Low Income Investment Fund (LIIF) announced today the launch of the Keeping Homes Affordable Fund developed in partnership with Calvert Impact and Arnold Ventures. The program will provide acquisition financing for nonprofit and mission-minded for-profit developers to acquire and preserve affordable multifamily projects.

The launch of “Keeping Homes Affordable” comes as the availability of affordable housing shrinks nationally, and especially across the southeast in cities like Atlanta and Charlotte due to challenges such as the expiration of income restrictions on properties, the continued underinvestment and disrepair of older properties, and population shifts from coastal cities to the South during the COVID-19 pandemic.

“Unfortunately, this has put many individuals and families at risk of losing affordable housing, which is already in short supply,” said Kimberly Latimer-Nelligan, LIIF’s President. “We see the creation of the fund as a critical step in enabling developers to maintain affordable units in their housing stock and increase the supply of these units. Now is the time to act to prevent a worsening of the housing crisis.”

The program will allow mission-based owners of affordable residential buildings options to position at-risk properties for long-term recapitalization and preservation. The fund offers flexible lending terms to help developers compete with private market-rate buyers, offering developers 5-year, below market interest rates, and up to 100% Loan-to-Value. LIIF has committed $15 million in capital for the program, with Calvert Impact Partners providing $35 million and Arnold Ventures $5 million in top loss capital. As the originating lender, servicer and asset manager for the fund, LIIF will originate all loans within the program.

“Diminishing housing affordability disproportionately impacts communities of color who are facing displacement as their neighborhoods become increasingly gentrified,” said Kevin Fanfoni, Investments Director at Calvert Impact. “With the threat of losing a significant share of low-to-moderate income housing options intensifying, we are committed to supporting developers who are motivated to save, rehabilitate and build affordable units for those facing housing insecurity.”

“LIIF and Calvert are ideal partners in our charge to invest in initiatives that sustain underserved communities and enable them to thrive,” said Chris Hensman, Director of New Programs at Arnold Ventures. “We are eager to put these funds to work in mobilizing an effort that ensures affordability remains intact and improves the quality of life for those living in transitioning areas.”

In accordance with the affordable housing pillar of LIIF’s Strategic Plan, the Keeping Homes Affordable Fund will directly support the organization’s mission to advance racial equity by generating equitable outcomes and generating economic mobility in the communities LIIF serves, as well as a commitment against the displacement of any community member due to unaffordable housing.

To learn more about LIIF, please visit https://www.liifund.org/.