Giving Local Developers the Tools to Build Up Their Communities

MAKING HOME POSSIBLE IN IOWA

A combination of aging housing stock and lack of new construction can lead to housing supply issues in underserved communities. Freddie Mac’s Develop the Developer^SM Academy is addressing these challenges by empowering aspiring developers to build up their own communities.

The Develop the Developer Academy (DTDA) is an innovative program that stimulates reinvestment and development in historically underserved areas by providing training and support to local developers. The academy is also designed to address the underrepresentation of women and people of color in real estate development.

In collaboration with established educational organizations — such as Spark CDI in Omaha, Nebraska — DTDA offers an intensive 36-hour curriculum that provides foundational knowledge, technical assistance, community connectivity, and information to access funding for emerging developers. Each cohort comprises a wide range of professionals throughout the housing industry, exposing participants to new perspectives and creating valuable networking opportunities that last beyond graduation.

This holistic approach enables developers to build wealth while expanding access to housing and revitalizing their own neighborhoods. For one graduate, it gave her the tools she needed to help her community when it was needed most.

With more than 20 years of federal and commercial contracting experience, Tamara Brunow never planned to become a homebuilder. That changed in 2019, when she stepped in to help the families of Hamburg, Iowa, after devastating floods claimed 30% of the town’s housing stock.

She began applying for federal disaster recovery grants and enrolled in the Develop the Developer Academy in nearby Omaha to learn more about residential development.

“It was life-changing for me, because the only developers I knew were these huge companies,” Brunow said. “I didn’t even know to call myself a developer. I thought when I would do these little rehab projects, it was just construction.”

In addition to gaining a new perspective on her work, Brunow also gained a business partner through the academy. Civil engineer Joe Zadina was a guest speaker during Brunow’s first session, and he shared her vision of creating more community-centric developments.

“He came in and said, ‘If I were a new developer, I would be looking at how to build housing that incorporates community,’” Brunow said. “This is the same sentiment I have expressed: we need to get people out of their houses and active in their community.”

Brunow hired Zadina, and they developed plans for a community of 33 single-family homes with a universal accessibility design for families earning at or below 80% of the area median income. The homes will also feature net-zero energy, mitigating the environmental impact and utility costs for residents. Outside the home, residents will have access to amenities that promote healthy and sustainable living, no matter their level of mobility.

“People can come right out of their front door,” Brunow said. “We have boulevard streets with sidewalks on both sides, we have two playgrounds and electric vehicle charging stations. You can get from one end of the subdivision to the other in a wheelchair with no problem.”

Brunow has always had a vision for this type of community, but DTDA gave her the resources and connections she needed to see it through.

“You work in teams with people who have all kinds of experience — you might have a real estate person, a construction person or a finance person,” Brunow said. “And that helps you gain a better understanding of what each of your counterparts need to complete a development project.”

DTDA is helping to revitalize communities that are often overlooked by larger developers. Since its 2020 launch, the academy has supported developers with 20 active development projects, yielding 197 new single-family units and three development projects, which will result in 485 new multifamily units.

The program currently has academies in Omaha; Tulsa, Oklahoma; Milwaukee, Wisconsin; and Baltimore, Maryland, with plans to expand to additional markets.

To learn more about our commitment to supporting affordable housing in underserved markets, visit our Develop the Developer webpage.