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ADDRESSING AFFORDABLE HOUSING NEEDS IN EVERY COMMUNITY.
A couple of weeks back, IMPACT CEO Jeff Brenner shared his point-of-view on the crisis of a lack of affordable housing facing America’s communities. Today, I would like to share my perspective by highlighting two new developments, financed by IMPACT, that are good examples of our efforts to alleviate the shortage of affordable homes—a challenge impacting communities of every size across the nation.
According to ECONorthwest, 22 states plus D.C. did not build enough housing between 2000-2015. In fact, production fell short by 7.3 million units. The California Housing Partnership reports that workers in many San Francisco Bay Area communities need to make at least four times the minimum wage (nearly $50 per hour) to pay the median rent for an apartment.1 Less populous locales are facing a similar challenge. For example, a shortage of affordable homes in Boise, Idaho, is being driven by a falling median income and rising rental rates.2
One of the most recent affordable housing developments financed by IMPACT opened this past March in San Antonio, Texas. The Bristol provides 96 quality homes and serves residents making 60% or less of the average median income. In a city that expects an influx of more than one million new residents by 2040, The Bristol isn’t simply a positive development, it’s also an important example of how institutions can create positive change in communities.
On the East Coast, in Denton, Maryland, Village Circle has broken ground, also with financing from IMPACT. The development will provide 84 quality affordable homes to residents making 60% or less of the average median income and includes literacy programs among its social services— broadening access to education and opportunity while improving living conditions.
Both developments are great examples of IMPACT’s commitment to unleashing the power of impact investing to meet societal challenges like a lack of affordable housing across America. We strive to do so by providing institutional investors seeking entry to impact investments, with assets that have attractive long-term yields relative to the underlying credit risk for matching long-term liabilities.
With a proven platform that facilitates entries into and exits from purpose-driven investments in scale, we’re seeking to meet the needs of institutional investors for prudent investments—and helping to serve communities of all kinds through affordable housing. We will endeavor to share more insights into how IMPACT transforms communities by linking these communities to the extensive capital available from institutional investors in upcoming posts.
Thoughts? We’d love to hear from you at firstname.lastname@example.org.
2https://www.ktvb.com/article/news/investigations/7-investigates-boises-low-income-housing-crisis/61729372Return to blog