SAN FRANCISCO--(BUSINESS WIRE)--In the face of the nation's current economic challenges, IMPACT Community Capital remains resolute in its mission to create institutional-quality investments that develop and maintain affordable housing throughout the country. In the second quarter, IMPACT financed new loans and commitments totaling more than $108 million. Additionally, IMPACT announced the launch of a new product that gives investors access to short-term loans that preserve access to affordable housing across the nation.
IMPACT's activity in the three months ending June 30 included the completion of six loans amounting to $37.3 million and the closing of 17 loan commitments totaling $70.8 million, marking a record fiscal quarter in commitments. These developments will provide more than 1,600 new apartments that will be affordable to individuals and families, with nearly all units designated for tenants making no more than 60% of the area median income. This comes at a time when the economic crisis brought about by the pandemic has further exacerbated the country’s need for affordable housing.
“The second quarter was a challenging time for the entire country, but the economic hardships made it especially difficult for families struggling to afford safe and decent housing,” said Michael Lohmeier, IMPACT’s chief investment officer. “While we are proud of our accomplishments in the second quarter, the economic and social impacts of COVID-19 on low- and moderate-income families require us to do so much more.”
Many of the investments IMPACT makes seek to assist Americans who have been disproportionately affected by the COVID-19 crisis. In Savannah, Ga., IMPACT announced a new loan commitment for the Savannah Summit, a 138-unit affordable housing development that serves low-income seniors. The Savannah Summit exemplifies the type of investment IMPACT seeks to provide in its upcoming short-term strategy.* The Savannah Summit senior housing development was originally built in 1978 and was rehabilitated in 2004, but needed to be renovated and repositioned with a new long-term Section 8 contract to preserve its affordability. IMPACT’s bridge loan is helping to provide the time necessary to arrange for permanent financing.
IMPACT also announced a commitment for The Hifi Collective, a new-construction multifamily apartment complex in Los Angeles that will serve the homeless population. Sixty-three of the development’s 64 units will be covered by a 20-year Section 8 contract, and tenants will be found with the help of the Los Angeles County Department of Health Care Services, which will also support case management activities for tenants.
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 social impact investments for institutional investors, half of which helped to finance the creation of over 45,000 affordable housing units.
* Nothing herein shall constitute an offer to sell, or solicitation of an offer to purchase, any security.
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: impactcapital.net.