SAN FRANCISCO--(BUSINESS WIRE)--IMPACT Community Capital, a pioneer in impact investing that creates institutional-quality, purpose-driven investments, launched two new products in the first quarter to expand opportunities for investors to address the affordable housing crisis. The new products, which allow IMPACT to expand its reach and build upon its 22-year track record in the affordable housing market, contributed to a productive quarter.
One of the new products IMPACT introduced was a tax-exempt loan program, which IMPACT used in the financing of the Coliseum Place in Oakland. This new-construction multi-family development is being developed by Resources for Community Development, with permanent financing by IMPACT through its relationship with Bank of America.
All 58 of the development’s units are set to be deeply affordable, for tenants earning 50% of the area median income (AMI) or less. Twenty-five of the units will target tenants making less than 30% of AMI. The development has set aside 15 units for special needs tenants, three of which fall under the Housing Opportunity for Persons with AIDS (HOPWA) program. Additionally, the majority of the development will be supported by a project-based Section 8 subsidy.
IMPACT also launched a new bridge loan product designed to help preserve existing affordable housing units, allowing IMPACT to expand the investment opportunities for investors who are also seeking to make an impact.
The first investment in the new program financed the acquisition of Sunny Garden, an existing 95-unit senior housing complex in La Puente, Calif., originally constructed in 1992, that is nearing the end of its affordability requirement. Through the new Bridge Lending Program, in partnership with Rose Community Capital (RCC), part of the Jonathan Rose Companies, IMPACT was able to facilitate the purchase of the development by a local nonprofit developer with the goal of maintaining the development’s affordable nature well into the future. The development will be repositioned by a Federal Housing Agency (FHA) debt and equity execution structured by RCC, an FHA specialist with a 20-year track record navigating government programs and working with government offices to develop affordable housing.
In addition to these two new products—and despite the challenges posed by the economic crisis caused by the coronavirus pandemic—IMPACT announced three loan purchases for a total of $8.3 million and six new loan commitments for a total of $26.9 million. In all, IMPACT’s efforts will create more than 533 additional units of affordable rental housing. This comes on the heels of a strong year in which IMPACT’s efforts supported the creation of 2,925 multi-family rental units in 2019.
“At a difficult time for Americans, especially for the most vulnerable populations, IMPACT remains focused on its mission to create institutional-quality investments that support the development of affordable housing, which is now needed more than ever,” said Michael Lohmeier, IMPACT’s chief investment officer.
IMPACT believes access to affordable housing is the bedrock for building healthy neighborhoods and economically vibrant communities. Over the past two decades, IMPACT has helped originate approximately $2 billion in institutional-quality investments, $1 billion of which has helped finance the creation of more than 45,000 affordable housing units—without sacrificing investment quality.
Founded in 1998 by leading insurance companies to generate institutional quality, purpose-driven investments, IMPACT Community Capital was a pioneer in impact investing and was among the first to use securitization to deliver capital in scale for affordable housing. IMPACT looks to guide new investors seeking to unleash the power of capital to transform communities without compromising investment quality. For more information: impactcapital.net.