Bank of America executive Howard Epstein established the Arizona Housing Fund in 2019 to provide a simple way for corporations, foundations and individuals to fund more permanent, supportive, and affordable housing. After decades of serving on nonprofit boards working to address the growing issue of homelessness, it was clear government could not do it alone. It would take an all-hands-on deck approach that included the private sector to make a positive change in homelessness in Arizona.
Epstein quickly found the private sector folks with whom he met responded in an overwhelmingly positive way, myself included. The corporate leaders I’ve introduced to the AZHF welcome the opportunity to get involved and help make our community a better place. The Arizona Housing Fund is an easy way to directly fund more housing for the thousands of Arizonans experiencing homelessness. Over the past four years, the Fund has generated more than 5,000 donations, raised $1.73 million, and granted $1.3 million to nonprofits to build and operate more housing units for those experiencing homelessness. We are making a difference, but more needs to be done. I encourage business leaders across our great state to join the cause and help ensure that every Arizonan has a place to call home.
How Does the Arizona Housing Fund Work?
Howard took inspiration from programs such as the PetSmart Charities Foundation that has experienced great success in raising millions of dollars from simply asking customers to round up their payment at checkout. The Arizona Housing Fund is an evolution of the cash register roundup program. Instead of asking people to round up at the cash register, there are two fundraising platforms that make it easy to make a small donation tied to real estate transactions: The Escrow Donation Program and the Rental Application Donation Program.
Escrow Donation Program
Homebuilders, developers, real estate agents and brokers, title companies, and buyers and sellers voluntarily participate in the program. Participants donate $25 or more to the Arizona Housing Fund for each residential real estate transaction and $100 or more for each commercial real estate transaction. There is a one-page form that home buyers and sellers complete when closing documents are signed, and the title company sends a donation directly to the Arizona Housing Fund. Today, we have dozens of buyers, sellers, title companies, real estate agents and brokerages participating. Real estate agents and brokerages typically tally up the number of closings they’ve had each quarter and cut a check to the Arizona Housing Fund with a donation for each transaction. Some of these companies, like the 2022 Arizona Housing Fund Partner of the Year, North & Co., excitedly share their monthly donation amount at monthly company meetings and promote it on their social media channels as well. They know that doing good isn’t just the right thing to do, but it’s good for their company culture and it’s good for business.
Rental Application Donation Program
We are now rolling out the Lease Application Donation Program that was successfully piloted by NexMetro over the past year. Through the program, apartment developers and property management companies make a $5 donation to AZHF for each lease application received. They also give their residents the opportunity to donate to the Arizona Housing Fund directly in their online payment portal.
Why Doing Good Is Good for Business
AZHF partners say their customers and stakeholders agree that a successful community is one where the population has access to housing at all socio-economic levels. With the rising cost of housing in Arizona, too many people are falling through the cracks — many of them dealing with disabilities, mental health issues, addiction and abuse. They need housing they can afford with the wraparound services to help them get back on their feet.
None of us want Phoenix to become another Los Angles, San Francisco, Seattle or Portland, where the number of people experiencing homelessness may have spiraled to such a level that a solution is difficult to see. Creating housing solutions at all levels is essential. We have had nothing but positive responses to our involvement with the Arizona Housing Fund.
Those who have chosen a career in real estate understand the importance of housing. I urge my colleagues to get on board and be a part of the solution. A community where all residents have safe, affordable housing means a better community for everyone. It’s good for our state and good for business.
Tim Sprague is a member of the Arizona Housing Fund Advisory Committee and the founding principal of Habitat Metro, LLC, a developer of infill projects that include the FOUND:RE Phoenix Hotel, Portland on the Park condominiums, and the ECO PHX and ECO MESA sustainable apartment communities.
Did You Know: A Morrison Institute for Public Policy study has quantified a 29% cost savings for each chronically mentally ill person who has stable housing and support services, breaking the expensive cycle of emergency room visits, police interactions and incarceration. The average cost for a person with chronic mental illness who is homeless is about $73,000 vs. $52,000 for those in permanent supportive housing.
