Reinvestment Fund Works with Local Housing Developer to Bring Affordable Housing to Atlanta Metro
Affordable housing in Atlanta, Georgia, is on the minds of both residents and city officials.
Real estate in established neighborhoods, such as Grant Park and Summerhill, have rapidly appreciated in recent years. Due to existing zoning codes and restrictions that limit the type and density of housing that can be built on a lot, it’s an obstacle for developers looking to resolve the limited supply of affordable housing options that drive up the cost of land and construction.
Enter Fortas Homes, a local housing development firm whose “mission is to provide as many high quality affordable housing units as possible.” Jim Cheeks, the owner of Fortas Homes, explains, “Affordable housing is hindered by decades of exclusionary housing policy, and we are constantly advocating for better zoning and learning how to find a road map to get through existing codes. We are forced to push the limits and think outside the box in order to build homes that can offer more density and better options for the customer.”
Due to the nature of the deals, Fortas Homes found an understanding financial partner in Reinvestment Fund. Community Development Financial Institutions (CDFIs) like Reinvestment Fund play a vital role in supporting residential development that is affordable and responsive to the needs of the local community. Homeownership, as opposed to transient renters, can help revive and build community connections. By scaling the inventory of available affordable housing, local developers, like Fortas Homes, can also boost the local economy.
“Our mission is to build sustainable, healthy communities, and access to quality, affordable housing is fundamental to that vision. By providing Fortas Homes with a line of credit, we’re supporting their ability to acquire and rehabilitate homes, grow their portfolio, and expand their impact in Atlanta’s neighborhoods,” says McKenna Gosa, Director, Lending and Investing, Southeast.
The rental homes will be affordable to households with incomes up to 80% of the area median income. The for-sale homes will be affordable to households with incomes between 80% and 100% of the area median income.
For Cheeks, Reinvestment Fund acts as an advisor and collaborator, playing the critical role as a reliable and flexible capital partner, especially when banks pull back on lending.
“We do things that are really pushing the edge of zoning. And trying to explain that to banks or even another CDFI, quite frankly takes a lot of educating, and persuasion. When I can come to Reinvestment Fund with something out of the box, you guys get it,” explains Cheeks.
We do things that are really pushing the edge of zoning. And trying to explain that to banks or even another CDFI, quite frankly takes a lot of educating, and persuasion. When I can come to Reinvestment Fund with something out of the box, you guys get it.
Jim Cheeks, Founder/Chief Executive Officer, Fortas Homes
Additionally, Fortas actively supports the creation and utilization of accessory dwelling units (ADUs) – legal units owned by primary homeowners. This innovative approach not only provides an opportunity for market-rate and subsidized purchasers to offset mortgage and operating costs but also effectively doubles the availability of affordable housing in the area.
The financial partnership between Fortas Homes and Reinvestment Fund in Atlanta has had a tremendous positive impact on the community. These projects have kept homes in gentrified neighborhoods affordable and helped residents at high risk of displacement remain by providing mixed-income or affordable housing. Being a local developer, Fortas Homes is also able to maintain strong ties and create partnerships with important Atlanta organizations. Fortas Homes’ ability to add ADUs and use small-scale rental infills demonstrates scalable solutions to affordability challenges in the Atlanta metro area.
Examples from Reinvestment Fund’s Collaboration:
$1M Line of Credit to Acquire and Construct Affordable Family Homes and Rental Housing, Including Accessory Dwelling Units (ADUs)
Location: Pittsburgh, Summerhill, Mechanicsville, Vine City/English Avenue Neighborhoods
Community Impact:
- Affordable Housing Access: The project will deliver rental housing affordable to households earning up to 80% AMI, and for-sale housing up to 100% AMI, targeting affordability in rapidly appreciating neighborhoods.
- Neighborhood Revitalization: Targeted neighborhoods are vulnerable to displacement and gentrification. This initiative provides stable housing opportunities and contributes to equitable development.
- Support for Small-Scale Development: Supports Fortas Homes, a locally owned small real estate development business with deep community ties, to scale its portfolio. The credit helps support the firm’s growth as a community-based affordable housing provider.
- Strategic Partnerships: Fortas Homes collaborates with local nonprofits like Atlanta Habitat for Humanity and Atlanta Neighborhood Development Partnership (ANDP), to reinforce community-rooted development.
- Design Innovation: Fortas Homes is adept at building homes that are incorporated seamlessly into the existing neighborhood and adapts to small-lot infill housing with efficient 2-bedroom layouts, adding density while respecting neighborhood context.
$515,000 for Construction of 3 Rental Units and 1 ADU in Grant Park, Atlanta
Location: Grant Park, Atlanta
Community Impact:
- Mixed-Income Housing: Provides market-rate and deeply affordable units—one ADU rented at a rate affordable to households earning up to 60% AMI.
- Demonstration Project: One of the first ADUs allowed under Atlanta’s updated zoning. This project showcases how missing middle housing can expand affordable options without altering neighborhood character.
- Transit-Oriented and Infill Development: Located near the Atlanta Beltline and public transit, the project promotes sustainable, walkable living in an area with rising rent costs.
- Economic Stability for Local Workers: The development targets zoo employees and local residents, supporting workforce housing and reducing commuting burdens.
- Neighborhood Anchoring: The project fills a long-vacant parcel, enhancing the streetscape and helping to stabilize an area experiencing rapid real estate shifts.