Executive summary

The SAB Center is conducting a demonstration program on affordable housing, what involves the acquisition of land and the construction of new properties. This guide explains our programs, our financial projections, our partners, and benefits for our investors in participating our projects. The location of the lands and the properties is not disclosed here. We only provide information after our investors have signed a non disclosure agreement.

The following executive summary separates our non-profit activities from the for-profit activities of the Domaine des Crafts. By clicking the pictures on the organization chart, we explain each department and how they benefit our programs.

You can activate the audio reader situated below the date at the top of each page and get automated translations in English, French, Italian, Spanish, German and Chinese.

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SAB Center

The SAB Center is a very young non-profit corporation created in March 2020, after 10 years of research and patents from Dr. Sandrine GERMAIN, the principal founder. The SAB Center has for mission to conduct a demonstration program on affordable housing with the construction of 115 units to home 5 different profiles of residents.

In 1918, the Department of Labor, Bureau of Industrial Housing and Transportation, released the “Standards Recommended for Permanent Industrial Housing Development”. In 1919 and 1920, the Department of Labor, Bureau of Industrial Housing and Transportation, released an other report on “War Emergency Construction (Housing War Workers), Report of the United States Housing Corporation”, volumes I and II. The demonstration program will adapt those standards to meet the modern environment on affordable housing and cross-check information with HUD standards.

The penury of affordable housing in California has increased the cost of housing with over half properties being the home of cost burdened tenants and over one third being the home of cost burdened owners in a context where student debt is keeping families in constant struggle. The housing crisis has impacted the mental and financial health of the people, and homelessness has become endemic all over the state of California.

Covid-19 has created an interesting context with 16,000 hotel rooms made available by the State of California what forecasts as much permanent housing units to be financed and built under the State of California programs.

The SAB Center will provide home to 23 homeless women, 23 homeless veterans, 23 low income artists, 23 low income researchers (doctorate, startup entrepreneurs, young engineers) and 23 AirB&B guests. The SAB Center is convinced that our occupancy rate will remain well above 97%, while simultaneously generating 46% of secured rents through homelessness vouchers programs.

To attract tenants and gain reputation with high quality services, the SAB Center has developed a master plan that follows the standards of John C. Commons in providing quality housing, but also the food and the occupation that develop and sustain the industrial vigor of the community. With a 7 years research and development program, the SAB Center is acquiring expertise to standardize the business model and continue develop quality living group quarters.

Domaine des crafts

The Domaine des Crafts is the trademark and the LLC company who will own all the properties operated by itself and by the SAB Center. On the Domaine des Crafts property, the LLC will operate a vineyard, a winery, a luxury AirB&B resort with pool, tasting room and restaurant. The Domain des Crafts will also own the land where 115 units affordable housing will be built and operated by the SAB Center.

The Domaine des Crafts has already identified 4 lands located 1 hour from Sacramento. Three lands will be reunited under one single entity to manage all activities of the company. One land consists of the vineyard with the winery. Two other lands consists of the resort itself. The 4th land is a vacant land where 115 units housing will be built with USDA and HUD loans. The annual rental income will be $6,459,640 plus an estimated $295,596 in homelessness vouchers for 23 people.

The acquisition of the 4 properties requires $6,094,000‬ that we plan to finance with a Joint Venture Capital LLC what includes all pre-development costs and the construction of 12 fantasy tiny homes to extend the rental revenue. The initial investment will be reimbursed in 2021 with 6% interest totaling $6,459,640. The initial JVC investment will be converted into a long term loan with USDA and HUD loans. Depending on the exit negotiated with the JVC, we could agree on different terms to increase the JVC revenue.

Profits are projected to be substantial over the next three years. The capitalization rate on 1 year lease up is 10.76%. The capitalization rate after stabilization on year 3 is 12.51%. If we would sell all the properties after 7 years activity, the capitalization rate is 7.84%.

The Domaine des Crafts will be implanted one hour drive from Sacramento within a territory of winegrowers. The vineyard is planted with Syrah, Charbono and Dolcetto. It is rented to a winegrower with 10 years agricultural lease. 2020 is year 1 and is a grafting year where costs of grafting are being shared by us (no vineyard income on year one). During the 10 years lease, the Domaine des Crafts will develop experience in winemaking in partnership with UC Davis and launch a small production of Vin Cuit, solera, in perpetuum wines, gastronomic vinegar, brandies, marmalade, gourmet food, inks, health products, strawflowers and fashion items. The Domaine des Crafts will develop a collection of non-alcoholic wines for a specific public such patients under medication. The Domaine des Crafts will also manage a breeding farm of Alpagas, Angora rabbits, ducks and chickens among other rescued farm animals.

By sharing tools and marketing events, the Domaine des Crafts will contribute in providing revenue to the SAB Center. The Domaine des Crafts will train the tenants of the SAB Center who volunteer to work on the manufacturing of products, the animal farm, the food gardens, the group quarter residence (115 units) and the two resorts. Our specificity will come from all the nursing services that we will provide in partnership with the SAB Center to rehabilitate workers and with all the creative team that we put together through the research and development programs managed by the SAB Center.

The Domaine des Crafts will pilote all the dynamics to create revenue both for the Domaine des Crafts and for the SAB Center, what will provide full time employment to 30 skilled people. The projected income is $2,275,252/year to pay $1,671,885 in personnel, services, utilities and loans.

$1,999,000 – DOMAINE DES CRAFTS’ RESORT

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$2,200,000 – DOMAINE DES CRAFTS’ RESORT

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$995,000 – DOMAINE DES CRAFTS’ VINEYARD

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$900,000 – VACANT LAND FOR THE CONSTRUCTION OF 115 UNITS WITH ROOF GARDENS

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We have many options on vacant lands. Our initial choice was 40 acres close to the river for only $285,000, but the property has been sold. The land above is a second choice, but it is only 5mn from the city of ******* (name disclosed to contacts only), stores and hospital. There is a casino 6 miles away with many jobs opportunities for our tenants. It is same county as the Domaine des Crafts vineyard and resort at short driving distance for our 30 employees. It is close to the river with many opportunities for canoeing activities. It is 158 acres, one of the largest parcels in this area with possibility for residential development. 40 acres must stay agricultural what anyway is our program. We will build 115 units housing. 23 will be rented as Air B&B and since this parcel is about 100 acres larger than our first choice, we could extend our activity with a RV Park. This property is located within a famous vineyard area with all the dynamics from the community what would offer a second point of sale for our wines.

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