Investors such as Nuveen, Pacific Life Insurance Company and Farmers Insurance have backed a US fund established to provide loans to borrowers seeking to preserve existing affordable multi-family properties.
Impact Community Capital, which is seeking $ 200 million (€ 169 million) for the new investment strategy, said it has so far raised $ 130 million and has already made the first four loans that will help preserve more of 480 affordable housing units.
The strategy aims to preserve nearly 5,000 affordable housing units and provide investors with access to stable income through risk-adjusted returns.
Jeff Brenner, President and CEO of Impact Community Capital, said, “We are proud to take this definitive step to protect valuable existing affordable housing.
“It will be impossible to come out of the crisis if we lose this critical supply of affordable housing to development at market rates.”
Violet Osterberg, CEO of Pacific Life, said: “Few investments have as much positive impact – and overall impact – on a community as access to affordable housing.
“Pacific Life is proud to do its part to preserve the critical supply of affordable housing that is under threat.
Pamela West, Managing Director of Real Estate Impact Investing at Nuveen, said: “Preserving quality affordable housing is about more than real estate.
“When properly handled, institutional capital can improve the quality of life and revitalize neighborhoods by helping residents access skills training, better education, affordable transportation and health care. “
Community Capital CIO Michael Lohmeier said, “In a tight real estate market like this, it’s hard enough for homeowners looking to maintain affordable housing to compete with market-rate buyers.
“Impact’s short-term lending strategy saves them time. “
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