ADDITIONAL RESOURCES
COOPERATIVE HOUSING INVESTMENTS. SDIRA owners can invest in or provide loans to housing cooperatives that offer affordable housing options. These cooperatives are typically member-owned and operated, focusing on long-term affordability. DONATING OR LEASING LAND. SDIRA owners who hold land in their accounts can lease or donate it to a CLT or nonprofit organization, ensuring the land is used for affordable housing development. CHARITABLE REMAINDER TRUSTS FOR AFFORDABLE HOUSING. SDIRA owners can establish Charitable Remainder Trusts (CRT) where the remainder interest goes to a nonprofit organization focused on affordable housing. The SDIRA can fund the CRT, and the owner receives an income stream during their lifetime, with the remainder going to the charity. DONOR ADVISED FUNDS DAFS . While not directly using SDIRA funds, SDIRA owners can recommend grants from DAFs to nonprofits focusing on affordable housing, indirectly supporting these initiatives through charitable contributions. CROWDFUNDING PLATFORMS. Some crowdfunding platforms allow SDIRA investments in real estate projects, including affordable housing initiatives managed by nonprofits.
with disqualified persons (like family members), are strictly prohibited. Additionally, real estate investments carry inherent risks, including market fluctuations, liquidity challenges, and other potential pitfalls. Investors must remember to conduct thorough due diligence to mitigate these risks and ensure their investments align with their long-term goals.
Exploring a ordable housing advocacy through investments is a promising avenue. Resources are available to help individuals find opportunities, and working with experienced professionals can provide valuable guidance.
Disqualified Persons
Prohibited Transactions
“INSTRUMENTAL” INVESTMENTS Indeed, current challenges in
Alliance for Housing Justice
Habitat for Humanity
affordable housing availability are significant. Limited funding, zoning restrictions, and a lack of incentives for developers to build low-cost units are just a few of the hurdles that must be overcome. The scarcity of affordable housing options has exacerbated inequality and left many vulnerable populations at risk of homelessness. Ultimately, Self-Directed IRAs can be a powerful tool in the fight against the affordable housing crisis. By aligning investments with social impact goals, investors can be instrumental in facilitating the development of affordable housing. Choosing the right Self-Directed IRA custodian is a critical first step. Investors should look for custodians with experience in real estate investments within retirement accounts and a strong understanding of the unique considerations involved. A knowledgeable custodian can help navigate the complexities of Self-Directed IRAs, ensuring that investments are both compliant and impactful. By taking these steps, investors can leverage their SDIRAs to support affordable housing initiatives, contributing to a solution that benefits both communities and their own financial well-being.
National Low Income Housing Coalition
TARA BOGARD
PROHIBITED TRANSACTIONS AND DISQUALIFIED PERSONS
Tara Bogard is the senior vice president of business development for Digital Trust and has more than 10 years’ experience in the self-directed retirement plan and alternative asset space. She has played an integral role in creating exponential growth in the firm’s assets under custody. Bogard holds a master’s degree in business with a focus on organizational communication from Murray State University and a bachelor’s degree in organizational communication, also from Murray State University.
Although SDIRAs offer many benefits, they also come with legal and regulatory considerations. Understanding prohibited transactions and rules specific to real estate is paramount for maintaining compliance and avoiding hefty legal penalties. For instance, certain transactions, such as purchasing property for personal use or engaging in deals
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