Phase 1: Asset Growth & Risk Management

  • Diversified Yield Portfolio

    • Staking, lending, liquidity-provision and interest accounts across multiple blockchains.

    • Caps on any single protocol (e.g. max 15 % of fund) to limit counterparty risk.

  • Investment Policy & Controls

    • Board-approved crypto investment policy defining acceptable assets, risk limits, and custody practices.

    • Quarterly internal audits of wallet balances and trade logs.

  • Performance & Compliance Reporting

    • Publish a simple “Crypto Dashboard” each quarter: total holdings, realized gains, yield rates.

    • Ensure all trading activity is documented in nonprofit’s financial statements.

Phase 2: Housing Fund Governance

  • Restricted “Housing Reserve”

    • Create a separate fund/account on your balance sheet: all realized gains flow here once they exceed your operating reserve threshold.

  • Allocation Rules

    • Define a trigger (e.g., every $50 K of gains or quarterly) for transferring into Housing Reserve.

    • Board or Finance Committee approval for each distribution to ensure it aligns with pipeline needs.

Phase 3: Deal Pipeline & Financing

  • Pipeline Development

    • Maintain a shortlist of 3–5 vetted properties or rehab opportunities in high-need areas.

    • Perform quick feasibility checks (pro forma, Section 8 rent comparables, rehab budgets).

  • Layered Funding

    • Combine Housing Reserve with public capital (Section 8 vouchers, 811 advances, No Place Like Home credits) and CDFI loans.

    • Use crypto‐derived funds for down payments, earnest money, or gap financing.

Phase 4: Acquisition & Stewardship

  • Closing & Rehab

    • Deploy Housing Reserve for purchase/initial rehab draws.

    • Track project spend versus budget in real time.

  • Ongoing Oversight

    • Monthly updates to Board on rehab progress, budget burn, and anticipated lease-up dates.

Phase 5: Impact Measurement & Reinvestment Loop

  • Key Metrics

    • Crypto gains realized → $ invested in housing

    • Number of units acquired or rehabbed

    • Tenant demographics (Section 8, disability, low-income)

  • Annual Impact Report

    • Tie crypto performance to housing outcomes—e.g., “$200K in staking rewards funded 4 units for Section 8 families.”

  • Continuous Cycle

    • Net rental income and future crypto gains both feed back into the Housing Reserve, fueling growth in Year 2 and beyond.

Reinvestment Strategy