Building Communities That Work
North Star Group develops affordable and workforce housing that strengthens Public Housing Authorities while creating neighborhoods where families thrive. Our approach combines innovative construction, sustainable financing, and community-centered design.
Our Development Philosophy
Affordable housing development shouldn't require Public Housing Authorities to sacrifice ownership, control, or long-term value. Serenity Village demonstrates that mission-driven housing can be both a community asset and a financially sustainable platform.
The Core Problem We Solve
Public Housing Authorities face an impossible choice: partner with investor-driven models that extract value from communities, or struggle to build affordable housing without adequate capital or expertise. Traditional LIHTC structures transfer ownership and control to outside investors. Bond programs require complex financial engineering that most PHAs lack internal capacity to execute.
Our Solution: We structure developments that preserve PHA ownership and control while accessing capital through Mortgage Revenue Bonds and Housing Finance Authority bonds. PHAs retain all assets, decision-making authority, and long-term cash flow—creating sustainable revenue streams that support continued mission fulfillment.
What Makes This Different
Serenity Village isn't just a financing plan—it's a complete neighborhood development model that delivers measurable improvements to residents' daily lives while generating durable returns for Public Housing Authorities:
- Mixed-Income Integration: Workforce homeownership and affordable rentals in the same high-quality community, preventing isolation and creating economic diversity
- Advanced Building Technology: Structural Insulated Panel (SIP) construction reduces utility costs by up to 50% while improving comfort and durability
- Sustainable Infrastructure: Rain gardens manage stormwater while producing fresh food, saving 42% on lifecycle infrastructure costs
- Digital Equity: Community-owned broadband and AI infrastructure provide residents with tools typically reserved for wealthy communities
- Clean Financial Structure: No cross-subsidization; each component financed appropriately while PHAs maintain complete flexibility
Financial Sustainability
The model creates multiple revenue streams for PHAs: developer fees earned at key milestones, net operating income from affordable rentals, property management fees retained in-house, and potential surplus from workforce housing sales—all while maintaining assets designed for decades of public ownership.
Leadership & Development Team
Our team combines three decades of real estate development experience, patented building technologies, specialized expertise in public housing finance, and direct PHA operational experience. We bring the technical capability and industry knowledge required to deliver complex affordable housing projects while preserving PHA ownership and control.
Integrated Expertise: This team combines the essential elements for successful affordable housing delivery: development experience, direct PHA operational knowledge, financial structuring capability, professional cost estimating and bid optimization, advanced construction technology, manufacturing capacity, and on-ground execution. Paul Watkins' extensive work with over 100 PHAs provides critical insights into housing authority operations, Amr Khader's BIDR Technologies ensures cost accuracy and procurement efficiency, while our construction and development partners deliver the technical capabilities. Unlike traditional models that require PHAs to coordinate multiple unrelated contractors, our integrated approach ensures seamless project delivery with deep understanding of PHA priorities and constraints.
Technical Capabilities & Innovations
Our patent portfolio demonstrates the technical innovation capacity required for delivering high-performance affordable housing. These technologies represent years of engineering refinement focused on making buildings more efficient, durable, and cost-effective.
Advanced Building Systems
Structural Insulated Panel construction with embedded reinforcement creates superior energy performance while reducing construction time and cost. Factory precision ensures consistent quality across all units.
Energy Efficiency
Integrated approach to heating, cooling, and electrical systems reduces utility costs by up to 50% compared to conventional construction, providing immediate financial relief to residents.
Water Management
Rain garden systems and smart irrigation reduce municipal infrastructure costs by 42% over lifecycle while providing community amenities and fresh food production.
Infrastructure Innovation
Patent portfolio in fluid management, insulation technology, and industrial systems demonstrates capacity for solving complex technical challenges in cost-constrained environments.
U.S. Patent Portfolio
Michael Hoffman holds nine issued U.S. patents demonstrating the technical innovation capacity essential for developing resilient, cost-effective affordable housing infrastructure.
This patent portfolio demonstrates systematic innovation in building systems, energy efficiency, and infrastructure—the technical foundations required for delivering affordable housing that performs better while costing less to build and operate.
Our Development Approach
Partnership Structure
We structure every project to preserve Public Housing Authority ownership, control, and long-term financial benefit. Unlike investor-driven models that extract value, our approach strengthens PHAs while delivering mission-critical housing.
PHA Role: Owns land and assets, serves as bond issuer, oversees policy decisions, manages rental properties long-term, and retains 100% of net operating income and management fees.
North Star Role: Provides development services including financing structure, bond packaging, SIP coordination, grant writing, and technical documentation—without acting as general contractor or financial guarantor.
Revenue Sharing: Development fees shared between PHA and North Star based on project scope. Grant and technical services billed separately, reflecting specialized expertise that reduces overall professional costs.
Blended Compensation Model
Standard development fees tied to milestones (bond closing, infrastructure delivery, stabilization) plus specialized technical services that save PHAs money by reducing attorney and consultant hours:
- Grant Writing: High-fundable federal and state applications that leverage multiple funding sources
- Preliminary Legal Drafts: Bond term sheets and MRB framework documents that reduce bond counsel drafting time
- Integration Analysis: Translation of HUD benchmarks, SIP specs, and financing strategies into aligned packages
- Technical Documentation: Compliance plans, energy/resilience specifications, and community benefits reports
Risk Allocation
Clear, appropriate risk assignment protects PHAs while ensuring project delivery:
- Construction Risk: Assigned to general contractor through required performance and payment bonds
- Financial Risk: Carried by bondholders; repayment tied to workforce sales and rental NOI
- Regulatory Compliance: PHA ensures compliance as owner; North Star supports through proper structuring
- No General Fund Exposure: Projects structured to avoid requiring local government guarantees
Grant & Financing Expertise
North Star provides professional grant writing and strategic funding support that helps Public Housing Authorities maximize available federal and state resources. Our services combine narrative development with technical documentation, ensuring proposals meet benchmarks while demonstrating feasibility.
Integrated Funding Approach
We identify and pursue complementary funding sources that strengthen the bond-financed foundation without creating compliance conflicts:
Energy & Sustainability
Investment Tax Credit (ITC) with Direct Pay, 45L Energy-Efficient Home Credit, 179D Commercial Building Deduction, and state energy rebate programs that reduce costs while improving performance.
Housing Development
HUD CDBG, Section 108 loan guarantees, HOME program funds, and FHLBank AHP grants that provide gap financing and reduce debt service requirements.
Resilience & Infrastructure
HUD GRRP grants and loans, FEMA BRIC funding for green infrastructure, EPA Clean Water SRF, and EDA Public Works programs that support sustainable community systems.
Community Facilities
USDA Community Facilities programs, HUD Community Development grants, and foundation funding for shared amenities that enhance resident services and neighborhood value.
Strategic Grant Planning: We develop customized funding playbooks that prioritize opportunities based on your specific circumstances, align with compliance requirements, and maximize leverage without creating unmanageable administrative burden. Our "high-fundable" approach focuses on grants that move the financial needle while preserving PHA ownership and control.
Bond Packaging Expertise
We structure Mortgage Revenue Bond programs for workforce housing and coordinate Housing Finance Authority bond programs for affordable rentals—maintaining strict separation to ensure compliance while optimizing overall project economics. Our preliminary legal drafting reduces bond counsel costs and accelerates the financing timeline.
Why This Matters
Serenity Village demonstrates that affordable housing can strengthen Public Housing Authorities while delivering neighborhoods where families genuinely want to live. By combining innovative construction, sustainable financing, and community-centered design, we create assets that serve missions for decades.
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Let's discuss how Serenity Village can strengthen your housing authority while serving your community's needs.
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