The Living Cities Catalyst Fund has closed a $3 million loan to the Bay Area Transit Oriented Affordable Housing Fund. The $50 million revolving Bay Area loan fund will provide early-stage financing for housing and mixed-use developments in mixed-income TOD communities. Loan products in the pipeline include pre-development, acquisition, construction to mini-perm loans, construction bridge loans and New Markets Tax Credit leverage loans.
The Bay Area loan fund is sponsored by the Great Communities Collaborative, a 24-member collective of Bay Area nonprofits, national organizations, and regional philanthropic entities formed five years ago when foundations and regional nonprofits in the Bay Area of California recognized that the region’s transit oriented development opportunity was at the heart of their missions to address inequities, increase affordable housing and transit options, and promote environmental sustainability. The Great Communities Collective is working to shape the blueprints of the next generation of growth so that development is concentrated around transit and meets the needs of the most vulnerable populations in the Bay Area.
The Bay Area loan fund will focus on nine priority geographic areas where city leadership has agreed to support denser and more compact development in communities close to transit. The Low Income Investment Fund (LIIF) will manage the fund and act as administrative agent.
The Bay Area loan fund was seeded by a $10 million anchor commitment from the Metropolitan Transportation Commission through its Transportation for Livable Communities program. Other investors include Morgan Stanley, Citi Community Capital, The Ford Foundation, and the San Francisco Foundation. The six Community Development Financial Institutions which will serve as originating lenders are LIIF, the Corporation for Supportive Housing, Enterprise Community Loan Fund, Local Initiatives Support Corp. (LISC), the Northern California Community Loan Fund and Opportunity Fund.
The Metropolitan Transportation Commission estimates that developers will be able to use the fund to help finance the acquisition of at least 20 to 30 acres around the region, which will support the development of 1,100 to 3,800 units of affordable housing, depending on the density of the projects.
The Living Cities Catalyst Fund provides below-market rate loans and guarantees to high-capacity organizations that contribute substantially to advancing Living Cities’ programmatic agenda. Such organizations may connect underserved communities to mainstream markets by integrating previously isolated systems; leveraging existing institutions in new ways; unlocking substantial resources from public, private and social sector sources; and delivering high-impact programs at scale.
Read more about the most recent loan and the Bay Area Transit Oriented Affordable Housing Fund:
MTC Video: http://www.mtc.ca.gov/news/video/3-23-11.htm
MTC Release & Photos: http://www.mtc.ca.gov/news/press_releases/rel523.htm
Affordable Housing Finance Website: http://www.housingfinance.com/news/ahf/032511-ahf-TOD-Fund-Established-for-the-Bay-Area.htm