At Youth Rebuilding New Orleans, our program educates and empowers young people while at the same time reducing blight and providing affordable homes for deserving teachers. We purchase blighted and abandoned homes, and our youth volunteers learn valuable construction skills while renovating these homes. When each home is complete, we sell it to a teacher for less than the appraised value of the home. This makes homeownership a possibility for some who could not otherwise afford a home, and starts each teacher off with equity in their home.
How We are Different
Our Financial Model
YRNO creates revenue by purchasing and repairing distressed homes, and selling the homes for more than our investment but less than fair market value. Homes are purchased at a discounted rate and repaired using volunteer labor whenever possible. Net income from homes sold enables YRNO to cover overhead expenses and build capital reserves. This sustainability model give YRNO increased independence from reliance of grants and fundraising. All money that is raised can go directly to expanding our impact and increasing our capacity.
Each home sale creates equity for both YRNO and the purchaser. The difference between market value of home and sales price of the home creates equity for the purchaser and the difference between YRNO investment in the home and sales price of the home is YRNO net income. This “income” is used as an overhead allocation to cover a portion of annual operating expenses. The remainder of YRNO net income is reinvested into expanding YRNO’s capital base, creating capacity to purchase andrepair more houses at one time.