Investing in the Landlord Risk Mitigation Fund
The Landlord Risk Mitigation Fund was started in 2014 with $10,000 in seed funding from a City of Fargo Social Services grant and a pledge from Lakes and Prairies Community Action Agency. Those funds and other donated funds are held in trust at the FM Area Foundation.
There are three ways to invest in the Landlord Risk Mitigation Fund
- Contributions under $5,000 can be made directly to the FM Area Foundation, designating the Landlord Risk Mitigation Fund. Such contributions are used only for landlord indemnification.
- Contributions of $5,000 and greater can be made to the FM Coalition for Homeless Persons Endowment Fund, held at FM Area Foundation, designating a preference for the Landlord Risk Mitigation Fund. This contribution level qualifies for the North Dakota Chairtable Income Tax Credit. Your accountant or tax attorney, the Coalition director, and/or staff at the FM Area Foundation can supply more information about the tax credit.
- Contributions of any amount can be made to the FM Coalition for Homeless Persons, designating the Landlord Risk Mitigation Fund. Contributions to the Coalition may be used to help offset the costs of operating the program (staffing, printing, communications).
Contributions to the fund are tax deductible. The Coalition is a 501c3 corporation in good standing. The EIN is available upon request.
About the Fund
The goal of the Coalition's Board of Directors is to grow the Landlord Risk Mitigation Fund to $50,000 by the end of 2017. The money is dedicated to indemnifying the new leases of homeless households referred by partner agencies and cannot be accessed or used by the Coalition for any other purpose. Decisions about applications are made by an advisory committee comprised of social service providers, real estate experts and landlords.
The money held in the fund directly impacts the number of people the Landlord Risk Mitigation advisory committee can approve for coverage. The history of similar funds is one of growing principle, as payouts are infrequent. In its first year of operation the Coalition approved thirty households for the fund and made one payout of $500 for a tenant that remains housed. The payout was a result of a tenant's lack of householding skills and was addressed by the landlord and the case manager working together to keep the individual in housing and address the skill deficit.
The Fund is a direct benefit to people experiencing homelessness who have barriers to stable housing, such as credit issues and encounters with the justice system. It is a direct benefit to landlords who need to responsibly manage their properties for the good of all tenants.
Contributions can be made to the Landlord Risk Mitigation Fund or the FM Coalition Endowment Fund c/o FM Area Foundation, 409 7th St. S, Fargo, ND 58103. Call FMAF (701) 234-0756 or the Coalition director (701) 200-0855 with questions.