Affordable Housing Faster
Functional Housing uses master leasing to make existing apartment buildings affordable. We lease a building — guaranteeing occupancy and income for the owner — and then rent units at affordable rates. We also partner with local organizations to support the people who move in.
Master Leasing, Explained
Construction can take years, but communities need more affordable housing right now. Master leasing is our solution for increasing affordable housing stock at a fraction of the cost and time required for traditional development.
In a master lease, Functional Housing signs a reduced-rate, multi-year lease on an entire building, then we rent the units at below-market rates. Owners and developers get guaranteed income without vacancy risk, and we take care of day-to-day building management. Our residents get affordable rates, quality homes, and support from nonprofit partners who can help them earn more, save more, and plan for the future.
A master lease is one lease on a whole building. Instead of signing multiple leases with multiple residents, owners can sign just one lease with us. We handle the rest.
One Building · One Lease · Affordable Homes
Proving a Model, Not Just Filling Buildings
Functional Housing exists to prove a model, not just to fill buildings. As our pilot partnerships come online, we're measuring the value we create for residents — and the case for master leasing as an affordable housing strategy — in three ways.
In addition to creating affordable housing faster, our model can produce rents as low as $650–850 a month with multi-year guarantees. This means that residents can stay anchored in the community, focused on building skills and saving for the future. A mix of affordable and market-rate unit rentals in the building ensures that we can meet our financial obligations to both owners and residents.
We also believe in creating affordable housing that sets the conditions for people to be successful in life. Every Functional Housing lease will incorporate wraparound support resources, facilitated in collaboration with partner organizations, for all residents. We aim for 75% of our residents to build a stable savings fund of at least $2,000 within 24 months.