Tri Star Community Impact Fund

Tri Star Community Impact Fund makes investments in blighted workforce housing apartment communities which feed poorly ranked public schools to foster stabilized communities by offering affordable rents combined with thoughtful community programs focused on education, wellness and food security in southeastern United States.

Our business model focuses on older, blighted workforce apartment communities that house families living near the poverty line. Many of the workforce housing communities built before 1980 can be purchased, renovated, and then rented to families at affordable rents. Over time, our programs have a stabilizing influence on our residents and the community-at-large, most notably the local public elementary, middle and high school. A stabilized community reduces student transciency, a key factor in successful learning and education. Schools with lower transciency rates have a better learning environment, higher test scores and school success.

Financial description

The Fund will purchase, renovate and repair the Target Communities it acquires, and will operate and manage them in a manner that achieves sufficient profitability to fund their operating expenses and the Fund’s obligations under the Notes, while at the same time delivering on the Fund’s goal of improving and increasing the value of the surrounding community. The Fund expects its activities to greatly enhance the social development of the area surrounding the Target Communities, and to use the proceeds therefrom to, among other things, repay principal and interest on the Notes. Thus, in addition to the monetary return to investors in the Notes, the social impact of the fund’s investment in each Target Community will be measured annually to produce a measure of economic impact in the immediate community where the Target Community is located.
The fund will donate 2% of the loan principal per year, to fund the community programs provided by Star-C or other 501(c) organizations to support their services. It is anticipated that Star-C and other non-profits will also seek grants and community volunteer involvement to support their programs in the Target Communities.