Housing Impact Fund (I & II)
Through financing provided through HIF, multifamily rental housing with below market rents are acquired by Ascent Housing, HIF has been paired with other financing tools, such as the City’s housing bond program, which amended in 2019 to support preservation, and requires the unit to maintain affordability for 80% of the units for households between 30% and 80% AMI through a 20-year deed restriction, which aligns with the affordability deed restrictions of HIF. Projects financed through HIF that are sold after the 20-year deed restriction are required to divert 60% of profits to another fund for affordable housing, creating a sustainable financing source.
Sources
- https://www.ascenthousing.com/housing-impact-fund
- https://www.fastcompany.com/90597128/charlotte-may-have-cracked-the-code-on-affordable-housing-heres-how
- https://qcnerve.com/shamrock-gardens-affordable-housing/
Last updated: Nov. 8, 2024
Program details
City: Charlotte
Program geography: City
Entities involved: For-Profit Entity
Market Category: High Cost Market Resources
Tool Category: Tools for Mission Driven Owners
Tool Description: Acquisition Financing
Year started: 2020
Building type: Typically properties with 100 units or more.
Target tenants: 50% of units serve 60% AMI and below households and 20% of units serve 80% AMI and below households, at or below 30% AMI
Affordability restrictions: Yes. 20 year deed restriction
Funding description: Two civically minded Charlotte business leaders, Erskine Bowles and Nelson Schwab, bolstered the initial fundraising effort for the fund and structured HIF to ensure steady return for investors, 8% - Fund I was launched with funds from Truist Financial Corporation, Atrium Health, Lending Tree, Movement Mortgage, local real estate development firms, and $20 million from Charlotte Housing Opportunity Investment Fund (CHOIF), a private sector housing investment fund launched by the Foundation for the Carolinas and managed by the Local Initiatives Support Corporation (LISC). - Fund II’s key funders include Truist, PNC, Atrium, Honeywell and Leon Levine Foundation.
Funding sources: Social Impact Equity