Member TA Question: Program-Related Investments

Member TA Question:

Has anyone in our community utilized a program-related investment (PRI), or similar structure, to enable foundations to invest in low-income housing developments?
– Christopher Himes, Salesforce Foundation (July, 2014)

Member Response:

The California Community Foundation has used a program related investment (PRI) to support low-income housing development in two ways, through an affiliate and directly on projects.

  • The California Community Foundation provided a program related investment (PRI) to an affiliate, the Community Foundation Land Trust. The Community Foundation Land Trust then used the PRI funds to purchase property to be ground leased or sold to affordable housing developers. Over the years, the Community Foundation Land Trust started providing loans to affordable housing developers.
  • Lending became more frequent than land acquisition and the California Community Foundation transitioned to providing PRI loans directly to affordable housing developers. This loan program is specific to affordable housing near transit in Los Angeles County. The Foundation mainly provides short-term loans to experienced affordable housing developers for land acquisition and is repaid at the start of construction.

Interested in learning more about the CFF’s program-related investment? Download these documents on their PRI Direct Lending program [download link, hosted on CP website] or contact Chris Hubbard at the CFF (contact information below).

Chris Hubbard | Program Manager, Housing & Economic Development
California Community Foundation: Building the Future of Los Angeles
221 S. Figueroa St., Suite 400
Los Angeles, CA 90012
chubbard@calfund.org
TEL: 213.413.4130 ext. 215

 

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