Capital Structure & Bond Financing

Financing the Rebuild

Uplifters Foundation expects the program to be financed through approximately $200 million of tax-exempt bond financing. The financing structure is designed to support the Foundation's charitable mission, lower the cost of capital, and create a disciplined path to repayment through the delivery and transfer of completed Heritage Homes.

– The program is not structured as a traditional real estate development. There is no developer ownership stake, no promote structure, and any surplus is directed to charitable and community purposes.
– The model is designed to direct more capital toward land acquisition, construction, carrying costs, and the delivery of attainable homes for families displaced by the January 2025 wildfire.

Important Notice: This page is provided for general informational purposes only. It does not constitute an offer to sell or a solicitation to buy any securities. Any securities offering will be made only through formal offering documents and only in accordance with applicable law.

Prospective purchasers should rely solely on the applicable offering documents and should consult their own financial, tax, and legal advisors before making any investment decision.

Financing Overview

Nonprofit Bond-Financed Model

The program is expected to be financed through approximately $200 million of tax-exempt bonds. Bond proceeds are expected to be used for land acquisition, construction, carrying costs, reserves, and approved program expenses.

By removing developer equity, promote economics, and directing any surplus to charitable and community purposes, the structure is designed to keep the program aligned with its charitable purpose: rebuilding attainable, fire-resilient Heritage Homes and helping families return to Pacific Palisades.

Program Principles

No developer enrichment
No management fees
No investor participation or equity in the homes
All program surplus directed to charitable and community purposes

Total Program Size

Approximately $200 Million

The program is expected to be funded through approximately $200 million of tax-exempt bond financing, structured to support the Foundation's charitable purpose and comply with applicable IRS and California nonprofit and bond requirements.

Structure

501(c)(3) Bond Financing

The bonds are expected to be issued in connection with the Foundation's charitable mission and used to finance the acquisition, construction, and delivery of Heritage Homes within the designated program area.

Final terms, structure, sources of repayment, security, reserves, covenants, and risk factors will be described in the formal offering documents.

Deployment

Use of Proceeds

Bond proceeds are expected to be used for:

Land acquisition within the designated program area
Design, permitting, and pre-construction costs
Construction of Heritage Homes
Insurance, taxes, carrying costs, and reserves
Approved professional, administrative, trustee, and financing-related costs

A detailed use-of-proceeds table will be included in the formal offering documents when available.

Security & Repayment

Primary Security

Real Estate Assets

The bonds are expected to be secured by program real estate assets, including land and completed Heritage Homes, subject to the final bond documents.

Cash Flow Control

Trustee-Controlled

Program cash flows, including acquisition proceeds, construction draws, rental income, and home transfer proceeds, are expected to be controlled through a third-party trustee or disbursement agent.

This structure is intended to provide oversight, accountability, and discipline around the use of funds.

Repayment Source

Repayment Through Heritage Home Transfers

The primary repayment source is expected to be proceeds from the transfer of completed Heritage Homes.

The program is designed as a self-repaying nonprofit model. It is not dependent on long-term rental income, speculative appreciation, or profit extraction.

Repayment Waterfall

Repayment Priority

Subject to the final bond documents, available funds are expected to be applied in the following order:

–

Interest Payments

Current interest on outstanding bonds, paid from permitted sources such as reserves, operating cash flow, and home transfer proceeds.

–

Bond Principal Repayment

Repayment of bond principal from proceeds generated through the transfer of completed Heritage Homes.

–

Program Obligations

Payment of remaining approved program costs, fees, reserves, closing costs, and other obligations.

–

Charitable Residual

Any remaining surplus will be directed to community infrastructure, public facilities, neighborhood reinvestment, and other charitable purposes consistent with the Foundation's mission.

Risk Management

Risk Mitigation

The program is designed with multiple layers of risk management. These measures are intended to reduce execution risk, while recognizing that market conditions and other external factors outside the Foundation's control may still affect outcomes.

Construction Risk

Guaranteed Maximum Price (GMP) contracts to help manage per-home construction cost
Multiple general contractors to reduce reliance on a single operator
Independent Owner's Representative overseeing cost, schedule, quality, and performance
Phased deployment to validate acquisition costs, construction pricing, and transfer assumptions early

Market Risk

Program does not rely on market appreciation
Attainable pricing is intended to reduce absorption risk
Expected demand from displaced residents seeking to return
Deferred reserve structure to support early validation before full deployment

Forward-Looking Statements: Certain statements on this page are forward-looking in nature and involve assumptions, risks, and uncertainties. Actual results may differ materially from current expectations.

This information is provided for general informational purposes only and should not be relied upon as investment advice or as the basis for any investment decision. Any investment decision should be made solely on the basis of formal offering documents and after consultation with independent financial, tax, and legal advisors.

Bond Program Inquiries

Questions Regarding Bond Financing

For questions regarding the anticipated bond financing, capital structure, or formal offering process, please contact:

partnerships@upliftersfoundation.org

Formal offering materials, when available, will be provided only through appropriate channels and in accordance with applicable law.