Enterprise Community Partners has announced the launch of a fund to provide renters with the wealth-building opportunities traditionally limited to homeowners, while preserving up to $1 billion in affordable and workforce homes.

The Renter Wealth Creation Fund, launched by the nonprofit’s affiliate, Enterprise Community Investment, aims to raise $250 million from investors. Through the fund, renters can earn both immediate cash back for on-time rent payments and the opportunity to share in the appreciation of the property over the long term, while investors will receive a return on their investments. Like homeowners cashing out from a sale, long-term residents can receive a share of the profits if the property is refinanced or sold for a profit. Investors will receive a targeted financial return of 4 percent, and residents who lived in the building for at least four years are expected to receive 80 percent of the financial upside thereafter as an additional cash-back reward. Enterprise expects the fund to help preserve 7,000 homes.

“The Renter Wealth Creation Fund is a direct response to what renters have told us they want: more cash in hand today, and the opportunity to achieve upward mobility over the long term,” said Lori Chatman, president of Enterprise’s capital division. “With their feedback, we created a financial innovation that offers returns to investors, loyalty and stability to property owners and—for the first time—real wealth-building potential for renters.”

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