Corporations, foundations invited to invest in local affordable housing developments
Housing Trust Silicon Valley has launched the new TECH Fund campaign that will allow local corporations and foundations to invest in affordable housing developments that will add or preserve 10,000 homes in the region over the next 10 years.
Cisco Foundation has already signed on as the initial investor with a $2.5 million commitment and a stated willingness to increase its investment to as much as $10 million in the coming months to help the Housing Trust meet the $50 million goal for the fund’s first round.
“The housing crisis has created horrendous traffic and untenable situations for families,” said Randy Pond, Secretary and Board Member of the Cisco Foundation. “We need to come together as a community to solve these issues – and they are solvable. Now is the time for the private sector to step up.”
Corporations can participate in the TECH (Tech+Equity+Community+Housing) Fund by investing in a community impact note. They can choose between a five-year note at 1.5% interest or a 10-year note at 2% interest. Foundations can make a program-related investment or invest in the community impact note. All investments will be repaid in full at the end of maturity, and investments in the TECH Fund are backed by the Housing Trust’s AA- Standard & Poor’s rating.
“The TECH Fund provides the Housing Trust with additional lending capital that we can use to help affordable housing developers acquire property for new multi-family construction,” explained Kevin Zwick, Housing Trust Chief Executive Officer. “It is an innovative tool that will jump-start new housing projects that will build a pipeline to take advantage of County funds generated from Measure A, as well as other local and state financing. “
“The housing crisis in our region is not going to dissipate,” he added. “It is taking a toll on the quality of life of thousands of our residents, harming our environment with traffic-generated air pollution, and threatening the economic sustainability of our region. This is an opportunity for corporations and foundations to invest in solution that will make a difference.”
Since 2000, Housing Trust Silicon Valley has invested $131 million in multi-family lending, home ownership and homelessness reduction programs that created 14,858 affordable housing opportunities. It is the first nonprofit Community Development Finance Institute (CDFI) to receive a Standard & Poor’s rating.