The A25 Model

Philanthropic capital fills the gap.
A bond facility finances the build.
A covenant locks in affordability.

Our model

The current housing system works for the people already inside it. A25 is built for those it has locked out.

A purpose-built capital structure makes each home affordable to a specific household. A covenant registered on title keeps it that way permanently.

The model delivers through three housing options: leasehold, freehold and build-to-rent, each designed to hold across political cycles, market movements and the full physical life of the home.

Housing options

Three ways to a permanently affordable home

The right option depends on the land, the local market and the household. All three share the same core: an individual assessment, an affordable price, and a covenant on title that keeps the home affordable for every household that follows.

Leasehold

When you buy a traditional home you pay for the building and the land. The land is often the largest part of the cost. Under the leasehold option you buy the home but not the land, which stays in community hands under a 99-year lease. That removes the biggest cost from the price entirely. You own the home, can live in it and pass it on, at a price set by what it cost to build.

Freehold

You own the home and the land outright. When you sell, the price is tied to CPI rather than the market, so your equity grows steadily without the speculation that made housing unaffordable in the first place.
The next family buys at an affordable price too. The covenant on title ensures that, and it cannot be removed.

Build to Rent

A rental home where the rent is set when you move in and rises by a predictable fixed amount every few years.
The lease has no end date. You are not one renewal notice away from displacement.
For households who aren't in a position to buy, this option delivers the same permanence and security as ownership.

Governance

A25 homes are vessels of stability, not vehicles for wealth creation. The covenant is how we hold that line.

Every A25 home is protected by a covenant registered on title from day one. Its term is set to match the intended life of the home. The land beneath it is held in stewardship. That is what it means to treat housing as infrastructure, like schools and roads and hospitals.
The covenant governs who gets in, how they are selected, and what the home costs for every household that follows.

Assessed on genuine need
‍To qualify, a household must be unable to rent or buy in their local area without spending more than 30% of gross household income, have no member who has owned property in the past 24 months, and earn at or below 150% of the area median income.
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Fair by design
‍When more households qualify than there are homes available, allocation is by lottery. No household gets priority because they can pay more or know someone. Everyone who qualifies gets the same chance.

The covenant controls the price
‍Leasehold homes are priced on depreciation, not market value. Freehold homes appreciate at a capped rate tied to CPI. Rental homes have predictable, capped rent increases built into the lease. In every case the covenant prevents the home from returning to market pricing.

Finance infrastructure

The A25 capital structure is what makes the price possible

Permanently affordable housing has a finance problem commercial capital won't solve. Affordability caps mean the project can't generate the returns commercial investors require. That makes commercial capital hard to secure. A25 is built around that reality.

Every A25 project is financed in layers. Each layer carries a different level of risk and a different return. Philanthropic capital takes the highest risk at the lowest return. That is what makes the rest of the structure work.

Philanthropic capital fills the gap
A25 Homes deploys philanthropic capital into the first-loss position of each project, the gap that makes or breaks affordability. By taking the first-loss position, it reduces the risk to senior lenders, which allows the A25 Bond Facility to provide senior finance at below-market rates. Together they bring the total cost of capital low enough that each home can be priced within reach of an eligible household.

The capital keeps working
Philanthropic capital funds the affordability gap for one household and is recovered over the life of the project. When recovered, it may be redeployed directly into the next one. Because it is recovered and recycled, each dollar of philanthropic capital unlocks multiples of its original value in housing delivered.

The A25 Bond Facility
Each project is funded through the A25 Bond Facility, which raises capital from a broad pool of impact investors. The philanthropic capital beneath it in the stack absorbs the first risk, which gives bond investors the security to accept a lower return than conventional construction debt requires. That lower cost of capital is what makes the price of each home affordable. Projects can also be structured over longer timeframes than conventional bank lending supports.