50 Rejections led to $13M in Affordable Housing - how she did first 3 deals without public funding!

To support LA Mas, the first two people who message me directly on Linkedin (@kentfaihe) - I will personally buy you a ticket to LA Mas's annual fundraiser, Rooted, on July 14 from 5-8PM at Huron Substation.On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Helen Leung, Executive Director of LA Mas, shares how her Northeast Los Angeles nonprofit acquired 23 units across three properties in 18 months, unlocked $13 million in two years, and preserved affordable housing for working class immigrant families without a single dollar of public money.LA Mas focuses on Affordable Housing preservation in northeast LA: buying multifamily properties before they are flipped and keeping rents affordable for long-term residents. Helen walks through the four-part capital stack that made it work, the deal structure that finally made the numbers pencil, and what 50 rejections taught her about getting to yes.In this episode, Helen and Kent cover:• 23 units acquired across 3 properties in 18 months with no public funding• The 4-part capital stack: Self-Help Ventures Fund, program-related investments (PRIs), individual community investors, and LACAHSA• The deal that pencils: $2,800/month ADU cross-subsidizing $1,000/month legacy rents on a $1.6M project• How Helen entered escrow four times without all the money identified• Why the first 50 rejections each came with a lesson• Resident governance: long-term community members vote on who fills vacancies• The Anna story: four generations staying in one buildingCommon Questions This Podcast Episode Answers:How does NOAH preservation work without public funding? LA Mas anchored with Self-Help Ventures Fund as a co-developer covering 75-80% of equity per deal, then filled the gap with foundation PRIs and individual community loans. Their first three acquisitions totaled about $5 million with no public money.What deal structure makes a NOAH acquisition pencil? LA Mas paid $1.2M for a 5-unit Cypress Park property averaging $1,000/month in rent. They added a 640 sq ft, 2BR/2BA ADU for about $300K that rents at $2,800/month market rate. The ADU cross-subsidy covers operating costs that legacy rents cannot. Total project budget: $1.6M.What is a program-related investment (PRI) and how does it help affordable housing nonprofits? A PRI is a below-market loan from a foundation made to advance its charitable mission. LA for Ali (the mayor's public-private housing partnership) provided LA Mas a $250K grant to close their first escrow. A family foundation provided their first PRI for properties two and three.How can individual investors support NOAH preservation? LA Mas raised $200K from individual investors at a $25K minimum. Terms: 1% interest-only payments for five years, then a balloon repayment. This community capital fills the gap between the equity partner and available grant funding.What public funding is available for NOAH in Los Angeles? The LA County Affordable Housing Solutions Agency (LACAHSA) issued its first NOAH notice of funding availability. LA Mas was one of ten selected from 120 applicants and received $7 million. Their three private acquisitions gave them the track record to compete.Don't forget to check out LA Mas's work. Follow them on Instagram at @masforla. Reach out to Helen directly at hln@[verify email domain before publishing].Please DM any questions or content suggestions to Kent Fai He, affordable housing developer, educator, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States.Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions.