Permanent supportive housing is a proven approach to reducing homelessness, and in Los Angeles, Nonprofit Finance Fund (NFF) is speeding development of much-needed homes. NFF’s $10 million Accelerating Permanent Supportive Housing Fund provides flexible financing to support developers’ critical work increasing the number of projects in development.
Investors include the California Community Foundation (CCF), the Weingart Foundation, and UniHealth Foundation. Additional grants provided by CCF, CIT Bank, and the Community Development Financial Institutions Fund (CDFI Fund) support the project.
Nonprofit housing developers face substantial predevelopment costs; as they increase the number of projects, the gap between easily accessible pre-development funds and costs grows. This Fund will provide flexible loans that developers can use and reinvest in multiple projects over an extended period of time.
“Existing financing sources haven’t fully addressed barriers to housing production; nonprofits doing this work need more flexible early stage funds to support the dramatic increase in home construction currently underway,” said Ann Sewill, CCF’s vice president for health and housing. “NFF’s deep understanding of the specific financial needs of housing developers informed this Fund and our collaboration.”
“This investment will help end homelessness for hundreds of people with disabilities who need safe, supportive, homes,” said Dora Leong Gallo, president and chief executive of financing recipient A Community of Friends. “This funding allows us to significantly expand the number of projects we’re able to move forward simultaneously, making the most of our resources during the complex predevelopment phase.”
NFF is working to address homelessness in Los Angeles on several fronts, in partnership with foundations, nonprofits, and City and County agencies. This includes supporting developers with capital, as well as delivering financial consulting services to community-based permanent supportive housing providers.
NFF’s recent report, Strengthening Los Angeles Permanent Housing Developers, includes additional information about market needs and opportunities.
“The Los Angeles community has resoundingly supported the creation of permanent supportive housing to alleviate the homelessness crisis,” said Jennifer Kawar, Vice President and Chief Investment Officer of NFF. “We’ve launched this fund to help developers remove barriers and accelerate construction of critically-needed housing.”
The Accelerating Permanent Supportive Housing Fund was launched to support a pre-identified group of housing developers. Based on the strong market need, NFF might expand the Fund pending additional investor and philanthropic support.