Galveston Essential Workforce Housing (GEWH) Fund

Galveston Essential Workforce Housing (GEWH) Fund

Overview: The GEWH Fund is a mission-driven capital fund created to support the development of workforce housing on Galveston Island. It is a statutory Delaware public benefit limited liability company formed by Build Galveston, a nonprofit community development corporation.

Purpose & Mission

Primary Goal: Create a $5,000,000 source of capital to support the development of workforce housing in Galveston, with objectives to:

Support development of 150 additional residential units of attainable workforce housing over 5 years

Enable workforce members (first responders, teachers, healthcare workers, young families) to afford to live in healthy neighborhoods on Galveston Island

Increase supply and affordability of workforce housing to strengthen the entire Galveston community

Geographic Scope

Location: Galveston Island, Texas

Focus Areas & Eligible Housing Types

The Fund supports:

Single family rental housing

Multi-family rental housing

Single family homeownership

Mixed-use residential real estate development projects

Industry or employer-specific workforce housing programs (e.g., programs for teachers, police officers)

Target Population

Workforce Housing Definition: Residential units targeted for households earning between 80% and 120% of Area Median Income (AMI). Developments may include some units eligible for housing subsidies but this is not required.

Beneficiary Groups:

Area residents and business owners

Employees and potential employees of area businesses

Homeowners, potential homeowners, tenants, and prospective tenants

First responders, teachers, healthcare workers

Young families

Those benefiting from services provided by educated workforce

Background & Need

Key Statistics:

More than 65% of island workers (approximately 21,255 people) commute from off-island

50% of Galveston residents have a housing cost burden (income to housing cost ratio too high)

Since 2010, Galveston has lost an estimated net total of 775 families with children

Persistent lack of investment in parts of Galveston with associated social issues

Shortage of attainable workforce housing is a primary cause of family loss from the island

Investment Strategy

Fund Type: Source of "patient capital" and gap lender providing below market-rate loans

Loan Terms: 5-year loans at 2% interest rates

Standard Loan Product Features:

Unsecured/Subordinated Debt

Targeted Below Market Interest Rates

Lower Than Standard Origination Fees

Higher Than Standard Loan-To-Value Ratio

More Flexible Borrower Credit Standards

Lower Than Standard Debt Service Coverage Ratio

Funding Approach: Leverages limited resources by:

Attracting other private and public resources

Supporting projects with smaller weight on GEWH Fund resources

Acting as "gap" lender bridging shortfall in available commercial financing

Contact Information

Organization: Build Galveston (501(c)(3) Nonprofit, EIN 85-4187449)

Phone: (409) 240-9177

Email for Inquiries: info@buildgalveston.com

Email (General): connect@buildgalveston.com

Website: buildgalveston.com