Preserving affordable housing doesn’t have to mean sacrificing investor returns. Dr. Canaan Van Williams breaks down how his firm targets naturally occurring affordable housing properties—older, often overlooked apartments, manufactured home communities, and SRO motels—and keeps rents 20–30% below market while still structuring “sustainable bonds” that (at the top tier) advertise a 75% total return profile over 36 months. The conversation gets into how these private, unlisted debt securities work, who they’re for (accredited investors), why the strategy focuses on preservation instead of new construction, and how factory-built homes can be deployed quickly to bring more units online without the waste of traditional site-built development.
Guest Bio
Dr. Canaan Van Williams is the managing founder of Proactive Sustainable Bonds and describes his organization as a Reg D 506C fund issuing sustainable bonds through the Proactive Realty Income Fund II to LLC. He works in the affordable housing and social impact housing space, focusing on low-income and workforce residents across multiple states, and notes third-party impact verification efforts including Morningstar Sustainalytics, UNPRI, BlueMark, and an Impact Evaluation Lab assessment.
Episode Highlights and Chapters
00:00 – The episode’s focus: affordable housing, manufactured homes, and raising capital.
01:55 – Dr. Van introduces Proactive Sustainable Bonds and the Reg D 506C structure.
02:28 – What the “sustainable bonds” are: private, unrated debt securities for accredited investors tied to affordable housing outcomes.
04:12 – How the bonds are secured: real estate hard assets and property insurance (not a public rating or guarantee).
05:22 – How capital is used, bridge debt takeout, and Dr. Van’s personal investment in the fund.
06:39 – Hybrid approach: mostly funding their own strategy, with some allocation possible to aligned projects/managers under the PPM.
07:26 – UN Sustainable Development Goals discussed and how the strategy aligns with specific SDGs.
08:24 – Why a bond structure instead of a typical private debt fund: proving a profitable-and-impactful model.
08:43 – Liquidity and duration: private, unlisted, illiquid; commonly 2–3 year terms with longer options.
09:23 – Target assets: manufactured housing communities, multifamily, SRO motels; prioritizing “impact rate of return.”
11:36 – Defining NOAH (naturally occurring affordable housing) and why it matters.
13:38 – Why new construction rarely replaces NOAH and why preservation is a key strategy.
14:46 – For-profit vs nonprofit: how a for-profit social impact mandate intentionally preserves affordability.
16:46 – The nonprofit support layer: housing essentials, transportation support, and behavioral workbooks for second-chance populations.
18:59 – Manufactured homes in the model: sourcing factory-direct homes, rapid deployment, and passing savings to residents.
20:05 – “We don’t build anything”: focusing on distressed properties and infrastructure upgrades in existing parks.
21:02 – Investor programs and tiers: accredited-only, minimums, current income approach, and the headline 75% return tier details as described.
24:10 – Closing thoughts: execution, claimed investor repayments to date, where to learn more, and Dr. Van’s book.
Contact Information
Proactive Sustainable Bonds website: www.sustainablebonds.com
Email: [email protected]
Phone: 1-800-626-2089
Direct: 803-989-8264
LinkedIn: https://www.linkedin.com/in/dr-canaan-williams-aa3924b/
Host: Eugene Gershman – https://giscompanies.co/podcast/
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