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Impact Investing Platforms Create New Equity Streams for Affordable Housing

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By 2025, affordability restrictions are expected to expire on an estimated 25 million units of affordable housing subsidized by the U.S. government. Another 3 million units of so-called naturally occurring affordable housing—units not subsidized but with a natural price point that is affordable compared with market-rate units—will also be lost during the next ten to 15 years.

But what will not change—and in fact only stands to increase—is the demand for housing for people on fixed incomes and those earning 40 to 120 percent of the area median income (AMI).

At the same time, members of a new generation of “social-impact investors” are eager to place their equity in housing as a platform to address a variety of issues they care about, including economic mobility and disparities in health outcomes and educational attainment. Panelists at the recent ULI Housing Opportunity 2016 conference in Boston discussed platforms aimed at expanding the pool of equity investors with the potential to shore up the supply of affordable and workforce housing.

Read the full article on Urban Land.