How to Start a Nonprofit for Affordable Housing and Secure Millions in Grants

Introduction: Why Nonprofits Unlock a New Level of Impact

Affordable housing is one of the most pressing issues facing our communities today. Rising rents, stagnant wages, and limited inventory mean millions of families, seniors, and workers are at risk of homelessness. In this episode of the Affordable Housing & Real Estate Investing Podcast, I sat down with Anber Little, CEO and founder of Sustainable, who has helped countless individuals and organizations build nonprofits that not only create housing but also unlock millions of dollars in grant funding to support long-term stability.

Anber’s story is powerful: she’s lived through housing insecurity, worked on the frontlines of advocacy, and built a proven framework for turning passion into sustainable, mission-driven organizations. This conversation matters because it gives you the practical steps, the legal roadmap, and the funding strategies you need to launch your own nonprofit and access resources you may have never thought possible.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

What Are the First Steps to Starting a Nonprofit for Affordable Housing?

The first step isn’t paperwork—it’s clarity of purpose. Anber emphasizes that you must start with your “why.” Why are you committed to affordable housing? Why do you want to help underserved populations? That clarity will drive every part of your organization.

From there, she lays out three early foundations:

• Mission and Vision: Write a concise mission statement that connects directly to housing equity and stability.
  
  

• Target Population: Decide who you are serving—low-income families, veterans, seniors, or individuals transitioning out of homelessness.
  
  

• Data and Need Assessment: Support your mission with evidence. Demonstrating need strengthens grant applications and credibility.
  
  

What Legal Framework Do You Need to Create a Nonprofit?

Starting a nonprofit isn’t just about filing a single form. Anber explains that you need a solid legal structure:

• Choose Your Tax-Exempt Status: Most housing nonprofits apply for 501(c)(3) status, but other exemptions exist depending on your goals.
  
  

• Incorporation: File with your state. Anber has experience across California, Hawaii, and Utah, and emphasizes that requirements vary.
  
  

• Governance Essentials: You’ll need a board of directors, bylaws, and conflict-of-interest policies. These are required for grant compliance.
  
  

• Patience with Paperwork: Obtaining tax-exempt status can take months. Don’t assume it’s instantaneous—plan your timeline accordingly.
  
  

How Do You Design Affordable Housing Program Models?

Not every nonprofit has to build housing directly. Some can focus on services or partnerships. Anber shares three primary models:

1. Development Models: From new construction to rehabilitation to supportive housing.
   
   

2. Service-Driven Models: Programs that prevent homelessness, stabilize residents, or provide supportive services.
   
   

3. Partnership Models: Nonprofits can partner with developers, local governments, or coalitions to maximize impact.
   
   

Her key reminder: no nonprofit can do it alone. Partnerships expand resources, credibility, and funding access.

How Do You Fund a Nonprofit for Affordable Housing?

Funding is where many passionate leaders get stuck. Anber lays out practical strategies:

• Startup Budget: Map out your first year, including staff, compliance, and program costs.
  
  

• Grants: Federal, state, private foundations, and even banks now issue grants instead of loans.
  
  

• In-Kind Support: Think beyond cash. Donations, volunteer hours, and donated space all count.
  
  

• Revenue Streams: Use your tax-exempt status to diversify—fundraising, social media campaigns, and partnerships can sustain your mission.
  
  

Key Insights From Anber Little

• Starting a nonprofit opens doors to millions in grants that for-profit entities cannot access.
  
  

• Your mission and “why” are the foundation for funding and credibility.
  
  

• Compliance isn’t optional—ongoing governance and reporting protect your nonprofit.
  
  

• Service-driven models can be just as impactful as building housing.
  
  

• Long-term sustainability requires diversifying revenue and building partnerships.
  
  

Best Quotes From the Episode

• “When you’re becoming a nonprofit, your heart and your mission stay the same. What changes is how you receive funding—and the magnitude of funding available will surprise you.”
  
  

• “We’re not in the business of just data collection. We want to make sure people stay housed, not repeat the cycle of homelessness.”
  
  

• “You need a margin to have a mission. Volunteers are great, but sometimes you need dedicated staff who can put food on the table.”
  
  

• “Every nonprofit should align its mission with its housing equity goals. That’s the heartbeat of the organization.”
  
  

Common Questions This Episode Answers

How long does it take to get 501(c)(3) status?
It can take several months depending on the state and the IRS backlog. Plan ahead and don’t expect immediate approval.

Do I need to build housing to start a nonprofit?
No. You can provide supportive services, advocacy, or partnerships with developers. Many nonprofits succeed without owning property.

Can banks really provide grants instead of loans?
Yes. More banks and financial institutions now give out community grants that support affordable housing initiatives.

What’s the biggest mistake new nonprofits make?
Ignoring compliance. Without proper governance and reporting, nonprofits can lose funding or even their tax-exempt status.

Why This Episode Matters

Affordable housing advocates often feel like funding is out of reach. This episode with Anber Little proves that starting a nonprofit isn’t just about good intentions—it’s about building a structure that unlocks millions in untapped resources. If you’re serious about solving housing insecurity, this is your roadmap.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.