This story was originally published in Affordable Housing Finance.
A new collaboration of San Francisco Bay Area foundations and businesses is raising $540 million to tackle the region’s affordable housing crisis.
The Partnership for the Bay’s Future is behind two breakthrough funds—the Investment Fund and Policy Fund—to expand and protect the homes of up to 175,000 households over the next five years and preserve and produce more than 8,000 homes over the next five to 10 years in Alameda, Contra Costa, San Francisco, San Mateo, and Santa Clara counties.
The Investment Fund aims to help address the funding gap that limits the ability to preserve and produce affordable housing. The Local Initiatives Support Corp. (LISC)—the largest nonprofit community development financial institution in the country—will manage the fund. It is partnering with national affordable housing experts Capital Impact Partners and the Corporation for Supportive Housing to originate investments. Morgan Stanley is also providing capital.
“This exciting partnership will help the Bay Area protect, preserve, and produce quality, affordable places to live for our teachers, nurses, first responders, and other hard-working individuals and their families,” said Maurice A. Jones, CEO of LISC, in a statement. “We want to ensure that the region remains a socially and economically diverse place where growth and prosperity are broadly created and shared and people of all walks of life can work, raise a family, and thrive.”
The partnership, which includes the Chan Zuckerberg Initiative, Facebook, and the Ford Foundation, has secured initial funding of more than $260 million for an intended $500 million fund.
The fund’s first transaction is a revolving line of credit to the East Bay Asian Local Development Corp. (EBALDC), a local community development organization that works with diverse communities in the East Bay to build healthy, vibrant, and safe neighborhoods. EBALDC anticipates the line of credit will support up to six projects over the next five years.
The partnership is the latest example of businesses stepping up to support affordable housing. Microsoft recently pledged $500 million to address affordable housing needs in the Puget Sound region. Kaiser Permanente has also committed up to $200 million to address housing stability and homelessness.
The partnership is the latest example of businesses stepping up to support affordable housing. Microsoft recently pledged $500 million to address affordable housing needs in the Puget Sound region. Kaiser Permanente has also committed up to $200 million to address housing stability and homelessness.
The Policy Fund will support initiatives to preserve and expand housing, with a strong focus on strengthening low-income tenant protections. It is led by the San Francisco Foundation and will be administered through two grant programs: Challenge Grants, which are larger awards to pursue ambitious, comprehensive protection and preservation solutions; and Breakthrough Grants, to provide technical assistance to jurisdictions that have the potential to develop affordable housing at scale. At the time of launch, the Policy Fund has secured almost $20 million of an intended $40 million.
The partnership is also backed by the San Francisco Foundation, Genentech, Kaiser Permanente, the William and Flora Hewlett Foundation, the David and Lucile Packard Foundation, and the Silicon Valley Community Foundation.
This story was originally published in Affordable Housing Finance.
