their home, increasing affordability for younger people. The building is owned and managed by a nonprofit organization, protecting the resident from unexpected costs and maintaining affordability over time.
Key Contacts
Stephen Mancer
Principal, Director of Real Estate
Terra Leasehold Developments
[email protected]
212 328 7064
Kate Mancer
Life Lease Housing Expert
Terra Leasehold Developments
[email protected]
604 908 8203
Simon Davie
Principal, Chief Executive Officer
Terra Social Purpose Real Estate
[email protected]
604 639 0472
Services
Terra provides complete development management services for clients who are looking for leasehold ownership structures outside the typical models. We work closely with you to understand your unique objectives, assets and opportunities to create a structure and solution that suits your needs.
Process
Our process revolves around your objectives. We start by understanding your goals, assets and opportunities, then we build and execute a tailored development plan that best meets you and your community’s short- and long-term requirements. Terra assembles and manages a development team that, with your participation, guides the project from the very earliest stages through the end of the first year of operations.
Leasehold development process
STEP 1
Create a project plan
Clarify project objectives and identify the appropriate leasehold structure. Identify available resources, fill in the gaps and define the project concept.
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STEP 2
Determine feasibility
Determine how the project can proceed based on municipal approvability, budget requirements, funding availability and market conditions. Identify partners and create the overall legal structure for the project. This phase includes presales of the leasehold units.
STEP 3
Prepare for construction
Confirm the capital cost budget. Obtain municipal and other necessary approvals. Secure financing and finalize contracts as required.
STEP 4
Support construction
Guide you through the construction of the project, resolving issues, managing the construction claims process and accounting for project costs.
STEP 5
Move-in and post-construction review
As construction completes, we oversee closing sales of the leasehold units and organize the move-in. Then we finalize project costs and manage construction deficiencies and warranty items.
