CareSource Commits Millions to Affordable Housing Investments in Georgia
Friday, September 11th, 2020
CareSource, a nonprofit multi-state managed care plan, announced it is committing $3.5 million in investments to affordable housing projects in Atlanta and Savannah. This commitment is part of the $50 million financial investment CareSource is making to housing projects across the U.S., focusing on underserved communities with high rates of poverty.
“CareSource understands the impact that safe and affordable housing has on the health of our members,” said Bobby Jones, President of CareSource Georgia. “Our direct investment in affordable housing will provide financial resources to developers who are working to create housing options for low-income individuals. Our goal with this investment is to assist in producing additional opportunities for our members and fellow Georgians for affordable housing.”
According to the National Low Income Housing Coalition, there is a shortage of rental homes that are affordable and available to extremely low-income households in Georgia. These households’ incomes are at or below the poverty guideline or 30% of their area median income. Many of these households are severely cost-burdened, spending more than half of their income on housing. They report that severely cost-burdened households are more likely than other renters to sacrifice other necessities like healthy food and healthcare to pay the rent.
The COVID-19 pandemic has only worsened the number of families who are housing insecure. An April 2020 study by Washington University in St. Louis suggests individuals are now facing increased housing hardship such as evictions, delayed rent or mortgage payments, and unexpected utility payments and home repairs.
CareSource’s announcement follows years of affordable housing support through CareSource Foundation grants. Earlier this year, the organization announced its role as an investor in the $100 million housing action fund administered by the Affordable Housing Trust for Columbus, Ohio and Franklin County, which provides below-market financing for affordable housing development.
Additionally, CareSource joined the Grady Health System, Kaiser Permanente, Piedmont Healthcare, St. Joseph’s Health System/Mercy Care and WellStar Health System last December and signed a commitment to collectively address affordable housing with the Atlanta Regional Collaborative for Health Improvement (ARCHI).
“While it’s unusual for a nonprofit like CareSource to invest this way, we feel strongly that it makes good financial sense for the organization,” said Dave Goltz, chief financial officer at CareSource. “CareSource is not only diversifying existing investment dollars but also aligning our investments with our mission and better serving members.”