IMPACT Community Capital Receives $50 Million Investment from New York Life to Support Affordable Housing Preservation
IMPACT Community Capital, which has been creating institutional-quality investments that drive positive change in underinvested communities for more than 20 years, has received a $50 million investment from New York Life to support the pressing need to preserve affordable housing rental properties throughout the country.
New York Life’s investment with IMPACT will provide short-term bridge loans to borrowers and owners of affordable housing seeking to preserve the properties’ affordability status. The underlying properties will be nearing the expiration of affordable rent restrictions, which place the properties at risk of becoming market-rate rentals.
Over the next several years, affordability restrictions on hundreds of thousands of federally assisted homes are set to expire, potentially reducing the affordable housing supply and exacerbating today’s critical affordable housing shortage. “It will be impossible to get out in front of the crisis if we lose this critical supply of affordable homes to market rate development,” said Jeff Brenner, President and Chief Executive Officer of IMPACT Community Capital.
“We are pleased to partner with New York Life as we continue to seek opportunities for our investors that achieve their investment objectives and make enduring, positive impacts on the challenges faced by American’s communities and families,” Brenner added.
In 2020, IMPACT launched a new investment strategy to provide short-term loans to borrowers seeking to preserve existing affordable multifamily properties. The strategy seeks to preserve approximately 5,000 affordable housing units and to provide investors access to stable income through risk-adjusted returns.
Founded in 1998 by leading insurance companies to generate institutional-quality, purpose-driven investments, IMPACT Community Capital is a pioneer in impact investing and was among the first to use securitization to deliver capital in scale for affordable housing. The firm has now originated $2 billion investments to provide affordable housing, healthcare, childcare and economic opportunities. IMPACT looks to guide new investors seeking to unleash the power of capital to transform communities without compromising investment quality. For more information visit impactcapital.net or contact Director, Investor Relations and Capital Markets, Melissa Radic.