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Return on Investment Model

Compass calculates two return on investment models. Each of these is described below.

Leveraged Return on Investment

This measure quantifies the total amount of funding, including affordable mortgage financing, down payment assistance, and small business financing, leveraged by IDA funds.

IDA match funds invested in homeownership: $80,826
Affordable mortgage financing leveraged: $3,904,004
Down payment assistance leveraged: $82,981

Other resources leveraged: $161,039
Total leveraged return on $65,714 investment: $4,148,023

Social Return on Investment (SROI)
The Corporation for Enterprise Development, a leading research and policy institute in the asset development field, estimates that for every $1 invested, IDAs generate $5 in the form of new businesses, new jobs, increased earnings, higher tax receipts, and reduced welfare expenditures. Using the CFED model as a benchmark, Compass is currently building its SROI model. One early input into this model is the value of public savings generated by participants’ transition from subsidized housing to homeownership. The monetary value of the participant’s former housing subsidy and the new revenue generated by property taxes are key variables in this calculation.

Average annual public savings generated by transition from subsidized housing to homeownership: $9,076.

Results as of September 2014.