There's a housing boom in the state of Idaho, and it may not be the kind you expect.

In the last year about 60 transitional homes for ex-cons and addicts have popped up in our neighborhoods, bringing the state wide total close to 100.

All of these homes are owned by faith based organizations trying to help ex-cons and addicts back get on their feet, and studies show that's more likely to happen in a transitional home setting.

But some of these organizations, specifically New Hope Community Health in the Boise area, are just as focused on making a buck.

We've seen them move in next door, and heard from angry neighbors.

"They're putting 12 men into a small neighborhood without any say by the neighbors," says Gaylon Hughes.

We've also heard what new hope community health leaders say their homes are all about.

"We believe from our heart that we can provide a better service at no tax payer expense for the men and women who are seriously looking for a new approach to treatment and recovery," says Larry Durkin with New Hope.

New hope currently operates 15 homes throughout Ada and Canyon County. But now they're in expansion mode, ready to open an additional two homes a month, and they've got a business plan to prove it.

"It is kind of an out of the box thinking," says Mac Mayer with Pinnacle Real Estate.

Mac Mayer represents the real estate side of New Hope's homes.

Here's how their investment plan works.

There are three parts:

1. Dimension real Estate;
2. Pinnacle Real Estate, the real estate management arm of New Hope;
3. and then there's New Hope, the organization.

Dimensions Real Estate is the matchmaker. When Dimensions finds a home, it line's up an investor.

Then Pinnacle Real Estate comes in and buys the home. Then that same agency sells the property back to the investor.

The investor then leases the house back to Pinnacle for five years, who then holds it for New Hope.

New Hope uses the leased property for their inmate program, charging the ex-inmates what they refer to as program fees.

"If we make this a successful model than other companies will do this also, they'll go look this works, it helps people, we create income and it's good for everybody," says Mayer.

But new hope doesn't stop making money there, take a look.

Each ex-inmate pays between 350-400 dollars to live in one of these homes.

Each home can house up to 12 residents, bringing in between 4200 to 4800 dollars.

New Hope says the money pays for the mortgage, insurance, utilities, maintenance, administration costs, supplies, and full time staffing.

When all expenses are paid new hope says it makes 150 to 300 dollars a month in profit per home.

They say the investor makes about the same.

Let's do some math. We'll use the lowest figures new hope gave us.

If you multiply 150 dollars profit by 12 months it totals 1800 dollars. That's how much new hope is clearing a month for each of its 15 homes.

That's a potential 27-thousand a year income for New Hope.

"Ultimately we will pay the tax payers of Idaho millions of dollars by helping theses people come out, get them jobs, get them working and take them off of government welfare programs," says Mayer.

New Hope says like it or not, they're helping Idaho solve its overcrowded prison problem, making a little money in the process.

"Let's serve these people, let's serve the public, let's serve our clients and if we're doing a good job it should create money and everybody should be more successful," says Mayer.

What they're doing isn't illegal. Hospitals and urgent care facilities make money. In fact, most helping agencies, if they're a business, make a profit of some kind.

But this business isn't licensed. In fact, it's private, and they don't have to answer to any watch dogs.

These homes are popping up in neighborhoods through out the Boise area and right now there's nothing neighbors can do to stop it.

The Fair Housing Act counters a city ordinance the prevents more than five unrelated residents from living under one roof, and even worse, these homes aren't licensed and since they rely on these ex-cons rent money for funding they don't have to answer to any watch dogs.

But what's going on here in Eastern Idaho?

Transition home operators are definitely not profiting, in fact their struggling to survive.
In Part II, I'll tell you what that means and why its cause for concern.