A simple yet transformative formula:

acquire properties, rehabilitate them with local companies, and rent them out at affordable prices to those who need them most — while ensuring financial sustainability.

This is the proposal of Divine Lavender, an affordable housing project created by Tom Archer and Tamara Curtis Archer, a couple who combined their experience in real estate and social work to help address the housing crisis and integration challenges they encountered in Portugal.

In an interview with idealista/news, the founders explain their goals and future plans, built upon one premise: creating homes with purpose.

The model is based on two main criteria: rents do not exceed 33% of the household’s income and are set between 60% and 80% of the market value. It is aimed at migrants, refugees, students, and relocated professionals — such as teachers, doctors, or police officers — who face major difficulties accessing housing, even with stable incomes. Tenants are selected with the support of organizations such as JRS Portugal and CRESCER, and are monitored over time.

After a successful pilot phase in Greater Lisbon, with two apartments rented between 30% and 60% of market price, Divine Lavender is now completing the rehabilitation of a building in Barreiro, on the south bank of the Tagus, with ten rooms designed for a mixed community. The goal is to create not only affordable homes but also balanced co-living environments, where different profiles coexist with support and mutual respect — a concept that will be fostered with the support of the Lisbon Project.

With 100% private funding so far, the project plans to attract investors from 2026 onwards, maintaining a balance between social impact and financial return. The key to this, according to the founders and Tiago Matos Alves, the operations director in Portugal who joined the project, lies in tenant diversity, rigorous selection, controlled acquisition and rehabilitation costs — and a clear vision: proving that it is possible, and urgent, to invest in housing that cares.

Affordable homes

How did the idea of creating the Divine Lavender project come about, and what exactly is it? Why did you choose Portugal to implement it?

Divine Lavender was born from our desire to bring together what we had each gained from our professional experience — in tourism and real estate (Tom), and in social work (Tamara) — to respond to concrete social challenges that we began to witness closely after moving to Portugal in 2019.

The project was always meant to be practical, humane, and financially viable. We wanted to contribute to solving the housing crisis we saw around us, but also to the integration of migrants and refugees who, like many Portuguese people, often face enormous barriers to accessing decent housing.

Divine Lavender was born out of a desire to care — to create stable, affordable solutions that make a real difference in people’s lives.

“The project was always designed to be practical, humane, and financially viable.”

How does this affordable housing model work, and who is it aimed at?

We acquire properties and rehabilitate them for affordable rentals, based on two criteria: rents do not exceed 33% of the household’s net income and are set between 60% and 80% of the market rate.

The model is aimed at migrants and Portuguese nationals in vulnerable situations — or those who have recently overcome vulnerability — supported by organizations such as JRS and CRESCER. It also serves relocated professionals (such as teachers, police officers, and doctors) and university students.

In addition, we aim to promote genuine community integration, creating balanced co-living environments among people from different backgrounds and contexts, in close collaboration with the Lisbon Project, whose mission and experience are centered on building an inclusive and empowering community.

You carried out a pilot test by acquiring two apartments in Greater Lisbon, rented at affordable prices (30% and 60% of market value). Can you explain this better? And in terms of financing/investment?

We purchased two apartments — one in Barreiro and another in Fogueteiro — with 100% private funding. They were rented to migrants and refugees, both to a family and to individuals through co-living arrangements, referred by JRS.

This pilot phase was essential to test financial viability, the dynamics with social partners, and the level of tenant commitment — with no late payments, full stability, and respect for the rules.

This success validated the model and showed that we could move on to something larger.

What did the partnership with JRS Portugal consist of?

JRS is a key partner: it handles tenant selection based on clear criteria of emotional, social, and financial stability. These are people who, although vulnerable in terms of housing access, are prepared for independent and responsible living.

JRS also provides ongoing social support for their referred tenants throughout the lease period.

We are also in contact with other associations that can refer potential tenants and collaborate in various ways, but JRS will remain an essential partner and the main referrer of migrant/refugee tenants.

For the expansion phase, you decided to move forward in Barreiro and replicate on a larger scale. What are your expectations for this new stage?

In Barreiro — an area long identified as “up-and-coming” — we acquired a building with two apartments, totaling 10 rooms.

This new phase will consist of around 60 to 70% of tenants supported by JRS and CRESCER, and the remaining units will go to relocated professionals and a Community Coordinator from the Lisbon Project, who is expected to live in the building.

This combination allows for a more stable, inclusive, and enriching environment.

It’s also worth noting that the entire renovation of the building was carried out by local companies and workers from Barreiro, and whenever possible, materials and services were sourced locally.

This is part of our commitment not only to affordable housing but also to supporting sustainable local supply chains, economic development, and community value.

“It’s part of our commitment not only to affordable housing but also to contributing to sustainable local chains.”

When will the work be completed, and who will the homes be for? What are the tenant selection criteria?

The building is now almost complete, and the first lease contracts will start in the coming weeks.

The rooms will go to tenants selected by JRS and CRESCER, relocated professionals, and a resident Community Coordinator.

All tenants are chosen based on personal and financial stability, willingness to live in a community, and respect for shared space rules.

Diversity of profiles is a key pillar for fostering true integration.

The goal is to start attracting investors by the end of 2025 to expand the model. How do you plan to do that? What financial structure ensures both safe returns for investors and affordable rents?

Our top priority now is to ensure that this new building performs as expected, and that once again we are ready to take the next step sustainably and with a focus on social integration.

Only then, in 2026, will we open the project to investors.

The balance between different tenant types — with varied profiles and financial capacities — allows us to achieve sustainable profitability, even with below-market rents.

We believe this combination is the key to maintaining our social mission while also ensuring returns for investors seeking to align impact with security.

Another crucial factor for the model’s success is purchasing properties at reasonable prices, ideally below current market value.

This has become increasingly challenging, especially in urban areas. Finding good purchase opportunities and contractors at fair prices — allowing for quality rehabilitation and maintenance while keeping rents affordable — is fundamental for the project’s viability and scalability.

“Initiatives like ours show that it’s possible to generate impact without giving up financial sustainability.”

How do you view the role of the private sector in addressing Portugal’s housing crisis?

The private sector plays a crucial role, especially when working alongside social organizations and public entities.

Initiatives like ours show that it’s possible to create social impact without sacrificing financial sustainability.

However, state support would be a major reinforcement — allowing us to grow more solidly and reach more people.

And from the government’s side, what still needs to be done? Do you fear that political instability could worsen the situation, particularly in terms of attracting investors?

What’s missing is a clear legal and fiscal framework that brings confidence and stability to those who want to invest in affordable housing.

Many programs, such as the PAA, though well-intentioned, do not offer rents attractive enough to make investor involvement viable.

And yes, political and regulatory instability can seriously affect confidence in the sector — which makes a clear national housing plan even more urgent.

That said, we believe the current political instability makes it even more important for some housing crisis solutions to emerge from civil society, so that they can develop organically with resilience and be ready to align with new government initiatives as they are implemented.

Beyond Greater Lisbon, are there other regions where you’d like to replicate the project? What criteria will you use to select new properties for renovation?

Yes, we believe the model has potential to be replicated in other regions.

However, for now, we want to consolidate our operations in Greater Lisbon, as this is where the greatest housing need exists among our target population and where we have the operational capacity to act responsibly and closely.