Securities Law Analysis for Nonprofit Increasing the Supply of Affordable Housing


Silicon Valley compensation and benefits partner Christine McCarthy and San Francisco general corporate associate Daniel Lopez are assisting the Housing Trust of Santa Clara, an organization that makes loans and grants to increase the supply of affordable housing, assist first-time homebuyers, prevent homelessness and stabilize neighborhoods with an interesting securities law analysis.  The Housing Trust receives capital for its programs in the form of straight charitable donations and in short term, no or low interest loans from corporations and lending institutions.  Recently, the nonprofit has had individuals inquire about whether they can make a loan to the Housing Trust – where all they want is either their money back in a set number of years, or a small interest payout each year (1-2%).  Christine and Daniel will advise the client on whether it must register with the SEC in connection with these transactions, or at least file the correct exemptions.