SAN FRANCISCO, CA – August 17, 2021 — IMPACT Community Capital (“IMPACT”), is pleased to announce the successful close of the IMPACT Mortgage Opportunities Fund (the “Fund”). The Fund exceeded its initial capital target and raised $210 million from six large institutional investors, closing five months ahead of schedule. Through the Fund, IMPACT seeks to make positive social change in America’s underinvested communities by preserving existing affordable multifamily properties and providing investors market rate returns.
IMPACT has been a pioneer in impact investing for over 20 years by creating purpose driven, institutional quality investments in scale. Housing is one area IMPACT believes to be fundamental to addressing the long-standing issues of social and economic injustice. To that end, IMPACT has invested over $1B in affordable housing. Unfortunately, the nation’s housing crisis faces an immediate threat: affordability restrictions on hundreds of thousands of federally assisted homes are set to end over the next several years, placing these properties at risk of becoming market-rate rentals. In 2021 alone, affordability restrictions on more than 123,000 federally assisted units — including those developed through the Low-Income Housing Tax Credit (LIHTC) program, Section 8, and other government programs — are due to expire.
The Fund helps address this need by providing high-quality, short-term bridge loans to developers and owners of affordable housing who want to preserve their properties’ affordability status. The loans provide borrowers time to apply for permanent financing and government subsidy programs. Over the lifespan of the Fund, IMPACT expects to preserve over 5,000 affordable units across the United States.
“To address the critical need for quality, safe, and affordable housing across the country, we have to meet the short-term challenge of preserving the current at-risk housing supply,” said Jeff Brenner, IMPACT’s President and Chief Executive Officer. “The IMPACT Mortgage Opportunities Fund will do this by providing the additional capital and time developers need to complete the work that will preserve the affordability status of existing housing.”
The Fund’s successful close sheds spotlight on the impactful role that institutions have been taking as it relates to affordable housing. Pacific Life Insurance Company, Farmers Insurance®, Nuveen, New York Life, Nationwide and Bank of Labor are among the institutions invested in the Fund.
“As one of the founding members of IMPACT Community Capital, Nationwide is dedicated to supporting efforts that provide affordable housing because it is paramount to fostering socioeconomic opportunity, and we’re committed to finding investments that will ultimately enhance the quality of life for individuals and families,” Nationwide Chief Investment Officer Joel Coleman said. “We are proud to work with IMPACT on the IMPACT Mortgage Opportunities Fund, which will ensure that affordable housing continues to be an accessible reality to our most vulnerable community members for years to come.”
Founded in 1998 by leading insurance companies to generate institutional-quality, purpose-driven investments, IMPACT Community Capital is a leading investment manager in impact investing. One of the first managers to use mortgage-backed 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 delivers institutional investment solutions that unlock value for investors while advancing opportunity in underinvested communities through impact driven investments. For more information visit impactcapital.net or contact Director, Investor Relations and Capital Markets, Melissa Radic.