Habitat Homes Affordable Housing Fund I 3

EquityMultiple is pleased to offer investors the opportunity to participate in a $2.5M equity investment in Habitat Homes Affordable Housing Fund I, LP, a value-add manufactured housing community fund targeting underperforming assets across high-growth U.S. markets. The Fund provides access to the manufactured housing sector—a $717/month average rent, 94.8% occupied market that has proven resilient through economic cycles while addressing the nation's 7.1M-unit affordable housing shortage.

Led by Habitat Homes, the Fund targets "mom-and-pop" operated communities ranging from 50 to 150 lots, typically acquired at 6-10% cap rates with significant operational upside. The Sponsor's strategy focuses on acquiring underperforming properties, implementing operational efficiencies, completing physical improvements, and marking rents to market—often 30-40% below comparable rates. With over 70 years of combined institutional experience, the team has successfully acquired, managed, and operated 42 manufactured housing communities totaling $85.7M in value since 2015.

EquityMultiple investors receive preferential Class A Units with an 8% preferred return—the highest available across all Fund investment classes—providing enhanced downside protection and priority distributions ahead of other equity investors. The Fund targets less than 65% LTV financing to reduce debt service and enhance cash flow, with projected stabilized cash-on-cash returns of 6-12% and a Net IRR of 14-20%. Investors can benefit from investing several years into the Fund’s life, after five acquisitions where the business plans are already in progress. The Sponsor estimates total Fund asset value to be 38% higher than acquisition cost, while EquityMultiple investors will come in at cost basis.

Manufactured housing communities offer compelling investment characteristics: residents typically stay 10-15 years (versus 3-5 years in traditional multifamily), own and maintain their homes (reducing CapEx burden), and provide inflation-resistant income through short-term leases. During COVID-19, the sector maintained 93.3% occupancy and 96% rent collection, demonstrating defensive qualities while serving a critical affordable housing need in markets where manufactured homes cost 5x less than single-family alternatives.

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With a national shortage of 7.1M affordable rental units and only 35 affordable homes available per 100 extremely low-income renters, manufactured housing communities provide essential housing infrastructure that cannot be easily replicated. This scarcity is compounded by zoning restrictions and development costs that make new MHC construction increasingly difficult.

The sector's fragmentation creates immediate consolidation opportunities. With 72% of assets owned by non-institutional operators, experienced sponsors like Habitat can acquire underperforming properties from retiring "mom-and-pop" owners who lack the capital or expertise to optimize operations. Recent market data shows the median sale price per pad increased 20% in 2024 to $49,150, while national occupancy improved to 94.8% and average rents grew 720 basis points year-over-year—indicating strong fundamental demand and pricing power.

Rising interest rates and construction costs have curtailed new multifamily development, increasing demand for affordable alternatives. Meanwhile, manufactured housing's inflation-resistant characteristics—driven by short-term leases and sticky tenant bases—position the asset class to benefit from continued rent growth. The Fund's target 65% LTV financing strategy takes advantage of current debt markets while maintaining conservative leverage, positioning for potential refinancing benefits as rates stabilize.

Preferential Class A Investment Structure with Strong Downside Protection

• EquityMultiple investors receive Class A Units with 8% preferred return, the highest available across all Fund investment classes, providing priority distributions and enhanced downside protection.
• Target less than 65% LTV financing reduces debt service burden while maximizing cash flow generation, with projected stabilized cash-on-cash returns of 6-12%.

Defensive Asset Class with Sticky Tenants and Low Maintenance

• Residents average 10-15 year stays (2-3x longer than traditional multifamily) and own/maintain their homes, significantly reducing turnover costs and ongoing CapEx requirements.
• Sector maintained 93.3% occupancy and 96% rent collection during COVID-19, demonstrating resilience during economic stress with current national metrics at 94.8% occupancy and $717/month average rents.

Experienced Team with Proven Consolidation Strategy

• Sponsor has 70+ years combined institutional experience, having acquired $85.7M across 42 manufactured housing communities since 2015, with current pipeline of 67 assets representing $190M across 2,760 pads.
• Targets fragmented market where 72% of assets are owned by non-institutional operators, creating opportunities to acquire underperforming properties at 6-10% cap rates and drive value through operational improvements and rent optimization.

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  Investor Packet
   

Please Note: The offering materials to be reviewed and considered by investors with respect to this offering include the information described on the EquityMultiple website relating to this offering (as amended and supplemented through and until the closing of the transaction), together with the Investor Packet relating to EMIP 15, LLC (the "Company"), which includes the “Risk Factors” discussed therein, the subscription agreement relating to the purchase and sale of membership interests in the Company, and the operating agreement for the Company. We refer to all of this information collectively as the "Property Information Package." To help ensure you select an investment suited to your investment objectives, liquidity needs, and risk tolerance, we require that all prospective investors read the Investment Information Package for any investment you are considering and carefully review the potential risks detailed therein prior to investing. All investments involve risk, including the potential for loss of capital (including invested principal).

Such risks include, among other things, the illiquid nature of the investment, risks relating to the management of the projects, risks relating to any renovation or construction work to be performed at the property, and real estate market risks generally. Investors must be able to bear such risks. Positive returns, dividends, and distributions are not guaranteed nor insured by EquityMultiple, the FDIC, or any other agency, Governmental or otherwise. Forward-looking statements, hypothetical information or calculations, analysis reports, financial estimates and forecasted returns are inherently uncertain and involve risk. Past performance is not necessarily indicative of future results. Investors should not base their investment decision solely upon such information. Investors should either possess the necessary financial knowledge and experience to properly evaluate a potential investment or consult with appropriate legal, tax, and investment advisors prior to investing. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of future events or results. Please note that EquityMultiple is not serving as your fiduciary or advisor with respect to this opportunity.

The information provided herein has been prepared by the Company based on information provided by the Sponsor (including, without limitation, all assumptions on which the financial statements related to the Target and the Company are based) and other sources that EquityMultiple believes to be reliable, but we make no representations or warranties as to the accuracy or completeness of such information and accept no liability therefore. Discussion of general market activity, industry and sector trends, or other broad-based economic, market or political conditions should not be construed as research or investment advice.

Below are certain key risks associated with this investment; a more comprehensive discussion of risks is contained in the Risk Factors section of the Investor Packet for the Company, which should be carefully reviewed prior to any investment in this opportunity:

Capital Call Risk: The ultimate amount of capital that may be required by the Target is unknown, and although the Target may not require that its members contribute additional capital to it, it may from time to time request additional funds. If the Company does not fully contribute in the event of such a capital call, the Company’s interest in the Target will suffer some amount of dilution. Moreover, if some investors in the Company contribute but others do not, those non-contributing investors may also suffer some amount of dilution as to their interest in the Company. EquityMultiple retains the option of utilizing other financing sources (including preferred securities in the Company, or other EquityMultiple-organized investment vehicles that may make investments in the Target) to offset any shortfalls incurred by the Target with respect to its additionally requested capital.

Credit Risk: The Company's equity investment in the Target will relate to a Property that will undergo some degree of renovation and/or construction, a situation that does not always meet the financing criteria for conventional financing from institutional sources. Credit risk is inherent in the real estate financing industry, and there can be no assurance that the creditworthiness of the Sponsor will be sufficient to assure the full repayment of the Company's common equity investment and thus the Company's ability to provide returns (or even repayment of principal) to investors.

Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “forecasted,” “estimated,” “prospective,” “believes,” “expects,” “plans,” “future,” “intends,” “should,” “can,” “could,” “might,” “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements. Similarly, the financial forecasts contained herein and in any other offering materials are based on numerous assumptions. Although these assumptions are believed to be reasonable, they are all subject to uncertainty.

Illiquidity; Non-Transferability of Securities: The membership interests in the Company are illiquid and no secondary market for them is expected to soon develop; there can thus be no assurance as to whether or when an investment in a membership interest may be liquidated. The transferability of membership interests in the Company are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. Moreover, the estimated investment holding period described herein is only an objective, and there can be no assurance when or if an investment may be liquidated. Potential investors should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Investment Risk Generally; Private Offering: An investment in membership interests is highly speculative and involves a high degree of risk; investors could lose all or a significant portion of their investment. You should only invest in the membership interests if you have the ability to lose all of your investment. Please see the Risk Factors section of the Investor Packet (see Documents, above) for further risks inherent in private offerings.

Limitations of Property Comparables: Recent property sale and lease transactions are frequently used in real estate to help estimate market value for similar transactions. These comparables come from a variety of sources, including project sponsors, publicly available reports and market data, and subscription-based third-party data and research firms. Due to the opacity of the real estate market, comparable transaction data has a number of inherent limitations, including but not limited to the following: i) only a small portion of transaction and leasing data is publicly reported and thus verifiable; ii) data and research companies must rely on a variety of non-public data sources, including self-reporting, which may significantly increase the likelihood of data error; iii) data sets are often incomplete such that the data provided only represents a select portion of the market, which may or may not be representative of the true market as a whole; iv) while selected comparable properties may bear high-level similarity to the subject transaction, specific property level details, including location and property age, condition, and quality, can reduce or eliminate the usefulness of any particular comparable property. Further, the comparable properties selected do not represent the complete set of available comparables and may not be a representative sample of available comparable property data. Lastly, the providers of comparable property data, including third-party data providers, such as REIS, Real Capital Analytics, CoStar and ESRI, do not make any representations or warranties regarding the accuracy of their data and investors should not rely in whole or in part on such data in making their investment decisions.

Management Risk: The Company will be investing in the Target, which will control (directly or indirectly) the Property. The Company (and thus investors) will be relying solely on the Sponsor (or its manager affiliate) for the execution of its business plan. While the Sponsor has operating experience, the Target will have been only recently formed and has no significant operating history or record of performance. The Company's investment in the Target is also subject to the risk that the Property fails to sell at a price sufficient to meet the Target's operating expenses. While the Sponsor believes that the target sales prices of the Property is reasonable relative to comparable properties in the market, there can be no assurance that such price will be realized or that, when the Target attempts to sell the Property, that investor sentiment will be favorable or that purchase financing to buyers will be readily available. The investment of the Company in the Target will be subject to, among other things, the Target’s operating agreement, which provides investors with little or no control over the management of the Target or the Property. A draft version of this operating agreement will be made available upon request.

Nature of Common Equity; No Lien on Underlying Property: The nature of common equity financing is that the common equity investor will not have any lien on the property itself. The common equity is thus in a position effectively subordinate to any primary loan on the property or other indebtedness of the Target. The manager of the Target cannot offer any assurances that there will be sufficient cash available to make distributions to its members (including the Company) from either net cash from operations or proceeds from the sale of the asset. That manager, in its discretion, may retain any portion of such funds for property operations or capital improvements. Investors in the Company are expected to receive a Schedule K-1 for tax reporting purposes.

Other EquityMultiple Investment Vehicles: It is possible that the Company’s common equity investment will be made alongside similar investments made by one or more other investment vehicles that may be controlled by EquityMultiple or its affiliates (referred to as “Other EM Vehicles”). EquityMultiple and its affiliates will earn additional servicing or asset management fees from any such Other EM Vehicles. EquityMultiple’s direct and indirect interests in Other EM Vehicles and its obligations to the investors in those funds may also impact the investment decisions made by those Other EM Vehicles or the decisions the Company's manager makes with respect to disposing of the Company's common equity investment.

Real Estate Market Risk: The Target’s economic performance and value, and thus the value of investors’ investment in the Company, is subject to various risks associated with its properties. Real estate markets are affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors. Investments related to real estate are also subject to market valuation risks that may be caused by changing economic and local market conditions such as local real estate market conditions. The Property’s economic performance and value, and thus the value of investors’ investment in the Company, is subject to such risks, all of which are beyond the control of both the Company and the Target.

Specific Project Risks: Henry County, Georgia conducts annual countywide property tax reassessments. Historically, the County has assessed properties at a Fair Market Value (“FMV”) averaging approximately 74% of prior sale prices. For tax year 2024, the assessed value of the Property increased from $23.5 million to $37.3 million, representing approximately 97% of the anticipated purchase price. An appeal of the 2024 assessment was filed by the prior owner in May 2024 and remains pending. Although the Sponsor has underwritten Year 1 property taxes based on the higher 2024 assessed value, it anticipates a potential reduction in future assessments based on historical data and market comparables, particularly given the broader Metro Atlanta trend of assessments averaging approximately 85% of recent sales prices.

There can be no assurance, however, that any appeal of the 2024 assessment will be successful or that future assessments will align with historical or regional averages. Should the appeal be denied, or if future assessments are made at or near the current elevated level, property tax expenses may materially exceed projections. Such an outcome could adversely affect cash flow available for distribution and reduce overall investment returns, including terminal value upon disposition.

This investment has a high degree of risk, and there can be no assurances that all or any of the assumptions described herein will be true or that an investment's actual performance will bear any relation to these hypothetical illustrations. The performance results provided herein may represent the hypothetical back-test of the criteria of the strategy, do not reflect actual trading by EquityMultiple, and do not represent the actual performance achieved by any EquityMultiple investor. The above is not intended to be a full review of all the risks of this investment. For a more comprehensive discussion, please review the "Risk Factors" section of the Company's Investor Packet included in the Documents section above.